,,ii  #aai? ,,congress  #b;d ,session   
,s4 #ebbg  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,augu/ #d1 #bjbf,mr4   
,hu/$ 7= himself & ,mr4 ,b5net7         
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to all[ c]ta9     
di/ributions f long-t]m qualifi$ tuition
 programs = fir/ home pur*ases1 & = o!r 
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,fir/-,"t ,home ,buy]      
,emp[]m5t ,act4  #b4 ,special rule =    
c]ta9 di/ributions f long-t]m qualifi$  
tuition programs = fir/ home pur*ases   
7a7 ,9 g5]al ,section #ebi7;c77#c7 ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new           
subp>agraph3  7,f7 ,special rule = c]ta9
 di/ributions f long-t]m qualifi$       
tuition programs = fir/ home pur*ases   
7i7 ,9 g5]al ,9 ! case ( a di/ribution f
 an acc\nt ( a designat$ b5efici>y :i*  
has be5 ma9ta9$ "u #a or m qualifi$     
tuition programs = ! #ae-ye> p]iod end+ 

on ! date ( su* di/ribution1 subp>agraph
 7,a7 %all n apply to s mu* ( ! portion 
( su* di/ribution :i*-- 7,i7 does n     
exce$ ! aggregate am\nt contribut$ to ! 
program 7& e>n+s attributable !reto7    
be=e ! #e-ye> p]iod end+ on ! date ( !  
di/ribution1 &  7,,ii7 is us$1 )9 #fj   
days ( su* di/ribution1 = ! pur*ase ( a 
pr9cipal resid5ce ( a fir/-"t homebuy]  
:o is ! designat$ b5efici>y ) respect to
 su* acc\nt4  7ii7 ,limitations  7,i7 ,9
 g5]al ,?is subp>agraph %all apply only 
to a di/ribution f an acc\nt ( ! orig9al
 designat$ b5efici>y ( ! acc\nt1 or any 
successor designat$ b5efici>y :o is ( ! 
same or a l[] g5]ation ?an ! orig9al    
designat$ b5efici>y4  7,,ii7 ,aggregate 
limitation ,?is subp>agraph %all n apply
 to any di/ribution describ$ 9 clause   
7i7 to ! ext5t t ! aggregate am\nt ( su*
 di/ributions ) respect to ! designat$  
b5efici>y = ! taxable ye> & all prior   
taxable ye>s exce$s an am\nt equal to   
#ce1jjj1 r$uc$ by ! aggregate am\nt (   
di/ributions to :i* subp>agraph 7,e7    

applies ) respect to su* designat$      
b5efici>y = su* taxable ye> & all prior 
taxable ye>s4  7iii7 ,special rule :]e  
delay 9 acquisition ,if any di/ribution 
f a qualifi$ tuition program ( a        
designat$ b5efici>y fails to meet !     
requirem5ts ( subp>agraph 7,a7 solely by
 reason ( a delay or cancellation ( !   
pur*ase or con/ruction ( ! resid5ce1 !  
am\nt ( ! di/ribution may be contribut$ 
to a qualifi$ tuition program or ,,able 
acc\nt ( su* b5efici>y1 z provid$ 9     
subclauses 7,i7 & 7,,iii71 respectively1
 ( subp>agraph 7,c77i71 det]m9$ by      
sub/itut+ #abj days = #fj days 9 su*    
subp>agraph1 except t-- 7,i7 subp>agraph
 7,c77iii7 %all n be appli$ to su*      
contribution1 &  7,,ii7 su* am\nt %all n
 be tak5 into acc\nt 9 det]m9+ :e!r     
subp>agraph 7,c77iii7 applies to any o!r
 am\nt4  7iv7 ,recapture ( tax b5efit   
7,i7 ,9 g5]al ,if subp>agraph 7,a7 does 
n apply to a di/ribution by reason ( ?is
 subp>agraph & a qualify+ ev5t occurs   
be=e ! close ( ! #e-ye> p]iod beg9n+ on 

! date ( ! pur*ase ( ! pr9cipal resid5ce
 ) respect to :i* su* di/ribution 0 us$1
 ! designat$ b5efici>y's tax = ! taxable
 ye> 9 :i* su* qualify+ ev5t occurs %all
 be increas$ by an am\nt1 det]m9$ "u    
regulations1 equal to ! tax :i* 7b = ?is
 subp>agraph7 w\ld h be5 impos$ )       
respect to su* di/ribution1 plus int]e/ 
= ! def]ral p]iod4 ,! am\nt ( any       
increase det]m9$ "u ! prec$+ s5t5ce %all
 be r$uc$ 7b n bel[ z]o7 by #bj p]c5t = 
ea* full ye> occurr+ dur+ ! p]iod beg9n+
 on ! date ( su* pur*ase & end+ on !    
date ( su* qualify+ ev5t4  7,,ii7       
,qualify+ ev5t ,= purposes ( ?is clause1
 ! t]m qualify+ ev5t means1 ) respect to
 a di/ribution to :i* subp>agraph 7,a7  
does n apply by reason ( ?is            
subp>agraph1 ! disposition ( ! pr9cipal 
resid5ce :i* ! designat$ b5efici>y      
pur*as$ us+ su* di/ribution1 or !       
cessation ( use ( su* resid5ce z !      
pr9cipal resid5ce ( ! designat$         
b5efici>y 7&1 if m>ri$1 su* designat$   
b5efici>y's sp\se74  7,,iii7 ,def]ral   

p]iod ,= purposes ( ?is clause1 ! t]m   
def]ral p]iod means1 ) respect to a     
di/ribution to :i* subp>agraph 7,a7 does
 n apply by reason ( ?is subp>agraph1 ! 
p]iod beg9n+ ) ! taxable ye> 9 :i* 7)\t 
reg>d to ?is subp>agraph7 ! di/ribution 
w\ld h be5 includible 9 gross income &  
end+ ) ! taxable ye> 9 :i* ! qualify+   
ev5t describ$ 9 subclause 7,i7 occurs4  
7,,iv7 ,exceptions ,rules simil> to !   
rules ( subp>agraphs 7,a71 7,b71 7,c71 &
 7,e7 ( section #cf7;f77#d7 %all apply =
 purposes ( ?is subp>agraph4  7v7       
,def9itions ,= purposes ( ?is           
subp>agraph1 ! t]ms pur*ase1 pr9cipal   
resid5ce1 & fir/-"t homebuy] h ! mean+  
giv5 su* t]ms 9 section #cf7;c74  4  7b7
 ,coord9ation ) aggregate limitation on 
special rollov]s to ,ro? ,i,r,as        
,section #ebi7;c77#c77;,e77ii77,,ii7 ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 to read z foll[s3  7,,ii7 ,aggregate   
limitation ,?is subp>agraph %all n apply
 to any di/ribution describ$ 9 clause   
7i7 to ! ext5t t ! aggregate am\nt ( su*

 di/ributions ) respect to ! designat$  
b5efici>y = ! taxable ye> & all prior   
taxable ye>s exce$s an am\nt equal to   
#ce1jjj1 r$uc$ by ! aggregate am\nt (   
di/ributions to :i* subp>agraph 7,f7    
applies ) respect to su* designat$      
b5efici>y = su* taxable ye> & all prior 
taxable ye>s4  4  7c7 ,effective date ,!
 am5dm5ts made by ?is section %all apply
 to di/ributions made 9 taxable ye>s    
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4