1. Short title This Act may be cited as the American Dream Down Payment Act of 2020 . 2. Qualified down payment savings programs (a) In general Part VIII of subchapter F of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 529A the following new section: 529B. Qualified down payment savings programs (a) In general A qualified down payment savings program shall be exempt from taxation under this subtitle. Notwithstanding the preceding sentence, such program shall be subject to the taxes imposed by section 511 (relating to imposition of tax on unrelated business income of charitable organizations). (b) Qualified down payment savings program For purposes of this section— (1) In general The term qualified down payment savings program means a program established and maintained by a State or agency or instrumentality thereof— (A) under which a person may make contributions to a qualified down payment savings account which is established for the purpose of meeting qualified down payment expenses of the designated beneficiary of the account, and (B) which meets the other requirements of this subsection. (2) Cash contributions (A) In general A program shall not be treated as a qualified down payment savings program unless it provides that no contribution will be accepted— (i) unless it is in cash, and (ii) except in the case of contributions under subsection (c)(3)(C), if such contribution to a qualified down payment savings account would result in the balance of such account exceeding $102,080. (B) Inflation adjustment (i) In general In the case of any calendar year beginning after 2020, the $102,080 amount in subparagraph (A)(ii) shall be increased by an amount equal to— (I) such dollar amount, multiplied by (II) the cost-of-living adjustment determined under clause (ii). (ii) Cost-of-living adjustment For purposes of clause (i), the cost-of-living adjustment for any calendar year is the percentage (if any) by which— (I) the CPI for the preceding calendar year, exceeds (II) the CPI