The Invest America Act establishes new tax-exempt investment vehicles called Invest America Accounts (IAAs) within the Internal Revenue Code. These accounts are designed for the exclusive benefit of an individual, allowing annual cash contributions up to $5,000, which will be adjusted for inflation after 2026. Funds within an IAA can only be invested in eligible investments, specifically mutual funds or exchange-traded funds that track the returns of the Standard and Poor's 500 stock market index. Distributions from an IAA are generally included in gross income but are taxed at the same rate as net capital gains, providing a favorable tax treatment. A key restriction is that no distributions are permitted before the beneficiary attains the age of 18, except for qualified rollover contributions. The bill also imposes a 6% excise tax on excess contributions made to these accounts. Furthermore, the legislation mandates a federal contribution of $1,000 to an IAA for each eligible individual. An eligible individual is defined as a U.S. citizen born after July 4, 2026, who has at least one U.S. citizen parent at the time of birth. The Secretary of the Treasury is tasked with establishing procedures for certifying eligible individuals and, if necessary, automatically establishing an IAA for them, selecting providers based on criteria like low fees and historical performance. These federal contributions are excluded from the individual's gross income, and the provisions of the Act apply to taxable years beginning after December 31, 2024.