,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #hbba  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,april #i1 #bjbf,ms4  
,mace introduc$ ! foll[+ bill2 :i* 0    
ref]r$ to ! ,committee on ,ways & ,means
  ,a ,,bill  ,to am5d ! ,int]nal ,rev5ue
 ,code ( #aihf to e/abli% fir/-"t       
homebuy] sav+s acc\nts4  #a4 ,%ort title
  ,?is ,act may be cit$ z ! ,fir/-,"t   
,homebuy] ,sav+s ,act ( #bjbf4  #b4     
,fir/-"t homebuy] 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 ,fir/-"t homebuy] 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 fir/-"t homebuy]    
sav+s acc\nt ( su* individual4  7b7     
,def9itions ,= 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 z a fir/-"t homebuy] sav+s acc\nt
 exclusively = ! purpose ( pay+ qualifi$
 homebuy] exp5ses ( ! acc\nt b5efici>y1 
b only if ! writt5 gov]n+ in/rum5t      
creat+ ! tru/ meets ! foll[+            
requirem5ts3  7,a7 ,no contribution w be
 accept$-- 7i7 unless x is 9 ca%1 or    
7ii7 if su* contribution w\ld result 9  
aggregate contributions to su* acc\nt 9 
excess ( ! contribution limit specifi$ 9
 subsection 7c74  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$1 su* individual's sp\se7 _h no    
pres5t own]%ip int]e/ 9 a resid5tial    
prop]ty dur+ ! #c-ye> p]iod end+ on !   
pres5t date4  7#c7 ,qualifi$ homebuy]   
exp5ses ,= purposes ( ?is section1 ! t]m
 qualifi$ homebuy] exp5ses means am\nts 
paid or incurr$ by ! acc\nt b5efici>y-- 
7,a7 9 ! case ( an eligible individual1 
to pur*ase a pr9cipal resid5ce1 includ+ 
any transaction co/s relat+ to su*      
pur*ase1  7,b7 9 ! case ( an eligible   
individual1 to con/ruct a pr9cipal      
resid5ce1 includ+ pur*as+ l&1 site      
prep>ation1 design co/s1 p]mitt+ co/s1 &
 o!r exp5ses incurr$ to c>ry out su*    
con/ruction1 &  7,c7 = any exp5se relat+
 to a pr9cipal resid5ce ( ! acc\nt      
b5efici>y acquir$ or con/ruct$ :5 su*   
acc\nt b5efici>y 0 an eligible          
individual dur+ ! #c-ye> p]iod beg9n+ on
 ! date-- 7i7 ( ! acquisition ( su*     
pr9cipal resid5ce1 or  7ii7 9 ! case ( a

 pr9cipal resid5ce con/ruct$ by !       
taxpay]1 ! date on :i* su* con/ruction 0
 complet$4  7#d7 ,acc\nt b5efici>y ,!   
t]m acc\nt b5efici>y means ! individual 
on ^: behalf ! fir/-"t homebuy] 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 fir/-"t homebuy] sav+s    
acc\nt to ! acc\nt b5efici>y to ! ext5t 
t-- 7,a7 ! 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/ribution1 &  7,b7 su*     
acc\nt b5efici>y did n receive 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 ( subsection 7d77#b77;,b7 dur+ 
! #a-ye> p]iod end+ on ! date ( su*     
receipt4  7c7 ,contribution limit ,!    
aggregate am\nt ( contributions = any   
cal5d> ye> to all fir/-"t homebuy] sav+s
 acc\nts ma9ta9$ = ! b5efit ( an        
individual %all n exce$ #aj1jjj4  7d7   
,limitation on modifi$ adju/$ gross     
income ,9 ! case ( a taxpay] ^: adju/$  
gross income = ! taxable ye> exce$s     
#bjj1jjj 7twice su* am\nt 9 ! case ( a  
jo9t return71 no d$uction %all be all[$ 
"u subsection 7a7 = su* taxable ye>4    
7e7 ,treatm5t ( di/ributions  7#a7      
,am\nts us$ = qualifi$ homebuy] exp5ses 
,any am\nt paid or di/ribut$ out ( a    
fir/-"t homebuy] sav+s acc\nt :i* is us$
 exclusively to pay qualifi$ homebuy]   
exp5ses %all n be includible 9 gross    
income4  7#b7 ,inclusion ( am\nts n us$ 
= qualifi$ homebuy] exp5ses ,any am\nt  
paid or di/ribut$ out ( a fir/-"t       
homebuy] sav+s acc\nt :i* is n-- 7,a7   

