,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #ggef  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,m>* #c1 #bjbf,mr4    
,b>rett introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to e/abli% tax-advantag$ 
home[n] sav+s acc\nts4  #a4 ,%ort title 
,?is ,act may be cit$ z ! ,fir/-"t      
,homebuy] ,sav+s ,acc\nt ,act ( #bjbf4  
#b4 ,home[n] sav+s acc\nt  7a7 ,9 g5]al 
,"p ,,vii ( sub*apt] ,b ( *apt] #a (    
subtitle ,a ( ! ,int]nal ,rev5ue ,code (
 #aihf is am5d$ by ins]t+ aft] section  
#bbe ! foll[+ new section3  #bbe;,a4    
,home[n] sav+s acc\nt  7a7 ,d$uction    
all[$ ,9 ! case ( an eligible           
individual1 !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 home[n] sav+s acc\nt (  
su* individual4  7b7 ,def9itions ,=     
purposes ( ?is section-- 7#a7 ,home[n]  
sav+s acc\nt ,! t]m home[n] sav+s acc\nt

 means a tru/ creat$ or organiz$ 9 !    
,unit$ ,/ates z a home[n] sav+s acc\nt  
exclusively = ! purpose ( pay+ qualifi$ 
home[n] exp5ses ( ! acc\nt b5efici>y1 b 
only if ! writt5 gov]n+ in/rum5t creat+ 
! tru/ meets ! foll[+ requirem5ts3 7,a7 
,except 9 ! case ( a rollov]            
contribution1 no contribution w be      
accept$-- 7i7 unless x is 9 ca%1  7ii7  
to ! ext5t su* contribution1 :5 add$ to 
previ\s contributions to ! tru/ = !     
cal5d> ye>1 exce$s ! am\nt 9 effect = ! 
cal5d> ye> "u subp>agraph 7,a7 ( section
 #bai7;b77#e7 7det]m9$ )\t reg>d to     
subp>agraph 7,b7 !re(71 &  7iii7 to !   
ext5t t aft] su* contribution ! am\nt   
held 9 ! acc\nt w\ld exce$ an am\nt     
equal to #bj p]c5t ( ! am\nt publi%$ "u 
p>agraph 7#f7 = ! ye> 9 :i* !           
contribution is made4  7,b7 ,! tru/ee is
 a bank 7z def9$ 9 section #djh7n771 an 
insurance company 7z def9$ 9 section    
#haf71 or ano!r p]son :o demon/rates to 
! satisfaction ( ! ,secret>y t ! mann] 9
 :i* su* 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/ w n be comm+l$ ) o!r    
prop]ty except 9 a common tru/ fund or  
common inve/m5t fund4  7,e7 ,! int]e/ ( 
an individual 9 ! balance 9 8 acc\nt is 
non=feitable4  7#b7 ,eligible individual
 ,! t]m eligible individual means an    
individual if su* individual 7&1 if     
m>ri$1 su* individual's sp\se7 _h no    
pres5t own]%ip int]e/ 9 a pr9cipal      
resid5ce dur+ ! #c-ye> p]iod end+ on !  
pres5t date4  7#c7 ,qualifi$ home[n]    
exp5ses ,! t]m qualifi$ home[n] exp5ses 
means am\nts paid or incurr$ to-- 7,a7  
pur*ase or con/ruct ! pr9cipal resid5ce 
( ! individual if su* individual _h no  
pres5t own]%ip int]e/ 9 a pr9cipal      
resid5ce dur+ ! #c-ye> p]iod end+ on !  
date ( ! pur*ase or beg9n+ ( con/ruction
 ( ! pr9cipal resid5ce1 or  7,b7 make   
alt]ations1 repairs1 or improvem5ts :i* 
meet ! requirem5ts ( section #adc7k77#d7
 7det]m9$ )\t reg>d to ! doll>          

limitation provid$ 9 su* section7 to su*
 pr9cipal resid5ce s pur*as$ or         
con/ruct$4  7#d7 ,acc\nt b5efici>y ,!   
t]m acc\nt b5efici>y means ! individual 
on ^: behalf ! home[n] sav+s acc\nt 0   
e/abli%$4  7#e7 ,pr9cipal resid5ce ,!   
t]m pr9ciple resid5ce has ! same mean+ z
 :5 us$ 9 section #aba4  7#f7           
,publication ( national av]age s+le     
family home price ,! ,secret>y ( !      
,treasury %all1 n lat] ?an ,decemb] #ca 
( ea* cal5d> ye>1 publi% ! e/imat$      
national av]age price ( a s+le family   
home = ! foll[+ cal5d> ye>4  7#g7       
,rollov] contribution ,! t]m rollov]    
contribution means an am\nt paid or     
di/ribut$ f a home[n] sav+s acc\nt to ! 
acc\nt b5efici>y to ! ext5t t-- 7,a7 !  
am\nt receiv$ is paid into a home[n]    
sav+s acc\nt = ! b5efit ( su* b5efici>y 
n lat] ?an ! #fj? day aft] ! day on :i* 
! b5efici>y receives ! paym5t or        
di/ribution1 &  7,b7 su* acc\nt         
b5efici>y did n receive any o!r am\nt   
describ$ 9 subp>agraph 7,a7 f a home[n] 

