,,ii #aaith ,,congress #b;d ,session ,s4 #ebbg ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,august #d1 #bjbf,mr4 ,husted 7for himself and ,mr4 ,bennet7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to allow certain distributions from long-term qualified tuition programs for first home purchases1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,first-,time ,home ,buyer ,empowerment ,act4 #b4 ,special rule for certain distributions from long-term qualified tuition programs for first home purchases 7a7 ,in general ,section #ebi7;c77#c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,f7 ,special rule for certain distributions from long-term qualified tuition programs for first home purchases 7i7 ,in general ,in the case of a distribution from an account of a designated beneficiary which has been maintained under #a or more qualified tuition programs for the #ae-year period ending on the date of such distribution1 subparagraph 7,a7 shall not apply to so much of the portion of such distribution which-- 7,i7 does not exceed the aggregate amount contributed to the program 7and earnings attributable thereto7 before the #e-year period ending on the date of the distribution1 and 7,,ii7 is used1 within #fj days of such distribution1 for the purchase of a principal residence of a first-time homebuyer who is the designated beneficiary with respect to such account4 7ii7 ,limitations 7,i7 ,in general ,this subparagraph shall apply only to a distribution from an account of the original designated beneficiary of the account1 or any successor designated beneficiary who is of the same or a lower generation than the original designated beneficiary4 7,,ii7 ,aggregate limitation ,this subparagraph shall not apply to any distribution described in clause 7i7 to the extent that the aggregate amount of such distributions with respect to the designated beneficiary for the taxable year and all prior taxable years exceeds an amount equal to #ce1jjj1 reduced by the aggregate amount of distributions to which subparagraph 7,e7 applies with respect to such designated beneficiary for such taxable year and all prior taxable years4 7iii7 ,special rule where delay in acquisition ,if any distribution from a qualified tuition program of a designated beneficiary fails to meet the requirements of subparagraph 7,a7 solely by reason of a delay or cancellation of the purchase or construction of the residence1 the amount of the distribution may be contributed to a qualified tuition program or ,,able account of such beneficiary1 as provided in subclauses 7,i7 and 7,,iii71 respectively1 of subparagraph 7,c77i71 determined by substituting #abj days for #fj days in such subparagraph1 except that-- 7,i7 subparagraph 7,c77iii7 shall not be applied to such contribution1 and 7,,ii7 such amount shall not be taken into account in determining whether subparagraph 7,c77iii7 applies to any other amount4 7iv7 ,recapture of tax benefit 7,i7 ,in general ,if subparagraph 7,a7 does not apply to a distribution by reason of this subparagraph and a qualifying event occurs before the close of the #e-year period beginning on the date of the purchase of the principal residence with respect to which such distribution was used1 the designated beneficiary's tax for the taxable year in which such qualifying event occurs shall be increased by an amount1 determined under regulations1 equal to the tax which 7but for this subparagraph7 would have been imposed with respect to such distribution1 plus interest for the deferral period4 ,the amount of any increase determined under the preceding sentence shall be reduced 7but not below zero7 by #bj percent for each full year occurring during the period beginning on the date of such purchase and ending on the date of such qualifying event4 7,,ii7 ,qualifying event ,for purposes of this clause1 the term qualifying event means1 with respect to a distribution to which subparagraph 7,a7 does not apply by reason of this subparagraph1 the disposition of the principal residence which the designated beneficiary purchased using such distribution1 or the cessation of use of such residence as the principal residence of the designated beneficiary 7and1 if married1 such designated beneficiary's spouse74 7,,iii7 ,deferral period ,for purposes of this clause1 the term deferral period means1 with respect to a distribution to which subparagraph 7,a7 does not apply by reason of this subparagraph1 the period beginning with the taxable year in which 7without regard to this subparagraph7 the distribution would have been includible in gross income and ending with the taxable year in which the qualifying event described in subclause 7,i7 occurs4 7,,iv7 ,exceptions ,rules similar to the rules of subparagraphs 7,a71 7,b71 7,c71 and 7,e7 of section #cf7;f77#d7 shall apply for purposes of this subparagraph4 7v7 ,definitions ,for purposes of this subparagraph1 the terms purchase1 principal residence1 and first-time homebuyer have the meaning given such terms in section #cf7;c74 4 7b7 ,coordination with aggregate limitation on special rollovers to ,roth ,i,r,as ,section #ebi7;c77#c77;,e77ii77,,ii7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7,,ii7 ,aggregate limitation ,this subparagraph shall not apply to any distribution described in clause 7i7 to the extent that the aggregate amount of such distributions with respect to the designated beneficiary for the taxable year and all prior taxable years exceeds an amount equal to #ce1jjj1 reduced by the aggregate amount of distributions to which subparagraph 7,f7 applies with respect to such designated beneficiary for such taxable year and all prior taxable years4 4 7c7 ,effective date ,the amendments made by this section shall apply to distributions made in taxable years beginning after the date of the enactment of this ,act4