(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:

IX Invest America accounts

530A. Invest America accounts

(a) General rule

An invest America account shall be exempt from taxation under this subtitle. Notwithstanding the preceding sentence, such account shall be subject to the taxes imposed by section 511 (relating to imposition of tax on unrelated business income of charitable organizations).

(b) Invest America account

For purposes of this section—

(1) In general

The term invest America account means a trust created or organized in the United States for the exclusive benefit of an individual and which is designated (in such manner as the Secretary shall prescribe) at the time of the establishment of the trust as an invest America account, but only if the written governing instrument creating the trust meets the following requirements:

(A)

Except in the case of a qualified rollover contribution described in subsection (e), no contribution will be accepted—

(i)

unless it is in cash, and

(ii)

if such contribution would result in aggregate contributions for the taxable year exceeding the contribution limit specified in subsection (c)(1).

(B)

No distribution (other than a qualified rollover distribution) will be allowed before the date on which the beneficiary attains the age of 18.

(C)

The trustee is a bank (as defined in section 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 individual retirement plan.

(D)

The interest of an individual in the balance of his account is nonforfeitable.

(E)

The assets of the trust shall not be commingled with other property except in a common trust fund or common investment fund.

(F)

No part of the trust funds will be invested in any asset other than eligible investments.

(2) Eligible investments

The term eligible investments means any mutual fund or exchange traded fund which—

(A)

tracks the returns of the Standard and Poor's 500 stock market index, and

(B)

meets such other requirements as provided by the Secretary.

(c) Treatment of contributions

(1) Contribution limit

The contribution limit for any taxable year is $5,000.

(2) Cost-of-living adjustment

(A) In general

In the case of any taxable year beginning in a calendar year after 2026, the $5,000 amount under paragraph (1) shall be increased by an amount equal to—

(i)

such dollar amount, multiplied by

(ii)

the cost-of-living adjustment determined under section 1(f)(3) for the calendar year, determined by substituting calendar year 2025 for calendar year 2016 in subparagraph (A)(ii) thereof.

(B) Rounding

If any increase under subparagraph (A) is not a multiple of $100, such amount shall be rounded to the next lower multiple of $100.

(d) Distributions

(1) In general

Any distribution from an invest America account shall be included in gross income of the distributee in the manner as provided in section 72, except that the character of such income shall be determined after the application of section 1(h)(12).

(2) Exceptions

Paragraph (1) shall not apply to any qualified rollover contribution.

(e) Qualified rollover contribution

For purposes of this section, the term qualified rollover contribution means—

(1)

a contribution made pursuant to section 3(a) of the Invest America Act, or

(2)

an amount which is paid in a direct trustee-to-trustee transfer to an invest America account maintained for the benefit of such designated beneficiary.

(f) Treatment after death of account beneficiary

Rules similar to the rules of section 223(f)(8) shall apply for purposes of this section.

(g) Custodial accounts

For purposes of this section, a custodial account or an annuity contract issued by an insurance company qualified to do business in a State shall be treated as a trust under this section if—

(1)

the custodial account or annuity contract would, except for the fact that it is not a trust, constitute a trust which meets the requirements of subsection (b)(1), and

(2)

in the case of a custodial account, the assets of such account are held by a bank (as defined in section 408(n)) or another person who demonstrates, to the satisfaction of the Secretary, that the manner in which he will administer the account will be consistent with the requirements of this section.

For purposes of this title, in the case of a custodial account or annuity contract treated as a trust by reason of the preceding sentence, the person holding the assets of such account or holding such annuity contract shall be treated as the trustee thereof.

(h) Reports

The trustee of an invest America account shall make such reports regarding such account to the Secretary and to the beneficiary of the account with respect to contributions, distributions, and such other matters as the Secretary may require. The reports required by this subsection shall be filed at such time and in such manner and furnished to such individuals at such time and in such manner as may be required.

(b) Distribution taxed at same rate as net capital gains

Section 1(h) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(12) Distributions from invest America accounts taxed as net capital gain

For purposes of this subsection, the term net capital gain meant the net capital gain (determined without regard to this paragraph) increased by the amount of distributions made during the taxable year from an invest America account (as defined in section 530A) which are includible in income under section 530A(d).

(c) Tax on excess contributions

(d) Failure To provide reports on invest America accounts

Paragraph (2) of section 6693(a) of the Internal Revenue Code of 1986 is amended by striking and at the end of subparagraph (E), by striking the period at the end of subparagraph (F) and inserting , and, and by adding at the end the following new subparagraph:

(G)

section 530A(h) (relating to invest America accounts).

(e) Conforming amendment

The table of parts for subchapter F of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new item:

(f) Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2024.

(a) In general

As soon as practical after an individual is certified as an eligible individual under subsection (c), the Secretary of the Treasury shall pay to the invest America account of such eligible individual an amount equal to $1,000.

(b) Eligible individual

For purposes of this section, the term eligible individual means any individual who—

(c) Certification of eligible individuals

(d) Automatic establishment of invest America accounts in certain cases

(e) Tax treatment

(f) Appropriation

There are hereby appropriated such sums as may be necessary to make payments under subsection (a).