sav+s acc\nt :i* 0 n includible 9 !     
individual's gross income because (     
subsection 7d77#b77;,b7 dur+ ! #a-ye>   
p]iod end+ on ! date ( su* receipt4  7c7
 ,treatm5t ( contributions  7#a7        
,contribution limit ,! aggregate am\nt (
 contributions = any taxable ye> to all 
home[n] sav+s acc\nts ma9ta9$ = ! b5efit
 ( an individual %all n exce$ ! less]   
(-- 7,a7 ! am\nt 9 effect = ! taxable   
ye> 9 :i* su* contributions are made "u 
subp>agraph 7,a7 ( section #bai7;b77#e7 
7det]m9$ )\t reg>d to subp>agraph 7,b7  
!re(71  7,b7 an am\nt equal to !        
comp5sation includible 9 ! individual's 
gross income = su* taxable ye>1 or  7,c7
 ! am\nt t w\ld result 9 ! am\nt held 9 
! acc\nt exce$+ an am\nt equal to #bj   
p]c5t ( ! am\nt publi%$ "u subsection   
7b77#f7 = ! ye> 9 :i* ! contribution is 
made4  7#b7 ,limitation bas$ on modifi$ 
adju/$ gross income ,! am\nt det]m9$ "u 
p>agraph 7#a77;,a7 = any taxable ye>    
%all be r$uc$ 7b n bel[ z]o7 by ! am\nt 
:i* be>s ! same ratio to su* am\nt z--  

7,a7 ! excess (-- 7i7 ! taxpay]'s adju/$
 gross income = su* taxable ye>1 ov]    
7ii7 ! applicable doll> am\nt 7z def9$ 9
 section #bai7;g77#c77;,b71 det]m9$ aft]
 ! application ( section #bai7;g77#h771 
be>s to  7,b7 #aj1jjj 7#bj1jjj 9 ! case 
( a jo9t return or a m>ri$ individual   
fil+ a sep>ate return74  ,! rules (     
subp>agraphs 7,b7 & 7,c7 ( section      
#bai7;g77#b7 %all apply to any r$uction 
"u ?is p>agraph4  7#c7 ,sp\sal          
contribution  7,a7 ,9 g5]al ,9 ! case ( 
an individual to :om ?is p>agraph       
applies = ! taxable ye>1 ! limitation ( 
p>agraph 7#a7 %all be equal to ! less]  
(-- 7i7 ! comp5sation includible 9 su*  
individual's gross income = ! taxable   
ye>1 plus  7ii7 ! comp5sation includible
 9 ! gross income ( su* individual's    
sp\se = ! taxable ye> r$uc$ by ! am\nt  
all[$ z a d$uction "u subsection 7a7 to 
su* sp\se = su* taxable ye>4  7,b7      
,individual to :om subp>agraph 7,a7     
applies ,subp>agraph 7,a7 %all apply to 
any individual if-- 7i7 su* individual  

files a jo9t return = ! taxable ye>1 &  
7ii7 ! am\nt ( comp5sation 7if any7     
includible 9 su* individual's gross     
income = ! taxable ye> is less ?an !    
comp5sation includible 9 ! gross income 
( su* individual's sp\se = ! taxable    
ye>4  7d7 ,treatm5t ( di/ributions  7#a7
 ,am\nts us$ = qualifi$ home[n] exp5ses 
,any am\nt paid or di/ribut$ out ( a    
home[n] sav+s acc\nt :i* is us$         
exclusively to pay qualifi$ home[n]     
exp5ses %all n be includible 9 gross    
income4  7#b7 ,inclusion ( am\nts n us$ 
= qualifi$ home[n] exp5ses ,any am\nt   
paid or di/ribut$ out ( a home[n] sav+s 
acc\nt :i* is n-- 7,a7 us$ exclusively  
to pay ! qualifi$ home[n] exp5ses ( !   
acc\nt b5efici>y1  7,b7 an exempt$      
di/ribution1 or  7,c7 a rollov]         
contribution1  %all be includ$ 9 ! gross
 income ( su* b5efici>y & ! am\nt ( any 
tax impos$ by ?is *apt] %all be increas$
 by #aj p]c5t on any am\nt s includible4
  7#c7 ,exempt$ di/ribution ,= purposes 
( ?is subsection1 ! t]m exempt$         

