,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #dehb  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,may #f1 #bjad ,mr4   
,ti]ney 7= himself1 ,mr4 ,george ,mill] 
( ,cali=nia1 ,mr4 ,c\rtney1 ,mr4        
,h9ojosa1 ,mr4 ,holt1 ,mr4 ,grijalva1   
,mr4 ,bi%op ( ,new ,york1 ,mr4 ,scott ( 
,virg9ia1 ,ms4 ,fudge1 ,mr4 ,sablan1    
,ms4 ,wilson ( ,florida1 ,ms4 ,bonamici1
 ,mr4 ,takano1 ,ms4 ,lee ( ,cali=nia1   
,mr4 ,blum5au]1 ,mr4 ,v>gas1 ,mr4 ,ca/ro
 ( ,texas1 ,ms4 ,%ea-,port]1 ,ms4       
,norton1 ,ms4 ,tsongas1 ,mr4 ,pocan1 &  
,ms4 ,ku/]7 introduc$ ! foll[+ bill2 :i*
 0 ref]r$ to ! ,committee on ,education 
& ! ,work=ce1 & 9 addition to !         
,committee on ,ways & ,means1 = a p]iod 
to be subsequ5tly det]m9$ by ! ,speak]1 
9 ea* case = consid]ation ( su*         
provisions z fall )9 ! jurisdiction ( ! 
committee conc]n$  ,a ,,bill  ,to am5d !
 ,high] ,education ,act ( #aife to      
provide = ! ref9anc+ ( c]ta9 ,f$]al     
/ud5t loans1 & = o!r purposes4  #a4     
,%ort title ,?is ,act may be cit$ z !   

,bank on ,/ud5ts ,em]g5cy ,loan         
,ref9anc+ ,act4  #b4 ,ref9anc+ programs 
7a7 ,program au?ority ,section #dea7;a7 
( ! ,high] ,education ,act ( #aife 7#bj 
,u4,s4,c4 #ajhg;a7a77 is am5d$--  7#a7  
by /rik+ & 7#b7 & ins]t+ 7#b72 &  7#b7  
by ins]t+ 2 & 7#c7 to make loans "u     
section #dfj;,a & section #dfj;,b aft]  
section #dei;,a4  7b7 ,ref9anc+ ,program
 ,"p ,d ( title ,,iv ( ! ,high]         
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhg;a et seq47 is am5d$ by add+ at !  
end ! foll[+3  #dfj;,a4 ,ref9anc+ ,,ffel
 & ,f$]al ,direct ,loans  7a7 ,9 g5]al  
,beg9n+ n lat] ?an #ahj days aft] ! date
 ( enactm5t ( ! ,bank on ,/ud5ts        
,em]g5cy ,loan ,ref9anc+ ,act1 !        
,secret>y %all e/abli% a program "u :i* 
! ,secret>y1 ^u ! receipt ( an          
application f a qualifi$ borr[]1        
reissues ! borr[]'s orig9al loan "u ?is 
"p or "p ,b z a loan "u ?is "p1 9       
accordance ) ! provisions ( ?is section1
 9 ord] to p]mit ! borr[] to obta9 !    
int]e/ rate provid$ "u subsection 7c74  

7b7 ,reissu+ ,loans  7#a7 ,f$]al ,direct
 ,loans ,^u application ( a qualifi$    
borr[]1 ! ,secret>y %all reissue a      
,f$]al ,direct ,/af=d ,loan1 a ,f$]al   
,direct ,unsubsidiz$ ,/af=d ,loan1 a    
,f$]al ,direct ,,plus ,loan1 or a ,f$]al
 ,direct ,consolidation ,loan ( !       
qualifi$ borr[]1 = :i* ! fir/           
disbursem5t 0 made1 or ! application = !
 consolidation loan 0 receiv$ be=e ,july
 #a1 #bjac1 9 an am\nt equal to ! sum   
(--  7,a7 ! unpaid pr9cipal1 accru$     
unpaid int]e/1 & late *>ges ( ! orig9al 
loan2 &  7,b7 ! adm9i/rative fee "u     
subsection 7d77#c74  7#b7 ,dis*>g+ &    
reissu+ ,,ffel program loans z ref9anc$ 
,f$]al ,direct ,loans ,^u application ( 
a qualifi$ borr[] = any loan t 0 made1  
insur$1 or gu>ante$ "u "p ,b & = :i* !  
fir/ disbursem5t 0 made1 or !           
application = ! consolidation loan 0    
receiv$1 be=e ,july #a1 #bjaj1 !        
,secret>y %all reissue su* loan z a loan
 "u ?is "p1 9 an am\nt equal to ! sum ( 
! unpaid pr9cipal1 accru$ unpaid int]e/1

