,i #aac? ,,congress #a/ ,session ,h4 ,r4 #biag ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,augu/ #a1 #bjac ,mr4 ,s]rano 7= himself1 ,mr4 ,h9ojosa1 ,mr4 ,doggett1 ,mr4 ,cony]s1 ,mr4 ,ri*mond1 ,mrs4 ,c>olyn ,b4 ,maloney ( ,new ,york1 ,ms4 ,m5g1 ,mr4 ,pi]luisi1 ,ms4 ,roybal-,all>d1 ,ms4 ,velzquez1 ,mr4 ,gutirrez1 ,mr4 ,c>twright1 ,mr4 ,honda1 ,ms4 ,mc,collum1 ,mr4 ,sires1 ,mr4 ,grijalva1 ,mr4 ,v>gas1 ,mr4 ,nolan1 ,mr4 ,ca/ro ( ,texas1 ,mr4 ,johnson ( ,georgia1 & ,mr4 ,jeffries7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to promote sav+s by provid+ a tax cr$it = eligible taxpay]s :o contribute to sav+s products & to facilitate taxpay]s receiv+ ?is cr$it & op5 a designat$ sav+s product :5 !y file _! ,f$]al income tax returns4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,f9ancial ,security ,cr$it ,act ( #bjac4 #b4 ,f9d+s ,congress f9ds ! foll[+3 7#a7 ,! p]sonal sav+s rate rea*$ hi/oric l[s 9 ! pa/ decade1 & a lack ( p]sonal sav+s 0 a major contributor to ! dep? & sev]ity ( ! recession ( #bjjg-bjji4 7#b7 ,h\seholds cont9ue to lack ! sav+s or /ructures to meet %ort-t]m & long-t]m ne$s1 z evid5c$ by ! foll[+3 7,a7 ,accord+ to ! ,employee ,b5efit ,rese>* ,in/itute1 among full-"t1 full-ye> wage & sal>y work]s ages #ba-fd1 only #ed4e p] c5t p>ticipat$ 9 a retirem5t plan 9 #bjaj4 7,b7 ,accord+ to ! ,f$]al ,deposit ,insurance ,corporation's #bjaa ,survey ( ,unbank$ & ,und]bank$ ,h\seholds1 an e/imat$ #h4b p]c5t ( ,unit$ ,/ates h\seholds1 approximately #aj million h\seholds1 are unbank$4 ,^! h\seholds d n h a *eck+ or sav+s acc\nt4 ,9 total1 #bi4c p]c5t ( h\seholds d n h a sav+s acc\nt4 7,c7 ,m ?an #a 9 #d ,am]ican h\seholds lives 9 asset pov]ty1 mean+ !y lack ! sav+s or o!r assets to cov] basic exp5ses 7equival5t to :at c\ld be pur*as$ ) a pov]ty level income7 = ?ree mon?s if a lay(f or o!r em]g5cy leads to loss ( income4 ,if assets t _c easily be conv]t$ to ca%1 are exclud$1 su* z a home or a bus9ess1 z _m z #d 9 #aj h\seholds live 9 liquid asset pov]ty1 mean+ !y lack ! ca% sav+s to survive ?ree mon?s at ! pov]ty l9e4 7#c7 ,sav+s make families m resili5t to f9ancial %ocks & m upw>dly mobile1 z evid5c$ by ! foll[+3 7,a7 ,ev5 small sums ( sav+s1 #b1jjj or less1 h be5 %[n to significantly r$uce ! incid5ce ( negative f9ancial or mat]ial outcomes1 su* z =ego+ adequate nutrition4 7,b7 ,*ildr5 born to l[-income1 high sav+ p>5ts are mu* m likely 7#ga p]c5t7 to move up ! economic ladd] ?an *ildr5 born to l[-income1 l[-sav+ p>5ts 7#ej p]c5t7 ov] a g5]ation4 7#d7 ,successful pilot programs h be5 run 9 cities z div]se z ,h\/on1 ,texas2 ,new>k1 ,new ,j]sey2 ,new ,york ,city1 ,new ,york2 ,san ,antonio1 ,texas2 & ,tulsa1 ,oklahoma4 ,^! programs1 run ?r\gh ,volunte] ,income ,tax ,assi/ance sites s]v+ only a fraction ( pot5tially eligible tax fil]s 9 ea* city1 h %[n t tax fil]s ) l[ incomes c & w save :5 pres5t$ ) ! "r inc5tive at ! "r mom5t4 7#e7 ,x is 9 ! economic int]e/s ( ! ,unit$ ,/ates to promote sav+s among all memb]s ( society1 reg>dless ( income4 #c4 ,f9ancial security cr$it 7a7 ,9 g5]al ,subp>t ,c ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #cf;,c ! foll[+ new section3 #cf;,d4 ,f9ancial security cr$it 7a7 ,all[ance ( cr$it ,!re %all be all[$ z a cr$it aga9/ ! tax impos$ by ?is subtitle = a taxable ye> an am\nt equal to ! less] (-- 7#a7 #ejj1 or 7#b7 #ej p]c5t ( ! total am\nt deposit$ or contribut$ by ! taxpay] 9 accordance ) subsection 7b77#a7 into designat$ sav+s products dur+ su* taxable ye>4 7b7 ,limitations 7#a7 ,cr$it mu/ be deposit$ 9 or contribut$ to designat$ sav+s product ,no am\nt %all be all[$ z a cr$it "u subsection 7a7 = a taxable ye> unless ! taxpay] designates on ! taxpay]'s return ( tax = ! taxable ye> t ! am\nt ( ! cr$it = su* taxable ye> be deposit$ 9 or contribut$ to "o or m designat$ sav+s products ( ! taxpay] & ! ,secret>y makes su* deposits or contributions to ! designat$ sav+s products4 7#b7 ,limitation bas$ on adju/$ gross income 7,a7 ,9 g5]al ,! am\nt ( ! cr$it all[able "u subsection 7a7 %all be r$uc$ 7b n bel[ z]o7 by an am\nt :i* be>s ! same ratio to ! am\nt ( su* cr$it 7det]m9$ )\t reg>d to ?is p>agraph7 z-- 7i7 ! am\nt by :i* ! taxpay]'s adju/$ gross income exce$s ! ?re%old am\nt1 be>s to 7ii7 #ae1jjj4 7,b7 ,?re%old am\nt ,= purposes ( subp>agraph 7,a71 ! t]m ?re%old am\nt means-- 7i7 #ee1ejj 9 ! case ( a jo9t return1 7ii7 #da1fbe 9 ! case ( an individual :o is n m>ri$1 & 7iii7 #ej p]c5t ( ! doll> am\nt 9 effect "u clause 7i7 9 ! case ( a m>ri$ individual fil+ a sep>ate return4 ,= purposes ( ?is subp>agraph1 m>ital /atus %all be det]m9$ "u section #ggjc4 7c7 ,designat$ sav+s product ,= purposes ( ?is section1 ! t]m designat$ sav+s product means any ( ! foll[+3 7#a7 ,a qualifi$ retirem5t plan 7z def9$ 9 section #digd7;c774 7#b7 ,a qualifi$ tuition program 7z def9$ 9 section #ebi74 7#c7 ,a ,cov]dell education sav+s acc\nt 7z def9$ 9 section #ecj74 7#d7 ,a ,unit$ ,/ates sav+s bond4 7#e7 ,a c]tificate ( deposit 7or simil> class ( deposit7 ) a duration ( at lea/ #h mon?s4 7#f7 ,a sav+s acc\nt4 7#g7 ,any o!r type ( sav+s product consid]$ to be appropriate by ! ,secret>y = ! purposes ( ?is section4 7d7 ,special rules 7#a7 ,tax refunds treat$ z deposit$ or contribut$ 9 curr5t taxable ye> ,= purposes ( subsection 7a77#b71 ! am\nt ( any ov]paym5t ( taxes refund$ to ! taxpay] 7r$uc$ by any am\nt attributable to ! cr$it all[$ "u ?is section by reason ( be+ consid]$ z an ov]paym5t by section #fdja7;b77 & designat$ = deposit 9 or contribution to a designat$ sav+s product ( ! taxpay] %all be treat$ z an am\nt deposit$ or contribut$ 9 ! taxable ye> 9 :i* s deposit$ or contribut$4 7#b7 ,ma9t5ance ( deposit ,no contribution or deposit %all be tak5 into acc\nt "u