I 
119TH CONGRESS 
2D SESSION 
H. R. 7402 
To amend the Internal Revenue Code of 1986 to allow distributions from 
qualified tuition programs for first home purchases, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 5, 2026 
Mr. MOORE of North Carolina 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 dis-
tributions from qualified tuition programs for first home 
purchases, and for other purposes. 
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 ‘‘Unlocking Homeown-
ership Act’’. 
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SEC. 2. ALLOWANCE OF DISTRIBUTIONS FROM QUALIFIED 
TUITION PROGRAMS FOR FIRST HOME PUR-
CHASES. 
(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) DISTRIBUTIONS
FOR
FIRST
HOME 
PURCHASES.— 
‘‘(i) IN GENERAL.—Subparagraph (A) 
shall not apply to any qualified first-time 
homebuyer distribution. 
‘‘(ii) QUALIFIED
FIRST-TIME
HOME-
BUYER
DISTRIBUTION.—For purposes of 
this subparagraph, the term ‘qualified 
first-time homebuyer distribution’ means 
any distribution from a qualified tuition 
program of a designated beneficiary which 
is received by such beneficiary to the ex-
tent such distribution is used by the bene-
ficiary before the close of the 120th day 
after the day on which such distribution is 
received to pay qualified acquisition costs 
with respect to a principal residence of a 
first-time homebuyer who is such bene-
ficiary, the spouse of such beneficiary, or 
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any child, grandchild, or ancestor of such 
beneficiary or the beneficiary’s spouse. 
‘‘(iii) 
QUALIFIED
ACQUISITION 
COSTS.—For purposes of this subpara-
graph, the term ‘qualified acquisition costs’ 
has the meaning given that term in section 
72(t)(8). 
‘‘(iv) 
FIRST-TIME
HOMEBUYER; 
OTHER
DEFINITIONS.—For purposes of 
this subparagraph— 
‘‘(I) FIRST-TIME HOMEBUYER.— 
The 
term 
‘first-time 
homebuyer’ 
means any individual if such indi-
vidual (and if married, such individ-
ual’s spouse) had no present owner-
ship interest in a principal residence 
during the 2-year period ending on 
the date of acquisition of the principal 
residence to which clause (ii) applies. 
‘‘(II) PRINCIPAL
RESIDENCE.— 
The term ‘principal residence’ has the 
same meaning as when used in section 
121. 
‘‘(III) DATE OF ACQUISITION.— 
The term ‘date of acquisition’ means 
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whether subparagraph (C)(iii) applies 
to any other amount. 
‘‘(vi) RECONTRIBUTIONS.— 
‘‘(I) GENERAL RULE.—Any des-
ignated beneficiary who received a 
qualified distribution may, during the 
applicable period, make one or more 
contributions in an aggregate amount 
not to exceed the amount of such 
qualified distribution to any qualified 
tuition program or ABLE account of 
such beneficiary to which a transfer of 
such distribution could be made under 
subclause (I) or (III) of subparagraph 
(C)(i). 
‘‘(II) TREATMENT
OF
REPAY-
MENTS.—For purposes of this para-
graph, if a contribution is made pur-
suant to subclause (I) with respect to 
a qualified distribution, then the des-
ignated beneficiary shall, to the extent 
of the amount of the contribution, be 
treated as having received the quali-
fied distribution as a transfer under 
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subparagraph (C)(i) within 60 days of 
the distribution. 
‘‘(III) 
QUALIFIED
DISTRIBU-
TION.—For purposes of this clause, 
the term ‘qualified distribution’ means 
any distribution which is a qualified 
first-time 
homebuyer 
distribution, 
which was to be used to purchase or 
construct a principal residence in a 
qualified disaster area but was not so 
used on account of the qualified dis-
aster with respect to such area, and 
which was received during the period 
beginning on the date which is 180 
days before the first day of the inci-
dent period of such qualified disaster 
and ending on the date which is 30 
days after the last day of such inci-
dent period. 
‘‘(IV) APPLICABLE PERIOD.—For 
purposes of this clause, the term ‘ap-
plicable period’ means, in the case of 
a principal residence in a qualified 
disaster area with respect to any 
qualified disaster, the period begin-
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ning on the first day of the incident 
period of such qualified disaster and 
ending on the date which is 180 days 
after the applicable date with respect 
to such disaster. 
‘‘(V) QUALIFIED DISASTER.—For 
purposes of this clause, the term 
‘qualified disaster’ means any disaster 
with respect to which a major disaster 
has been declared by the President 
under section 401 of the Robert T. 
Stafford Disaster Relief and Emer-
gency Assistance Act after the date of 
the enactment of this clause. 
‘‘(VI) 
QUALIFIED
DISASTER 
AREA.—For purposes of this clause, 
the term ‘qualified disaster area’ 
means, with respect to any qualified 
disaster, the area with respect to 
which the major disaster was declared 
under the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act. 
‘‘(VII) INCIDENT
PERIOD.—For 
purposes of this clause, the term ‘inci-
dent period’ means, with respect to 
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any qualified disaster, the period spec-
ified by the Federal Emergency Man-
agement Agency as the period during 
which such disaster occurred. 
‘‘(VIII) APPLICABLE DATE.—For 
purposes of this clause, the term ‘ap-
plicable date’ means the latest of the 
date of the enactment of this subpara-
graph, the first day of the incident pe-
riod with respect to the qualified dis-
aster, or the date of the disaster dec-
laration with respect to the qualified 
disaster.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to distributions made after the 
date of the enactment of this Act. 
Æ 
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