,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #gdbb  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,febru>y #i1          
#bjbf,mrs4 ,cammack 7= h]self & ,mr4    
,moylan7 introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to all[ ! e/abli%m5t (   
fir/-"t homebuy] sav+s acc\nts4  #a4    
,%ort title  ,?is ,act may be cit$ z !  
,next-,g5]ation ,equity ,sav+s ,tool    
,act or ! ,,ne/ ,act4  #b4 ,fir/-"t     
homebuy] sav+s acc\nt  7a7 ,9 g5]al ,"p 
,,vii ( sub*apt] ,b ( *apt] #a ( !      
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #bbc ! foll[+ new
 section3  #bbc;,a4 ,fir/-"t homebuy]   
sav+s acc\nt  7a7 ,d$uction all[$ ,9 !  
case ( an acc\nt b5efici>y1 !re %all be 
all[$ z a d$uction = ! taxable ye> an   
am\nt equal to ! aggregate am\nt paid 9 
ca% dur+ su* taxable ye> by or on behalf
 ( su* individual to a fir/-"t homebuy] 
sav+s acc\nt ( su* individual4  7b7     
,def9itions & special rules ,= purposes 

( ?is section-- 7#a7 ,fir/-"t homebuy]  
sav+s acc\nt ,! t]m fir/-"t homebuy]    
sav+s acc\nt means a tru/ creat$ or     
organiz$ 9 ! ,unit$ ,/ates exclusively =
 ! purpose ( pay+ ! qualifi$ home       
own]%ip exp5ses ( ! acc\nt b5efici>y 7& 
designat$ z a fir/-"t homebuy] sav+s    
acc\nt at ! "t creat$ or organiz$71 b   
only if ! writt5 gov]n+ in/rum5t creat+ 
! tru/ meets ! foll[+ requirem5ts3  7,a7
 ,no contribution w be accept$-- 7i7 if 
! acc\nt b5efici>y _h an own]%ip int]e/ 
9 a pr9cipal resid5ce at any "t dur+ !  
#c-ye> p]iod end+ on ! date ( !         
contribution1  7ii7 if su* contribution 
w\ld result 9 lifetime aggregate        
contributions to ! acc\nt exce$+ ! ,/ate
 ?re%old am\nt1  7iii7 unless x is 9    
ca%1 or  7iv7 except 9 ! case ( rollov] 
contributions1 if su* contribution w\ld 
result 9 aggregate contributions to !   
acc\nt = ! taxable ye> exce$+ ! am\nt 9 
effect "u subsection 7b77#a77;,b74  7,b7
 ,! tru/ee is a bank 7z def9$ 9 section 
#djh7n77 or ano!r p]son :o demon/rates  

to ! satisfaction ( ! ,secret>y t !     
mann] 9 :i* t p]son w adm9i/] ! tru/ w  
be consi/5t ) ! requirem5ts ( ?is       
section4  7,c7 ,no "p ( ! tru/ assets w 
be inve/$ 9 life insurance contracts4   
7,d7 ,! assets ( ! tru/ %all n be       
comm+l$ ) o!r prop]ty except 9 a common 
tru/ fund or common inve/m5t fund4  7,e7
 ,! acc\nt b5efici>y has atta9$ ! age ( 
#ah4  7#b7 ,/ate ?re%old am\nt ,! t]m   
,/ate ?re%old am\nt means #bj p]c5t ( ! 
m$ian home sale price 9 ! ,/ate 9 :i*   
su* acc\nt is e/abli%$4  7#c7 ,qualifi$ 
home own]%ip exp5ses ,! t]m qualifi$    
home own]%ip exp5ses means co/s to      
acquire1 con/ruct1 or recon/ruct a      
resid5ce1 includ+ a d[n paym5t1 f9anc+1 
or o!r clos+ co/s relat+ to ! pur*ase1  
if su* resid5ce is ! prim>y resid5ce ( !
 acc\nt b5efici>y ( a fir/-"t homebuy]  
sav+s acc\nt & su* acc\nt b5efici>y is a
 fir/-"t homebuy] 7z def9$ 9 section    
#cf7;c77 ) respect to su* pur*ase4  7#d7
 ,acc\nt b5efici>y ,! t]m acc\nt        
b5efici>y means ! individual on ^:      

