I 
115TH CONGRESS 
1ST SESSION H. R. 2802 
To amend the Internal Revenue Code of 1986 to provide a tax-preferred 
savings account for first-time homebuyers. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 7, 2017 
Mr. COFFMAN (for himself, Mr. SEAN PATRICK MALONEY of New York, and 
Mrs. COMSTOCK) 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 provide 
a tax-preferred savings account for first-time homebuyers. 
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 ‘‘First-Time Homebuyer 
Savings Account Act of 2017’’. 
SEC. 2. FIRST-TIME HOMEBUYER ACCOUNT. 
(a) IN GENERAL.—Subchapter F of chapter 1 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new part: 
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‘‘PART IX—FIRST-TIME HOMEBUYER ACCOUNTS 
‘‘Sec. 530A. First-time homebuyer account. 
‘‘SEC. 530A. FIRST-TIME HOMEBUYER ACCOUNT. 
‘‘(a) IN GENERAL.—A first-time homebuyer account 
shall be exempt from taxation under this subtitle. Not-
withstanding the preceding sentence, the first-time home-
buyer account shall be subject to the taxes imposed by 
section 511 (relating to imposition of tax on unrelated 
business income of charitable organizations). 
‘‘(b) FIRST-TIME HOMEBUYER ACCOUNT.—The term 
‘first-time homebuyer account’ means a trust created or 
organized in the United States exclusively for the purpose 
of paying the qualified principal residence purchase ex-
penditures of an individual who is the designated bene-
ficiary of the trust (and designated as a first-time home-
buyer account at the time created or organized), but only 
if the written governing instrument creating the trust 
meets the following requirements: 
‘‘(1) No contribution will be accepted— 
‘‘(A) unless it is in cash, 
‘‘(B) except in the case of a rollover con-
tribution, if such contribution would result in 
aggregate contributions— 
‘‘(i) for the taxable year exceeding 
$14,000 (200 percent of such amount in 
effect for the taxable year in the case of in-
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dividuals who are married, own a first-time 
homebuyer account jointly, and file a joint 
return for the taxable year), 
‘‘(ii) for all taxable years exceeding 
$50,000, and 
‘‘(C) if the fair market value of the ac-
count to exceeds, or to the extent such contribu-
tion would result in the fair market value of the 
account exceeding, $150,000. 
‘‘(2) The trustee is a bank (as defined in sec-
tion 408(n)) or another person who demonstrates to 
the satisfaction of the Secretary that the manner in 
which that person will administer the trust will be 
consistent with the requirements of this section or 
who has so demonstrated with respect to any indi-
vidual retirement plan. 
‘‘(3) No part of the trust assets will be invested 
in life insurance contracts. 
‘‘(4) The assets of the trust shall not be com-
mingled with other property except in a common 
trust fund or common investment fund. 
‘‘(c) QUALIFIED PRINCIPAL RESIDENCE PURCHASE 
EXPENDITURES.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified prin-
cipal residence purchase expenditures’ means, with 
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respect to a designated beneficiary who is a first- 
time homebuyer— 
‘‘(A) any amount paid toward the purchase 
price of a principal residence of the beneficiary, 
‘‘(B) any amount required to be paid to 
settle the purchase of such residence, and 
‘‘(C) any amount required to be paid by 
the beneficiary to obtain acquisition indebted-
ness with respect to such residence. 
‘‘(2) PURCHASE
PRICE.—The term ‘purchase 
price’ means the adjusted basis of the residence on 
the date such residence is purchased. 
‘‘(d) TAX TREATMENT.— 
‘‘(1) DISTRIBUTIONS.— 
‘‘(A) IN GENERAL.—If distributions from a 
first-time homebuyer account for the taxable 
year do not exceed the qualified principal resi-
dence purchase expenditures of the designated 
beneficiary for the taxable year, no amount 
shall be includible in gross income. 
‘‘(B) DISTRIBUTIONS IN EXCESS OF EX-
PENDITURES.—If such distributions exceed 
such expenditures for the taxable year, such 
distributions shall be includible in the gross in-
come of the distributee in the manner as pro-
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vided in section 72 (to the extent not excluded 
from gross income under any other provision of 
this chapter), reduced by an amount which 
bears the same ratio to the amount otherwise so 
includible as such expenses bear to such dis-
tributions. 
‘‘(C) ADDITIONAL
TAX
FOR
DISTRIBU-
TIONS NOT USED FOR FIRST-TIME HOMEBUYER 
PURPOSES.— 
‘‘(i) IN GENERAL.—The tax imposed 
by this chapter for any taxable year on any 
taxpayer who receives a payment or dis-
tribution from a first-time homebuyer ac-
count which is includible in gross income 
shall be increased by the applicable per-
centage of the amount which is so includ-
ible. 
‘‘(ii) APPLICABLE PERCENTAGE.—For 
purposes of clause (i), the applicable per-
centage is— 
‘‘(I) in the case of a payment or 
distribution made not later than 10 
years after the date of the first con-
tribution to the account, 5 percent, 
and 
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plied to any prior payment or distribution dur-
ing the 12-month period ending on the date of 
the payment or distribution. 
‘‘(E) 
CHANGE
IN
BENEFICIARY.—Any 
change in the beneficiary of a first-time home-
buyer account shall not be treated as a distribu-
tion for purposes of subparagraph (A). 