 & late *>ges ( ! orig9al loan & !      
adm9i/rative fee "u subsection 7d77#c71 
to ! borr[] 9 accordance ) ! foll[+3    
7,a7 ,! ,secret>y %all pay ! proce$s (  
su* reissu$ loan to ! eligible l5d] ( ! 
loan made1 insur$1 or gu>ante$ "u "p ,b1
 9 ord] to dis*>ge ! borr[] f any rema9+
 obligation to ! l5d] ) respect to !    
orig9al loan4  7,b7 ,! ,secret>y %all   
reissue--  7i7 a loan orig9ally made1   
insur$1 or gu>ante$ "u section #dbh z a 
,f$]al ,direct ,/af=d ,loan2  7ii7 a    
loan orig9ally made1 insur$1 or gu>ante$
 "u section #dbh;,b z a ,f$]al ,direct  
,,plus ,loan2  7iii7 a loan orig9ally   
made1 insur$1 or gu>ante$ "u section    
#dbh;,h z a ,f$]al ,direct ,unsubsidiz$ 
,/af=d ,loan2 &  7iv7 a loan orig9ally  
made1 insur$1 or gu>ante$ "u section    
#dbh;,c z a ,f$]al ,direct              
,consolidation ,loan4  7,c7 ,! int]e/   
rate = ea* loan reissu$ "u ?is p>agraph 
%all be ! rate provid$ "u subsection    
7c74  7c7 ,int]e/ rates  7#a7 ,9 g5]al  
,! int]e/ rate = ! reissu$ ,f$]al       

,direct ,/af=d ,loans1 ,f$]al ,direct   
,unsubsidiz$ ,/af=d ,loans1 ,f$]al      
,direct ,,plus ,loans1 & ,f$]al ,direct 
,consolidation ,loans1 %all be a rate   
equal to--  7,a7 9 any case :]e !       
orig9al loan 0 a loan "u section #dbh or
 #dbh;,h1 a ,f$]al ,direct ,/af=d loan1 
or a ,f$]al ,direct ,unsubsidiz$ ,/af=d 
,loan1 t 0 issu$ to an und]graduate     
/ud5t1 a rate equal to ! rate = ,f$]al  
,direct ,/af=d ,loans & ,f$]al ,direct  
,unsubsidiz$ ,/af=d ,loans issu$ to     
und]graduate /ud5ts = ! #ab-mon? p]iod  
beg9n+ on ,july #a1 #bjac1 & end+ on    
,june #cj1 #bjad2  7,b7 9 any case :]e !
 orig9al loan 0 a loan "u section #dbh  
or #dbh;,h1 a ,f$]al ,direct ,/af=d     
,loan1 or a ,f$]al ,direct ,unsubsidiz$ 
,/af=d ,loan1 t 0 issu$ to a graduate or
 pr(essional /ud5t1 a rate equal to !   
rate = ,f$]al ,direct ,unsubsidiz$      
,/af=d ,loans issu$ to graduate or      
pr(essional /ud5ts = ! #ab-mon? p]iod   
beg9n+ on ,july #a1 #bjac1 & end+ on    
,june #cj1 #bjad2  7,c7 9 any case :]e !