behalf ! fir/-"t homebuy] sav+s acc\nt  
is e/abli%$4  7#e7 ,c]ta9 rules to apply
 ,rules simil> to ! foll[+ rules %all   
apply = purposes ( ?is section3 7,a7    
,section #bai7;d77#b7 7relat+ to no     
d$uction = rollov]s74  7,b7 ,section    
#bai7;f77#c7 7relat+ to "t :5           
contributions deem$ made74  7,c7        
,section #bai7;f77#e7 7relat+ to employ]
 paym5ts74  7,d7 ,section #djh7;g7      
7relat+ to community prop]ty laws74  7c7
 ,tax treatm5t ( acc\nts  7#a7 ,9 g5]al 
,a fir/-"t homebuy] sav+s acc\nt is     
exempt f taxation "u ?is subtitle unless
 su* acc\nt has ceas$ to be a fir/-"t   
homebuy] sav+s acc\nt4 ,not)/&+ ! prec$+
 s5t5ce1 any su* acc\nt is subject to ! 
taxes impos$ by section #eaa 7relat+ to 
imposition ( tax on unrelat$ bus9ess    
income ( *>itable1 etc4 organizations74 
7#b7 ,acc\nt t]m9ations  7,a7           
,acquisition ( pr9cipal resid5ce ,if !  
acc\nt b5efici>y acquires an own]%ip    
int]e/ 9 a pr9cipal resid5ce-- 7i7 ea*  
fir/-"t homebuy] sav+s acc\nt ( su*     

b5efici>y %all cease to be a fir/-"t    
homebuy] sav+s acc\nt z ( ! close ( !   
#fj-;day p]iod beg9n+ on ! date ( su*   
acquisition1 &  7ii7 ! balance ( su*    
acc\nt z ( su* date %all be treat$ z    
di/ribut$ to su* b5efici>y4  7,b7       
,prohibit$ transactions1 etc ,rules     
simil> to ! rules ( p>agraphs 7#b7 &    
7#d7 ( section #djh7;e7 %all apply to   
any fir/-"t homebuy] sav+s acc\nt1 & any
 am\nts treat$ z di/ribut$ "u su* rules 
%all be treat$ z n us$ to pay qualifi$  
home own]%ip exp5ses4  7d7 ,tax treatm5t
 ( di/ributions  7#a7 ,am\nts us$ =     
qualifi$ home own]%ip exp5ses ,any am\nt
 paid or di/ribut$ out ( a fir/-"t      
homebuy] sav+s acc\nt :i* is us$        
exclusively to pay qualifi$ home own]%ip
 exp5ses ( any acc\nt b5efici>y %all n  
be includible 9 gross income4  7#b7     
,inclusion ( am\nts n us$ = qualifi$    
home own]%ip exp5ses ,any am\nt paid or 
di/ribut$ out ( a fir/-"t homebuy] sav+s
 acc\nt :i* is n us$ exclusively to pay 
! qualifi$ home own]%ip exp5ses ( !     

acc\nt b5efici>y %all be includ$ 9 !    
gross income ( su* b5efici>y4  7#c7     
,excess contributions return$ be=e due  
date ( return  7,a7 ,9 g5]al ,if any    
excess contribution is contribut$ = a   
taxable ye> to any fir/-"t homebuy]     
sav+s acc\nt ( an individual1 p>agraph  
7#b7 %all n apply to di/ributions f !   
fir/-"t homebuy] sav+s acc\nts ( su*    
individual 7to ! ext5t su* di/ributions 
d n exce$ ! aggregate excess            
contributions to all su* acc\nts ( su*  
individual = su* ye>7 if-- 7i7 su*      
di/ribution is receiv$ by ! individual  
on or be=e ! la/ day prescrib$ by law   
7includ+ ext5sions ( "t7 = fil+ su*     
individual's return = su* taxable ye>1 &
  7ii7 su* di/ribution is accompani$ by 
! am\nt ( net income attributable to su*
 excess contribution4  ,any net income  
describ$ 9 clause 7ii7 %all be includ$ 9
 ! gross income ( ! individual = !      
taxable ye> 9 :i* x is receiv$4  7,b7   
,excess contribution ,= purposes (      
subp>agraph 7,a71 ! t]m excess          