‘‘(F) 
DISALLOWANCE
OF
EXCLUDED 
AMOUNTS AS DEDUCTION, CREDIT, OR EXCLU-
SION.—No deduction, credit, or exclusion shall 
be allowed to the taxpayer under any other sec-
tion for any qualified principal residence pur-
chase expenditures to the extent taken into ac-
count in determining the amount of the exclu-
sion under this paragraph. 
‘‘(2) ESTATE AND GIFT TAX WITH RESPECT TO 
THE ACCOUNT.—Rules similar to the rules of para-
graphs (2), (4), and (5) of section 529(c) shall apply 
for purposes of this section. 
‘‘(3) TAX TREATMENT AFTER DEATH OF AC-
COUNT HOLDER.— 
‘‘(A) JOINTLY HELD ACCOUNTS.—In the 
case of a first-time homebuyer account which 
was jointly held by spouses, if the surviving 
spouse acquires the deceased spouse’s interest 
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in a first-time homebuyer account by reason of 
being the designated beneficiary of such ac-
count at the death, such account shall be treat-
ed as if the spouse were the sole account holder. 
‘‘(B) OTHER CASES.— 
‘‘(i) IN GENERAL.—If, by reason of 
the death of the account holder, any per-
son acquires the account holder’s interest 
in an first-time homebuyer account in a 
case to which subparagraph (A) does not 
apply— 
‘‘(I) such account shall cease to 
be a first-time homebuyer account as 
of the date of death, and 
‘‘(II) an amount equal to the fair 
market value of the assets in such ac-
count on such date shall be includible 
if such person is not the estate of 
such holder, in such person’s gross in-
come for the taxable year which in-
cludes such date, or if such person is 
the estate of such holder, in such 
holder’s gross income for the last tax-
able year of such holder. 
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‘‘(ii) 
DEDUCTION
FOR
ESTATE 
TAXES.—An appropriate deduction shall be 
allowed under section 691(c) to any person 
(other than the decedent or the decedent’s 
spouse) with respect to amounts included 
in gross income under clause (i). 
‘‘(e) OTHER DEFINITIONS AND SPECIAL RULES.— 
For purposes of this section— 
‘‘(1) FIRST-TIME HOMEBUYER.— 
‘‘(A) IN GENERAL.—The term ‘first-time 
homebuyer’ means any individual if such indi-
vidual (and if married, such individual’s spouse) 
has had no present ownership interest in a prin-
cipal residence. 
‘‘(B) SPECIAL RULE FOR DIVORCED INDI-
VIDUALS.—Any individual who is divorced and 
is not described in subparagraph (A) shall be 
treated as a first-time homebuyer for purposes 
of this section if such individual had no present 
ownership interest in a principal residence since 
such individual’s most recent divorce and dur-
ing the 3-year period ending on the date of the 
purchase of the principal residence with respect 
to which payments from a first-time homebuyer 
account are made under this section. 
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‘‘(2) PRINCIPAL RESIDENCE.—The term ‘prin-
cipal residence’ has the same meaning as when used 
in section 121. 
‘‘(3) DESIGNATED
BENEFICIARY.—The term 
‘designated beneficiary’ means— 
‘‘(A) the individual designated at the com-
mencement of the first-time homebuyer account 
as the beneficiary of amounts paid (or to be 
paid) to the account, or 
‘‘(B) in the case of a change in bene-
ficiaries described in subsection (d)(1)(C), the 
individual who is the new beneficiary. 
‘‘(4) ACCOUNT
OWNERSHIP.—Except in the 
case of individuals who are married, an account may 
be owned by only one individual and may only have 
one designated beneficiary. 
‘‘(5) COST-OF-LIVING
ADJUSTMENT.—In the 
case of any taxable year beginning in a calendar 
year after 2018, the dollar amounts under sub-
section (b)(1) shall be increased by an amount equal 
to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
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mined by substituting ‘calendar year 2017’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
If any amount after adjustment under the preceding 
sentence is not a multiple of $100, such amount 
shall be rounded to the next lower multiple of 
$100.’’. 
(b) EXCESS CONTRIBUTIONS.— 
(1) IN
GENERAL.—Section 4973(a) of such 
Code is amended by striking ‘‘or’’ at the end of 
paragraph (5), by inserting ‘‘or’’ at the end of para-
graph (6), and by inserting after paragraph (6) the 
following new paragraph: 
‘‘(7) a first-time homebuyer account (within the 
meaning of section 530A),’’. 
(2) EXCESS CONTRIBUTIONS.—Section 4973 of 
such Code is amended by adding at the end the fol-
lowing new subsection: 
‘‘(i) EXCESS CONTRIBUTIONS TO FIRST-TIME HOME-
BUYER ACCOUNT.—In the case of a first-time homebuyer 
account, the term ‘excess contributions’ means the amount 
by which the amount contributed for the taxable year to 
such account (other than contributions described in sec-
tion 530A(d)(1)(C)(iv) and (v)) exceeds the contribution 
limits under section 530A(b). For purposes of the pre-
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ceding sentence, any contribution which is distributed 
from the account in a distribution to which section 
530A(d)(1)(C)(iii)(III) applies shall be treated as an 
amount not contributed.’’. 
(c) CLERICAL AMENDMENT.—The table of parts for 
subchapter F of chapter 1 of such Code is amended by 
adding at the end the following new item: 
‘‘PART IX. FIRST-TIME HOMEBUYER ACCOUNTS’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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