di/ribution means an am\nt paid or      
di/ribut$ out ( a home[n] sav+s acc\nt  
by reason (-- 7,a7 an em]g5cy1 includ+--
 7i7 ! loss ( a job or major s\rce (    
income1 or  7ii7 a major heal? ev5t     
lead+ to sub/antial m$ical exp5ses1     
7,b7 a life ev5t1 includ+-- 7i7 acquir+ 
a pres5t own]%ip int]e/ 9 a pr9cipal    
resid5ce by reason ( m>riage1  7ii7 dea?
 ( ! acc\nt b5efici>y1 or  7iii7 !      
acc\nt b5efici>y resid+ outside ! ,unit$
 ,/ates1 or  7,c7 su* o!r circum/ances z
 ! ,secret>y det]m9es appropriate by    
regulation4  7#d7 ,excess contributions 
returns be=e due date ( return  7,a7 ,9 
g5]al ,if any excess contribution is    
contribut$ = a taxable ye> to any       
home[n] sav+s acc\nt ( an individual1   
p>agraph 7#b7 %all n apply to           
di/ributions f ! home[n] 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$4  7,b7   
,excess contribution def9$ ,= purposes (
 subp>agraph 7,a71 ! t]m excess         
contribution means any contribution 7o!r
 ?an a rollov] contribution7 :i* is n   
excludable f gross income "u ?is        
section4  7e7 ,tax treatm5t ( acc\nts   
7#a7 ,9 g5]al ,a home[n] sav+s acc\nt is
 exempt f taxation "u ?is subtitle      
unless su* acc\nt has ceas$ to be a     
home[n] 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]m9ation ,rules simil> to 
! rules ( p>agraphs 7#b7 & 7#d7 (       

section #djh7;e7 %all apply to home[n]  
sav+s acc\nts1 & any am\nt treat$ z     
di/ribut$ "u su* rules %all be treat$ z 
n us$ to pay qualifi$ home[n] exp5ses4  
7f7 ,cu/odial acc\nt ,= purposes ( ?is  
section1 a cu/odial acc\nt %all be      
treat$ z a tru/ if ! assets ( su* acc\nt
 are held by a bank 7z def9$ 9 section  
#djh7n77 or ano!r p]son :o demon/rates1 
to ! satisfaction ( ! ,secret>y1 t !    
mann] 9 :i* he w adm9i/] ! acc\nt w be  
consi/5t ) ! requirem5ts ( ?is section1 
& if ! cu/odial acc\nt w\ld1 except = ! 
fact t x is n a tru/1 con/itute an      
acc\nt describ$ 9 subsection 7b77#a74 ,=
 purposes ( ?is title1 9 ! case ( a     
cu/odial acc\nt treat$ z a tru/ by      
reason ( ! prec$+ s5t5ce1 ! cu/odian (  
su* acc\nt %all be treat$ z ! tru/ee    
!re(4  4  7b7 ,tax on excess            
contributions  7#a7 ,9 g5]al ,section   
#digc7;a7 ( su* ,code is am5d$-- 7,a7 9 
p>agraph 7#e71 by /rik+ or1  7,b7 9     
p>agraph 7#f71 by ins]t+ or aft] !      
comma1 &  7,c7 by ins]t+ aft] p>agraph  

7#f7 ! foll[+ new p>agraph3  7#g7 a     
home[n] sav+s acc\nt 7)9 ! mean+ (      
section #bbe;,a7b77#a771  4  7#b7       
,def9ition ( excess contribution 9 #digc
 ,section #digc ( su* ,code is am5d$ by 
add+ at ! end ! foll[+ new subsection3  
7i7 ,excess contributions to home[n]    
sav+s acc\nt ,= purposes ( ?is section1 
9 ! case ( a home[n] sav+s acc\nt 7)9 ! 
mean+ ( section #bbe;,a7b77#a771 ! t]m  
excess contribution means ! am\nt by :i*
 ! am\nt contribut$ = ! taxable ye> to  
su* acc\nt exce$s ! contribution limit  
"u #bbe;,a7c77#a74  4  7c7 ,cl]ical     
am5dm5t ,! table ( sections = "p ,,vii (
 sub*apt] ,b ( *apt] #a ( subtitle ,a ( 
su* ,code is am5d$ by ins]t+ aft] ! item
 relat+ to section #bbe ! foll[+ new    
item3  ,sec4 #bbe;,a4 ,home[n] sav+s    
acc\nt4  4  7d7 ,effective date ,!      
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ! date ( !  
enactm5t ( ?is ,act4