contribution means any contribution 7o!r
 ?an a rollov] contribution describ$ 9  
p>agraph 7#e77 :i* is nei!r excludable f
 gross income "u section #aci;,j nor    
d$uctible "u ?is section4  7#d7         
,additional tax = di/ributions n us$ =  
home own]%ip exp5ses  7,a7 ,9 g5]al ,!  
tax impos$ by ?is *apt] = any taxable   
ye> on any taxpay] :o receives a paym5t 
or di/ribution f a fir/-"t homebuy]     
sav+s acc\nt :i* is includible 9 gross  
income %all be increas$ by #bj p]c5t ( !
 am\nt :i* is s includible4  7,b7       
,exceptions ,subp>agraph 7,a7 %all n    
apply if ! paym5t or di/ribution is made
 to ! acc\nt b5efici>y 7or to ! e/ate ( 
su* acc\nt b5efici>y7 on or aft] ! dea? 
( su* acc\nt b5efici>y4  7#e7 ,rollov]  
contribution ,an am\nt is describ$ 9 ?is
 p>agraph z a rollov] contribution if x 
meets ! foll[+ requirem5ts3 7,a7 ,9     
g5]al ,p>agraph 7#b7 %all n apply to any
 am\nt paid or di/ribut$ f a fir/-"t    
homebuy] sav+s acc\nt to ! acc\nt       
b5efici>y to ! ext5t ! am\nt receiv$ is 

paid into a fir/-"t homebuy] sav+s      
acc\nt = ! b5efit ( su* b5efici>y n lat]
 ?an ! #fj? day aft] ! day on :i* !     
b5efici>y receives ! paym5t or          
di/ribution4  7,b7 ,limitation ,?is     
p>agraph %all n apply to any am\nt      
describ$ 9 subp>agraph 7,a7 receiv$ by  
an individual f a fir/-"t homebuy] sav+s
 acc\nt if1 at any "t dur+ ! #a-ye>     
p]iod end+ on ! day ( su* receipt1 su*  
individual receiv$ any o!r am\nt        
describ$ 9 subp>agraph 7,a7 f a fir/-"t 
homebuy] sav+s acc\nt :i* 0 n includible
 9 ! individual's gross income because (
 ! application ( ?is p>agraph4  7#f7    
,special rules = dea? & divorce ,rules  
simil> to ! rules ( p>agraphs 7#g7 &    
7#h7 ( section #bbc7;f7 %all apply =    
purposes ( ?is section4  7#g7           
,disall[ance ( exclud$ am\nts z         
d$uction1 cr$it1 or exclusion ,no       
d$uction1 cr$it1 or exclusion %all be   
all[$ to ! taxpay] "u any o!r section ( 
?is *apt] = any qualifi$ home own]%ip   
exp5ses to ! ext5t tak5 into acc\nt 9   

det]m9+ ! am\nt ( ! exclusion "u        
p>agraph 7#a74  7e7 ,contribution limit 
adju/m5t  7#a7 ,9 g5]al ,except z       
provid$ 9 p>agraph 7#b71 9 ! case ( any 
taxable ye> beg9n+ aft] #bjbe1 !        
,secret>y1 aft] consultation ) !        
,secret>y ( ,h\s+ & ,urban ,developm5t1 
%all adju/ ! ,/ate ?re%old am\nt = ea*  
,/ate to reflect ! m$ian home price 9   
ea* su* ,/ate us+ ! mo/ rec5t data      
available to ! ,secret>y4  7#b7 ,limit  
may n be l[]$ ,! adju/m5t describ$ 9    
p>agraph 7#a7 may only be us$ to        
increase ! ,/ate ?re%old am\nt = a      
,/ate4  7f7 ,reports  7#a7 ,9 g5]al ,!  
tru/ee ( a fir/-"t homebuy] sav+s acc\nt
 %all make su* reports reg>d+ su* acc\nt
 to ! ,secret>y & to ! acc\nt b5efici>y 
) respect to contributions1             
di/ributions1 & su* o!r matt]s z !      
,secret>y may require4 ,! reports       
requir$ by ?is subsection %all be fil$  
at su* "t & 9 su* mann] & furni%$ to su*
 individuals at su* "t & 9 su* mann] z  
may be requir$4  7#b7 ,rollov]          

