US HB7468

Allows tax-free distributions from 529 qualified tuition programs for first-time homebuyers to purchase a principal residence, provided the account has been maintained for at least 15 years

Limits eligible distributions to contributions (and earnings) made more than 5 years before the distribution date, with a lifetime cap of $35,000 per beneficiary

Requires the distribution to be used within 60 days of receipt for the home purchase, with a 120-day extension available if the purchase is delayed or cancelled

Imposes tax recapture with interest if the beneficiary sells the home or stops using it as a principal residence within 5 years, with the recapture amount reduced by 20% for each full year of ownership

Coordinates the $35,000 lifetime limit with the existing 529-to-Roth IRA rollover provision, so combined distributions under both rules cannot exceed $35,000