us$ exclusively to pay ! qualifi$       
homebuy] exp5ses ( ! acc\nt b5efici>y1  
7,b7 a rollov] contribution1 or  7,c7 a 
transf] made "u subsection 7g71  %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 ,excess
 contributions returns 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$4  7,b7 ,excess contribution     
def9$ ,= 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  7f7 ,tax  
treatm5t ( acc\nt ,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  7g7 ,treatm5t ( acc\nt
 aft] acquisition ( resid5tial prop]ty  
7#a7 ,9 g5]al ,9 ! case ( an acc\nt     
b5efici>y :o acquires 7or ^: sp\se      
acquires7 a pres5t own]%ip int]e/ 9 a   
resid5tial prop]ty su* individual may   
transf] am\nts 9 ! fir/-"t homebuy]     
sav+s acc\nt ( su* individual or su*    

individual's sp\se to an individual     
retirem5t acc\nt 7z def9$ 9 section     
#djh7;a77 ( su* individual or su*       
individual's sp\se dur+ ! #ahj day p]iod
 beg9n+ on ! date on :i* ! #c-ye> p]iod 
describ$ 9 subsection 7b77#c77;,c7 ends 
) respect to su* acquisition4  7#b7     
,t]m9ation ,a fir/-"t homebuy] sav+s    
acc\nt %all cease to be a fir/-"t       
homebuy] sav+s acc\nt on ! fir/ day aft]
 ! #ahj day p]iod describ$ 9 p>agraph   
7#a7 & am\nts 9 su* acc\nt %all be      
treat$ z di/ribut$ to ! acc\nt          
b5efici>y4  4  7b7 ,paym5t to fir/-,"t  
homebuy] sav+s acc\nt n treat$ z wages  
,section #caba7;a7 ( su* ,code is       
am5d$--  7#a7 9 p>agraph 7#bb77;,b71 by 
/rik+ 2 or & ins]t+ a comma1  7#b7 9    
p>agraph 7#bc71 by /rik+ section section
 #aci;,b7a74 & ins]t+ section           
#aci;,b7a71 or1 &  7#c7 by ins]t+ aft]  
p>agraph 7#bc7 ! foll[+ new p>agraph3   
7#bd7 any am\nt :i* is excludible f     
gross income ( ! employee "u section    
#bbe;,a7a74  4  7c7 ,tax on excess      

contributions  7#a7 ,9 g5]al ,section   
#digc7;a7 ( su* ,code is am5d$-- 7,a7 9 
p>agraph 7#e71 by /rik+ or1  7,b7 9     
p>agraph 7#f71 by ins]t+ or aft] !      
comma1 &  7,c7 by ins]t+ aft] p>agraph  
7#f7 ! foll[+ new p>agraph3  7#g7 a     
fir/-"t homebuy] sav+s acc\nt 7)9 !     
mean+ ( section #bbe;,a7b77#a771  4     
7#b7 ,def9ition ( excess contribution 9 
#digc ,section #digc ( su* ,code is     
am5d$ by add+ at ! end ! foll[+ new     
subsection3  7i7  ,excess contributions 
to fir/-,"t homebuy] sav+s acc\nt  ,=   
purposes ( ?is section1 9 ! case ( a    
fir/-"t homebuy] 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$s ! contribution limit  
"u #bbe;,a7c77#a74  4  7d7 ,cl]ical     
am5dm5t ,! table ( sections = "p ,,vii (
 sub*apt] ,b ( *apt] #a ( subtitle ,a ( 
su* ,code is am5d$ by ins]t+ aft] ! item
 relat+ to section #bbe ! foll[+ new    
item3  ,sec4 #bbe;,a4 ,fir/-"t homebuy] 

sav+s acc\nt4  4  7e7 ,effective date ,!
 am5dm5ts made by ?is section %all apply
 to taxable ye>s beg9n+ aft] ! date ( ! 
enactm5t ( ?is ,act4