I 
116TH CONGRESS 
2D SESSION 
H. R. 8176 
To amend the Internal Revenue Code of 1986 to establish qualified down 
payment savings programs. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 4, 2020 
Mr. MEEKS (for himself and Mr. GREEN of Texas) 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 establish 
qualified down payment savings programs. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘American Dream 
Down Payment Act of 2020’’. 
SEC. 2. QUALIFIED DOWN PAYMENT SAVINGS PROGRAMS. 
(a) IN GENERAL.—Part VIII of subchapter F of 
chapter 1 of the Internal Revenue Code of 1986 is amend-
ed by inserting after section 529A the following new sec-
tion: 
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‘‘SEC. 529B. QUALIFIED DOWN PAYMENT SAVINGS PRO-
GRAMS. 
‘‘(a) IN GENERAL.—A qualified down payment sav-
ings program shall be exempt from taxation under this 
subtitle. Notwithstanding the preceding sentence, such 
program shall be subject to the taxes imposed by section 
511 (relating to imposition of tax on unrelated business 
income of charitable organizations). 
‘‘(b) QUALIFIED DOWN PAYMENT SAVINGS PRO-
GRAM.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified down 
payment savings program’ means a program estab-
lished and maintained by a State or agency or in-
strumentality thereof— 
‘‘(A) under which a person may make con-
tributions to a qualified down payment savings 
account which is established for the purpose of 
meeting qualified down payment expenses of the 
designated beneficiary of the account, and 
‘‘(B) which meets the other requirements 
of this subsection. 
‘‘(2) CASH CONTRIBUTIONS.— 
‘‘(A) IN GENERAL.—A program shall not 
be treated as a qualified down payment savings 
program unless it provides that no contribution 
will be accepted— 
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‘‘(i) unless it is in cash, and 
‘‘(ii) except in the case of contribu-
tions under subsection (c)(3)(C), if such 
contribution to a qualified down payment 
savings account would result in the balance 
of such account exceeding $102,080. 
‘‘(B) INFLATION ADJUSTMENT.— 
‘‘(i) IN GENERAL.—In the case of any 
calendar year beginning after 2020, the 
$102,080 amount in subparagraph (A)(ii) 
shall be increased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under clause (ii). 
‘‘(ii) COST-OF-LIVING ADJUSTMENT.— 
For purposes of clause (i), the cost-of-liv-
ing adjustment for any calendar year is the 
percentage (if any) by which— 
‘‘(I) the CPI for the preceding 
calendar year, exceeds 
‘‘(II) the CPI for calendar year 
2019. 
For purposes of this clause, the CPI for 
any calendar year shall be determined in 
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the same manner as it is determined under 
section 1(f)(4). 
‘‘(iii) ROUNDING.—If any increase de-
termined under clause (i) is not a multiple 
of $10, such increase shall be rounded to 
the nearest multiple of $10. 
‘‘(3) SEPARATE ACCOUNTING.—A program shall 
not be treated as a qualified down payment savings 
program unless it provides separate accounting for 
each designated beneficiary. 
‘‘(4) INVESTMENT
DIRECTION.—A program 
shall not be treated as a qualified down payment 
savings program unless it provides that— 
‘‘(A) except as provided in subparagraph 
(B), any contributor to, or designated bene-
ficiary under, such program may, directly or in-
directly, direct the investment of any contribu-
tions to the program (or any earnings thereon) 
no more than 2 times in any calendar year and 
subject to the regulations established pursuant 
to this section, and 
‘‘(B) in the event that an account’s hold-
ings meet the value established under para-
graph (2)(B), the account funds will be trans-
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ferred to investments in United States Treasury 
securities. 
‘‘(5) NO PLEDGING OF INTEREST AS A SECU-
RITY.—A program shall not be treated as a qualified 
down payment savings program if it allows any in-
terest in the program or any portion thereof to be 
used as security for a loan. 
‘‘(6) COMPLIANCE
WITH
REGULATIONS.—A 
program shall not be treated as a qualified down 
payment savings program unless it complies with all 
regulations issued pursuant to subsection (f). 
‘‘(c) TAX
TREATMENT
OF
DESIGNATED
BENE-
FICIARIES AND CONTRIBUTORS.— 
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, no amount shall be includ-
ible in gross income of— 
‘‘(A) a designated beneficiary under a 
qualified down payment savings program, or 
‘‘(B) a contributor to such program on be-
half of a designated beneficiary, 
with respect to any distribution or earnings under 
such program. 
‘‘(2) GIFT
TAX
TREATMENT
OF
CONTRIBU-
TIONS.—For purposes of chapters 12 and 13— 
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