di/ributions ,9 ! case ( any di/ribution
 describ$ 9 subsection 7e77#e71 ! (fic] 
or employee hav+ control ( ! fir/-"t    
homebuy] sav+s acc\nt 7or _! designee7  
%all provide a report to ! tru/ee ( !   
fir/-"t homebuy] sav+s acc\nt to :i* !  
di/ribution is made4 ,su* report %all be
 fil$ at su* "t & 9 su* mann] z !       
,secret>y may require & %all include    
in=mation ) respect to ! contributions1 
di/ributions1 & e>n+s ( ! fir/-"t       
homebuy] sav+s acc\nt z ( ! date ( !    
di/ribution describ$ 9 su* subsection1  
toge!r ) su* o!r matt]s z ! ,secret>y   
may require4  4  7b7 ,d$uction all[$    
above ! l9e ,section #fb7;a7 ( su* ,code
 is am5d$ by ins]t+ aft] p>agraph 7#ba7 
! foll[+ new p>agraph3  7#bb7 ,fir/-"t  
homebuy] sav+s acc\nts ,! d$uction all[$
 by section #bbc;,a4  4  7c7 ,exclusions
 = employ] contributions to fir/-,"t    
homebuy] sav+s acc\nts  7#a7 ,exclusion 
f income tax  7,a7 ,9 g5]al ,"p ,,iii ( 
sub*apt] ,b ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ aft] section #aci;,i !  

foll[+ new section3  #aci;,j4  ,fir/-"t 
homebuy] sav+s acc\nt contributions  ,9 
! case ( an acc\nt b5efici>y 7z def9$ 9 
section #bbc;,a7c77#c771 gross income   
does n include am\nts contribut$ by su* 
acc\nt b5efici>y's employ] to any       
fir/-"t homebuy] sav+s acc\nt 7z def9$ 9
 section #bbc;,a7c77#a77 ( su* acc\nt   
b5efici>y4  4  7,b7  ,cl]ical am5dm5t   
,! table ( sections = "p ,,iii (        
sub*apt] ,b ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ aft] ! item relat+ to   
section #aci;,i ! foll[+ new item3      
,sec4 #aci;,j4 ,fir/-"t homebuy] sav+s  
acc\nt contributions4  4  7#b7          
,exclusion f employm5t taxes  7,a7      
,social security taxes  7i7  ,9 g5]al   
,section #caba7;a7 is am5d$ by /rik+ or 
at ! end ( p>agraph 7#bb77;,b71 by /rik+
 ! p]iod at ! end ( p>agraph 7#bc7 &    
ins]t+ 1 or1 & by ins]t+ aft] p>agraph  
7#bc7 ! foll[+ new p>agraph3  7#bd7 any 
paym5t made to or = ! b5efit ( an       
employee if at ! "t ( su* paym5t x is   
reasonable to believe t ! employee w be 

able to exclude su* paym5t f income "u  
section #aci;,j4  4  7ii7  ,con=m+      
am5dm5t to ,social ,security ,act       
,section #bji7;a7 ( ! ,social ,security 
,act is am5d$ by /rik+ or at ! end (    
p>agraph 7#ai71 by /rik+ 74 at ! end (  
p>agraph 7#bj7 & ins]t+ 2 or1 & by      
ins]t+ aft] p>agraph 7#bj7 ! foll[+ new 
p>agraph3  7#ba7 any reimbursem5t :i* is
 excludable f gross income "u section   
#aci;,j ( ! ,int]nal ,rev5ue ,code (    
#aihf4  4  7,b7  ,railroad retirem5t tax
  ,section #cbca7;e7 ( su* ,code is     
am5d$ by add+ at ! end ! foll[+ new     
p>agraph3  7#ac7  ,fir/-"t homebuy]     
sav+s acc\nt contributions  ,! t]m      
#8comp5sation' %all n include any paym5t
 made to or = ! b5efit ( an employee if 
at ! "t ( su* paym5t x is reasonable to 
believe t ! employee w be able to       
exclude su* paym5t f income "u section  
#aci;,j4  4  7,c7  ,unemploym5t tax     
,section #ccjf7;b7 ( su* ,code is am5d$ 
by /rik+ or at ! end ( p>agraph         
7#ai77;,b71 by /rik+ ! p]iod at ! end ( 