subsection 7a7 unless su* contribution or deposit rema9s 9 ! designat$ sav+s product = n less ?an #h cont9u\s mon?s4 7#c7 ,r$uction 9 deposits 9 designat$ sav+s products 7,a7 ,9 g5]al ,! am\nt ( deposits or contributions tak5 into acc\nt "u subsection 7a7 %all be r$uc$ 7b n bel[ z]o7 by ! aggregate am\nt ( di/ributions 7o!r ?an int]e/ f designat$ sav+s products specifi$ 9 p>agraphs 7#d71 7#e71 7#f71 & 7#g7 ( subsection 7c77 f all designat$ sav+s products ( ! taxpay] dur+ ! te/+ p]iod4 ,! prec$+ s5t5ce %all n apply to ! portion ( any di/ribution :i* is n includible 9 gross income by reason ( a tru/ee-to-tru/ee transf] or a rollov] di/ribution4 7,b7 ,te/+ p]iod ,= purposes ( subp>agraph 7,a71 ! te/+ p]iod1 ) respect to a taxable ye>1 is ! p]iod :i* includes-- 7i7 su* taxable ye>1 7ii7 ! #b prec$+ taxable ye>s1 & 7iii7 ! p]iod aft] su* taxable ye> & be=e ! due date 7includ+ ext5sions7 = fil+ ! return ( tax = su* taxable ye>4 7,c7 ,o!r rules ,rules simil> to subp>agraphs 7,c7 & 7,d7 ( section #be;,b7d77#b7 %all apply = purposes ( ?is p>agraph4 7#d7 ,d5ial ( d\ble b5efit ,no cr$it %all be all[$ "u section #be;,b ) respect to any deposit = :i* a cr$it is all[$ "u ?is section4 7#e7 ,coord9ation ) o!r refundable cr$its ,! cr$it all[$ by subsection 7a7 %all be tak5 into acc\nt aft] tak+ into acc\nt ! cr$its all[$ by 7or treat$ z all[$ by7 ?is subp>t 7o!r ?an ?is section74 7e7 ,inflation adju/m5ts 7#a7 ,cr$it limit ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjbc1 ! doll> am\nt 9 subsection 7a77#a7 %all be increas$ by an am\nt equal to-- 7,a7 su* doll> am\nt1 multipli$ by 7,b7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjab = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 7#b7 ,,agi ?re%olds ,9 ! case ( any taxable ye> beg9n+ 9 a cal5d> ye> aft] #bjac1 ea* ( ! doll> am\nts 9 clauses 7i7 & 7ii7 ( subsection 7b77#b77;,b7 %all be increas$ by an am\nt equal to-- 7,a7 su* doll> am\nt1 multipli$ by 7,b7 ! co/-(-liv+ adju/m5t det]m9$ "u section #a7;f77#c7 = ! cal5d> ye> 9 :i* ! taxable ye> beg9s1 det]m9$ by sub/itut+ cal5d> ye> #bjab = cal5d> ye> #aiib 9 subp>agraph 7,b7 !re(4 7#c7 ,r\nd+ 7,a7 ,cr$it limit ,if any increase "u p>agraph 7#a7 is n a multiple ( #aj1 su* increase %all be r\nd$ to ! next l[e/ multiple ( #aj4 7,b7 ,,agi ?re%olds ,if any increase "u p>agraph 7#a7 is n a multiple ( #ajj1 su* increase %all be r\nd$ to ! next l[e/ multiple ( #ajj4 7f7 ,regulations ,n lat] ?an #ab mon?s f date ( enactm5t ( ?is section1 ! ,secret>y %all issue su* regulations or o!r guidance z ! ,secret>y det]m9es necess>y or appropriate to c>ry out ?is section1 includ+ regulations or guidance-- 7#a7 to ensure t designat$ sav+s products are subject to appropriate report+ requirem5ts1 includ+ ! report+ ( contributions & o!r deposits dur+ ! cal5d> ye>1 end ( cal5d> ye> acc\nt balances1 & e>n+s f designat$ sav+s products specifi$ 9 p>agraphs 7#d71 7#e71 7#f71 & 7#g7 ( subsection 7c71 7#b7 to c>ry out ! ma9t5ance ( deposit provisions "u subsection 7d77#b71 & 7#c7 to prev5t avoidance ( ! purposes ( ?is subsection4 4 7b7 ,con=m+ am5dm5ts 7#a7 ,section #acbd7;b77#b7 ( title #ca1 ,unit$ ,/ates ,code1 is am5d$ by ins]t+ #cf;,d1 aft] #cf;,b14 7#b7 ,! table ( sections = subp>t ,c ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( ! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] ! item relat+ to section #cf;,c ! foll[+ new item3 ,sec4 #cf;,d4 ,f9ancial security cr$it4 4 7c7 ,effective date ,! am5dm5ts made by ?is section %all apply to taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4 #d4 ,op5+ ( acc\nts on ,f$]al income tax returns to facilitate sav+s 7a7 ,notification ( option 7#a7 ,9 g5]al ,! ,commission] ( ,int]nal ,rev5ue %all notify individuals :o may qualify = a cr$it "u section #cf;,d ( ! ,int]nal ,rev5ue ,code ( #aihf b fail to provide suffici5t in=mation to all[ ! ,secret>y to deposit or contribute ! cr$it am\nt to a designat$ sav+s product t !y h ! option ( an electronic direct deposit & t !y may be eligible = ! f9ancial security cr$it "u section #cf;,d ( ! ,int]nal ,rev5ue ,code ( #aihf if !y deposit a refund or a portion ( _! refund 9 any designat$ sav+s product4 7#b7 ,me?od ( notification ,! notification "u p>agraph 7#a7 %all be made ?r\gh-- 7,a7 a public aw>5ess program und]tak5 by ! ,secret>y ( ! ,treasury1 9 conc]t ) ! ,commission] ( ! ,int]nal ,rev5ue & o!rs z necess>y1 beg9n+ n lat] ?an #f mon?s aft] ! date ( ! enactm5t ( ?is ,act2 7,b7 tax return prep>]s & l[-income taxpay] cl9ics2 & 7,c7 ! inclusion ( su* a notice 9 ! in/ruction mat]ial = any ,f$]al income tax return4 7b7 ,e/abli%m5t ( designat$ acc\nt program ,! ,secret>y ( ! ,treasury %all develop1 9 consultation ) ! ,f$]al ,managem5t ,sy/em1 a program to m9imize ! deliv]y ( non-electronic ,f$]al income tax refunds by deposit+ refunds electronically to a safe1 l[-co/ acc\nt held by a depository in/itution4 ,?is program %all include-- 7#a7 provisions = su* tax refunds to be deposit$ into a designat$ acc\nt2 7#b7 e/abli%m5t ( acc\nt p>amet]s ) respect to m9imum balance requirem5ts1 limitations on ov]drafts1 ov]draft fees1 o!r fees1 & additional requirem5ts2 7#c7 e/abli%m5t ( means = ! taxpay] to access ! acc\nt electronically & to h timely1 direct access to ! funds 9 ! acc\nt2 & 7#d7 provisions to all[ taxpay]s to op5 an acc\nt ) _! ,f$]al income tax refunds ?r\gh f9ancial s]vice provid]s1 s long su* acc\nt is held at a depository in/itution insur$ "u ! ,f$]al ,deposit ,insurance ,act or a cr$it union insur$ "u ! ,f$]al ,cr$it ,union ,act4 7c7 ,effective date ,! notification "u subsection 7a7 & ! program "u subsection 7b7 %all be effective ) respect to ,f$]al income tax returns = taxable ye>s beg9n+ aft] ,decemb] #ca1 #bjac4