[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7468 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 7468
To amend the Internal Revenue Code of 1986 to allow certain
distributions from long-term qualified tuition programs for first home
purchases, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 10, 2026
Mr. Mann (for himself, Mr. Correa, Mr. Alford, Mr. Barrett, Mr. Moylan,
Mr. McGuire, Mr. Fulcher, Ms. Davids of Kansas, Ms. Mace, and Mr. Bost)
introduced the following bill; which was referred to the Committee on
Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow certain
distributions from long-term qualified tuition programs for first home
purchases, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``First-Time Home Buyer Empowerment
Act''.
SEC. 2. SPECIAL RULE FOR CERTAIN DISTRIBUTIONS FROM LONG-TERM QUALIFIED
TUITION PROGRAMS FOR FIRST HOME PURCHASES.
(a) In General.--Section 529(c)(3) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(F) Special rule for certain distributions from
long-term qualified tuition programs for first home
purchases.--
``(i) In general.--In the case of a
distribution from a qualified tuition program
of a designated beneficiary which has been
maintained for the 15-year period ending on the
date of such distribution, subparagraph (A)
shall not apply to so much of the portion of
such distribution which--
``(I) does not exceed the aggregate
amount contributed to the program (and
earnings attributable thereto) before
the 5-year period ending on the date of
the distribution, and
``(II) is used, within 60 days of
such distribution, for the purchase of
a principal residence of a first-time
homebuyer who is such designated
beneficiary.
``(ii) Aggregate limitation.--This
subparagraph shall not apply to any
distribution described in clause (i) 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
$35,000, reduced by the aggregate amount of
distributions to which subparagraph (E) applies
with respect to such designated beneficiary for
such taxable year and all prior taxable years.
``(iii) 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 (A) solely be reason of a delay or
cancellation of the purchase or construction of
the residence, the amount of the distribution
may be contributed to a qualified tuition
program or ABLE account of such beneficiary, as
provided in subclauses (I) and (III),
respectively, of subparagraph (C)(i),
determined by substituting `120 days' for `60
days' in such subparagraph, except that--
``(I) subparagraph (C)(iii) shall
not be applied to such contribution,
and
``(II) such amount shall not be
taken into account in determining
whether subparagraph (C)(iii) applies
to any other amount.
``(iv) Recapture of tax benefit.--
``(I) In general.--If subparagraph
(A) does not apply to a distribution by
reason of this subparagraph and a
qualifying event occurs before the
close of the 5-year period beginning on
the date of the purchase of the
principal residence with respect to
which such distribution was used, the
designated beneficiary's tax for the
taxable year in which such qualifying
event occurs shall be increased by an
amount, determined under regulations,
equal to the tax which (but for this
subparagraph) would have been imposed,
plus interest for the deferral period.
The amount of any increase determined
under the preceding sentence shall be
reduced (but not below zero) by 20
percent for each full year occurring
during the period beginning on the date
of such purchase and ending on the date
of such qualifying event.
``(II) Qualifying event.--For
purposes of this clause, the term
`qualifying event' means, with respect
to a distribution to which subparagraph
(A) does not apply by reason of this
subparagraph, the disposition of the
principal residence which the
designated beneficiary purchased using
such distribution, or the cessation of
such residence as the principal
residence of the designated beneficiary
(and, if married, such designated
beneficiary's spouse).
``(III) Deferral period.--For
purposes of this clause, the term
`deferral period' means, with respect
to a distribution to which subparagraph
(A) does not apply by reason of this
subparagraph, the period beginning with
the taxable year in which (without
regard to this subparagraph) the
distribution would have been includible
in gross income and ending with the
taxable year in which the qualifying
event described in subclause (I)
occurs.
``(IV) Exceptions.--Rules similar
to the rules of subparagraphs (A), (B),
(C), and (E) of section 36(f)(4) shall
apply for purposes of this
subparagraph.
``(v) Definitions.--For purposes of this
subparagraph, the terms `purchase', `principal
residence', and `first-time homebuyer' have the
meaning given such terms in section 36(c).''.
(b) Coordination With Aggregate Limitation on Special Rollovers to
Roth IRAs.--Section 529(c)(3)(E)(ii)(II) of such Code is amended to
read as follows:
``(II) Aggregate limitation.--This
subparagraph shall not apply to any
distribution described in clause (i) 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 $35,000,
reduced by the aggregate amount of
distributions to which subparagraph (F)
applies with respect to such designated
beneficiary for such taxable year and
all prior taxable years.''.
(c) 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 Act.
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