p>agraph 7#bj7 & ins]t+ 2 or1 & by      
ins]t+ aft] p>agraph 7#bj7 ! foll[+ new 
p>agraph3  7#ba7 any paym5t made to or =
 ! b5efit ( an employee if at ! "t ( su*
 paym5t x is reasonable to believe t !  
employee w be able to exclude su* paym5t
 f income "u section #aci;,j4  4  7,d7  
,)hold+ tax  ,section #cdja7;a7 ( su*   
,code is am5d$ by /rik+ or at ! end (   
p>agraph 7#bb71 by /rik+ ! p]iod at !   
end ( p>agraph 7#bc7 & ins]t+ 2 or1 & by
 ins]t+ aft] p>agraph 7#bc7 ! foll[+ new
 p>agraph3  7#bd7 any paym5t made to or 
= ! b5efit ( an employee if at ! "t (   
su* paym5t x is reasonable to believe t 
! employee w be able to exclude su*     
paym5t f income "u section #aci;,j4  4  
7#c7  ,employ] contributions requir$ to 
be %[n on ,w-#b  ,section #fjea7;a7 (   
su* ,code is am5d$ by /rik+ & at ! end (
 p>agraph 7#af71 by /rik+ ! p]iod at !  
end ( p>agraph 7#ag7 & ins]t+ 1 &1 & by 
ins]t+ aft] p>agraph 7#ag7 ! foll[+ new 
p>agraph3  7#ah7 ! am\nt contribut$ to  
any fir/-"t homebuy] sav+s acc\nt 7z    

def9$ 9 section #bbc;,a7c77#a77 ( su*   
employee4  4  7d7 ,tax on excess        
contributions  7#a7 ,9 g5]al ,section   
#digc7;a7 ( su* ,code is am5d$ by /rik+ 
or at ! end ( p>agraph 7#e71 by ins]t+  
or at ! end ( p>agraph 7#f71 & by ins]t+
 aft] p>agraph 7#f7 ! foll[+ new        
p>agraph3  7#g7 a fir/-"t homebuy] sav+s
 acc\nt 7)9 ! mean+ ( section #bbc;,a74 
4  7#b7 ,excess contribution ,section   
#digc ( su* ,code is am5d$ by add+ at ! 
end ! foll[+ new subsection3  7i7       
,excess contributions to fir/-,"t       
homebuy] sav+s acc\nt ,= purposes ( ?is 
section1 9 ! case ( fir/-"t homebuy]    
sav+s acc\nts 7z def9$ 9 section        
#bbc;,a71 ! t]m excess contributions    
means ! sum (--  7#a7 ! aggregate am\nt 
contribut$ = ! taxable ye> to fir/-"t   
homebuy] sav+s acc\nts 7o!r ?an a       
rollov] contribution contribut$ "u      
section #bbc;,a7e77#d7 or 7#f77 :i* is  
nei!r excludable f gross income "u      
section #aci;,j nor all[able z a        
d$uction "u section #bbc;,a = su* ye>1  

plus  7#b7 ! am\nt det]m9$ "u ?is       
subsection = ! prec$+ taxable ye>1 r$uc$
 by ! sum (--  7,a7 ! di/ribution out ( 
! fir/-"t homebuy] sav+s acc\nts :i* 7  
includ$ 9 gross income "u section       
#bbc;,a7e77#a71 plus  7,b7 ! excess 7if 
any7 (-- 7i7 ! maximum am\nt all[able z 
a d$uction "u section #bbc;,a7b7        
7det]m9$ )\t reg>d to section #aci;,j7 =
 ! taxable ye>1 ov]  7ii7 ! am\nt       
contribut$ to fir/-"t homebuy] sav+s    
acc\nts = ! taxable ye>4  ,= purposes ( 
?is subsection1 any contribution :i* is 
di/ribut$ out ( ! fir/-"t homebuy] sav+s
 acc\nt 9 a di/ribution to :i* section  
#bbc;,a7e77#d77;,c7 applies %all be     
treat$ z an am\nt n contribut$4  4  7e7 
,tax on prohibit$ transactions  7#a7    
,section #dige7;c7 ( su* ,code is am5d$ 
by add+ at ! end ! foll[+ new p>agraph3 
7#h7 ,special rule = fir/-"t homebuy]   
sav+s acc\nts ,an individual = ^: b5efit
 a fir/-"t homebuy] sav+s acc\nt 7)9 !  
mean+ ( section #bbc;,a7c77 is e/abli%$ 
%all be exempt f ! tax impos$ by ?is    

