reduced by an amount which bears the same ratio to the amount otherwise so includible as such expenses bear to such distributions. (C) Additional tax for distributions 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 distribution from a first-time homebuyer account which is includible in gross income shall be increased by the applicable percentage of the amount which is so includible. (ii) Applicable percentage For purposes of clause (i), the applicable percentage is— (I) in the case of a payment or distribution made not later than 10 years after the date of the first contribution to the account, 5 percent, and (II) in the case of any other payment or distribution, 10 percent. (iii) Exceptions Clause (i) shall not apply if the payment or distributions— (I) is made to a beneficiary (or to the estate of the designated beneficiary) on or after the death of the designated beneficiary, (II) is attributable to the designated beneficiary’s being disabled (within the meaning of section 72(m)(7)), or (III) are made under rules similar to the rules under section 408(d)(4) (relating to contributions returned before due date of return). (D) Rollovers Subparagraph (A) shall not apply to any amount paid or distributed from a first-time homebuyer account to the extent that the amount received is paid, not later than the 60th day after the date of such payment or distribution, into another first-time homebuyer account for the benefit of the same beneficiary. The preceding sentence shall not apply to any payment or distribution if it applied to any prior payment or distribution during 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 homebuyer account shall not be treated as a distribution for purposes of subparagraph (A). (F) Disallowance of excluded amounts as deduction, credit, or exclusion No deduction, credit, or exclusion shall