Account is transferred to a Medisave account before the end of any taxable year ending on or before one year after the date of the enactment of the Family First Medisave Empowerment Act , such transfer shall be treated as a rollover to the Medisave account under section 530A(e)(5)(B) of the Internal Revenue Code of 1986 and the distribution from the health flexible spending arrangement, Archer MSA, or Health Savings Account shall not be includible in gross income. (e) Clerical amendments The table of sections for part VIII of subchapter F of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 530A. Medisave Accounts. . (f) Effective date The amendments made by this section shall apply to taxable years beginning after one year after the date of the enactment of this Act. 3. Tax credit for contributions to Medisave account during first year (a) In general In the case of an individual who makes a contribution to a Medisave account before the end of the 1-year period beginning on the date of the enactment of this Act, there shall be allowed as a credit against the tax imposed by subtitle A of the Internal Revenue Code of 1986 for the taxable year in which the contribution is made an amount equal to the aggregate of $1 for every $3 contributed to the account (other than a rollover contribution under section 530A(e)(5) of such Code) for such taxable year. (b) Limitation The aggregate amount allowed to an individual as a credit under subsection (a) for all taxable years shall not exceed $1,000. (c) Portion of credit refundable For purposes of this section— (1) In general For purposes of the Internal Revenue Code of 1986, in the case of an eligible individual— (A) Increase in credit rate Subsection (a) shall be applied by substituting $1 for every $1 contributed for $1 for every $3 contributed . (B) Credit refundable The credit allowed under this section shall be treated in the same manner as a credit allowed under subpart C of part IV of subchapter A of chapter 1 of such Code. (2)