section ) respect to any transaction    
conc]n+ su* acc\nt 7:i* w\ld o!rwise be 
taxable "u ?is section7 if1 ) respect to
 su* transaction1 ! acc\nt ceases to be 
a fir/-"t homebuy] sav+s acc\nt by      
reason ( ! application ( section        
#bbc7;d77#b7 to su* acc\nt4  4  7#b7    
,section #dige7;e77#a7 ( su* ,code is   
am5d$ by /rik+ or at ! end ( subp>agraph
 7,f71 by r$esignat+ subp>agraph 7,g7 z 
subp>agraph 7,h71 & by ins]t+ aft]      
subp>agraph 7,f7 ! foll[+ new           
subp>agraph3  7,g7 a fir/-"t homebuy]   
sav+s acc\nt describ$ 9 section         
#bbc;,a7c74  4  7f7  ,p5alty = failure  
,to file reports  ,section #ffic7;a77#b7
 ( su* ,code is am5d$ by /rik+ & at !   
end ( subp>agraph 7,e71 by /rik+ ! p]iod
 at ! end ( subp>agraph 7,f7 & ins]t+ 1 
&1 & by ins]t+ aft] subp>agraph 7,f7 !  
foll[+ new subp>agraph3  7,g7 ,section  
#bbc;,a7g7 7relat+ to fir/-"t homebuy]  
sav+s acc\nts74  4  7g7 ,con=m+ am5dm5ts
  7#a7 ,section #bf7;b77#b7 ( su* ,code 
is am5d$ by /rik+ & at ! end (          

subp>agraph 7,y71 by /rik+ ! p]iod at ! 
end ( subp>agraph 7,z7 & ins]t+ 1 &1 &  
by ins]t+ aft] subp>agraph 7,z7 ! foll[+
 new subp>agraph3  7,,aa7 section       
#bbc;,a7e77#b7 7relat+ to additional tax
 on fir/-"t homebuy] sav+s acc\nt n us$ 
= qualifi$ home own]%ip exp5ses74  4    
7#b7 ,section #djh7;e77#b77;ii7 ( su*   
,code is am5d$ by ins]t+ or to a fir/-"t
 homebuy] sav+s acc\nt "u section       
#bbc;,a7e77#g7 be=e ! p]iod4  7#c7      
,section #ecj7;d77#i77;,a77ii7 ( su*    
,code is am5d$ by ins]t+ 1 to a fir/-"t 
homebuy] sav+s acc\nt "u section        
#bbc;,a7e77#g71 aft] section            
#djh7;e77#b74  7#d7 ,section #hgg;,a (  
su* ,code is am5d$-- 7,a7 9 subsection  
7e77#b7 by ins]t+ a fir/-"t homebuy]    
sav+s acc\nt 7z def9$ 9 section         
#bbc;,a71 aft] section #bbc711 &  7,b7 9
 subsection 7g77#f7 by ins]t+           
#bbc7;e77#d71 aft] #ebi;,a7c77#c714     
7#e7 ,! table ( sections = "p ,,vii (   
sub*apt] ,b ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ aft] ! item relat+ to   

section #bbc ! foll[+ new item3  ,sec4  
#bbc;,a4 ,fir/-"t homebuy] sav+s acc\nt4
  4  7h7 ,effective date ,! am5dm5ts    
made by ?is section %all apply to       
taxable ye>s beg9n+ aft] ,decemb] #ca1  
#bjbe4