[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7402 Introduced in House (IH)]
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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.
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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 distributions from
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 ``Unlocking Homeownership Act''.
SEC. 2. ALLOWANCE OF DISTRIBUTIONS FROM 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) Distributions for first home purchases.--
``(i) In general.--Subparagraph (A) shall
not apply to any qualified first-time homebuyer
distribution.
``(ii) Qualified first-time homebuyer
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 extent such
distribution is used by the beneficiary 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 beneficiary, the spouse of such
beneficiary, or any child, grandchild, or
ancestor of such beneficiary or the
beneficiary's spouse.
``(iii) Qualified acquisition costs.--For
purposes of this subparagraph, 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 individual (and if
married, such individual's spouse) had
no present ownership 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 the
date on which a binding contract to
acquire the principal residence to
which clause (ii) applies is entered
into, or on which construction or
reconstruction of such a principal
residence is commenced.
``(v) Special rule where delay in
acquisition.--If any distribution from a
qualified tuition program fails to meet the
requirements of clause (ii) solely by reason of
a delay or cancellation of the purchase or
construction of the residence, the amount of
the distribution may be transferred to another
qualified tuition program of the designated
beneficiary as provided in subparagraph
(C)(i)(I), or an ABLE account of such
beneficiary as provided in subparagraph
(C)(i)(III), determined by substituting `120
days' for `60 days' in subparagraph (C)(i),
except that--
``(I) subparagraph (C)(iii) shall
not be applied to such transfer, and
``(II) such amount shall not be
taken into account in determining
whether subparagraph (C)(iii) applies
to any other amount.
``(vi) Recontributions.--
``(I) General rule.--Any designated
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 repayments.--
For purposes of this paragraph, if a
contribution is made pursuant to
subclause (I) with respect to a
qualified distribution, then the
designated beneficiary shall, to the
extent of the amount of the
contribution, be treated as having
received the qualified distribution as
a transfer under subparagraph (C)(i)
within 60 days of the distribution.
``(III) Qualified distribution.--
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
disaster 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 incident
period of such qualified disaster and
ending on the date which is 30 days
after the last day of such incident
period.
``(IV) Applicable period.--For
purposes of this clause, the term
`applicable period' means, in the case
of a principal residence in a qualified
disaster area with respect to any
qualified disaster, the period
beginning 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 Emergency
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
`incident period' means, with respect
to any qualified disaster, the period
specified by the Federal Emergency
Management Agency as the period during
which such disaster occurred.
``(VIII) Applicable date.--For
purposes of this clause, the term
`applicable date' means the latest of
the date of the enactment of this
subparagraph, the first day of the
incident period with respect to the
qualified disaster, or the date of the
disaster declaration 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.
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