 orig9al loan 0 a loan "u section       
#dbh;,b or a ,f$]al ,direct ,,plus      
,loan1 a rate equal to ! rate = ,f$]al  
,direct ,,plus ,loans = ! #ab-mon? p]iod
 beg9n+ on ,july #a1 #bjac1 & end+ on   
,june #cj1 #bjad2 &  7,d7 9 any case :]e
 ! orig9al loan 0 a loan "u section     
#dbh;,c or a ,f$]al ,direct             
,consolidation ,loan1 a rate equal to ! 
rate = ,f$]al ,direct ,,plus ,loans = ! 
#ab-mon? p]iod beg9n+ on ,july #a1      
#bjac1 & end+ on ,june #cj1 #bjad4  7#b7
 ,fix$ ,rate ,! applicable rate ( int]e/
 det]m9$ "u p>agraph 7#a7 = a reissu$   
loan "u ?is section %all be fix$ = !    
p]iod ( ! loan4  7d7 ,t]ms & conditions 
( loans  7#a7 ,9 g5]al ,a loan t is     
reissu$ "u ?is section %all h ! same    
t]ms & conditions z ! orig9al loan1     
except z o!rwise provid$ 9 ?is section4 
7#b7 ,no automatic ext5sion ( repaym5t  
p]iod ,reissu+ a loan "u ?is section    
%all n result 9 ! ext5sion ( ! duration 
( ! repaym5t p]iod ( ! loan1 & ! borr[] 
%all reta9 ! same repaym5t t]m t 0 9    

effect on ! orig9al loan4 ,no?+ 9 ?is   
p>agraph %all be con/ru$ to prev5t a    
borr[] f elect+ a diff]5t repaym5t plan 
at any "t 9 accordance ) section        
#dee7;d77#c74  7#c7 ,adm9i/rative fee ,!
 ,secret>y %all *>ge ! borr[] ( a loan  
reissu$ "u ?is section an adm9i/rative  
fee ( n m ?an #j4e p]c5t ( ! sum ( !    
unpaid pr9cipal1 & accru$ unpaid int]e/ 
& late *>ges1 ( ! orig9al loan4  7e7    
,def9ition ( qualifi$ borr[]  7#a7 ,9   
,g5]al ,= purposes ( ?is section1 ! t]m 
qualifi$ borr[] means a borr[]--  7,a7 (
 a loan "u ?is "p or "p ,b = :i* ! fir/ 
disbursem5t 0 made1 or ! application = a
 consolidation loan 0 receiv$1 be=e     
,july #a1 #bjac2 &  7,b7 :o meets !     
eligibility requirem5ts bas$ on income  
or debt-to-income ratio e/abli%$ by !   
,secret>y4  7#b7 ,income requirem5ts ,n 
lat] ?an #ahj days aft] ! date (        
enactm5t ( ! ,bank on ,/ud5ts ,em]g5cy  
,loan ,ref9anc+ ,act1 ! ,secret>y %all  
e/abli% eligibility requirem5ts bas$ on 
income or debt-to-income ratio t take   

into consid]ation provid+ access to     
ref9anc+ "u ?is section = borr[]s ) !   
greate/ f9ancial ne$4  7f7 ,expiration (
 au?ority ,! ,secret>y's au?ority to    
reissue loans "u ?is section %all expire
 on ! date t is det]m9$ 9 accordance )  
section #d ( ! ,bank on ,/ud5ts ,em]g5cy
 ,loan ,ref9anc+ ,act4  #dfj;,b4 ,f$]al 
,direct ,ref9anc$ ,private ,loan program
  7a7 ,def9itions ,9 ?is section3  7#a7 
,eligible private education loan ,! t]m 
eligible private education loan means a 
private education loan1 z def9$ 9       
section #adj ( ! ,tru? 9 ,l5d+ ,act 7#ae
 ,u4,s4,c4 #afej71 t--  7,a7 0 disburs$ 
to ! borr[] be=e ,july #a1 #bjac2 &     
7,b7 0 = ! borr[]'s own po/second>y     
educational exp5ses = an eligible       
program at an in/itution ( high]        
education p>ticipat+ 9 ! loan program "u
 ?is "p1 z ( ! date t ! loan 0 disburs$4
  7#b7 ,f$]al ,direct ,ref9anc$ ,private
 ,loan ,! t]m ,f$]al ,direct ,ref9anc$  
,private ,loan means a loan issu$ "u    
subsection 7b77#a74  7#c7 ,private      

educational l5d] ,! t]m private         
educational l5d] has ! mean+ giv5 ! t]m 
9 section #adj ( ! ,tru? 9 ,l5d+ ,act   
7#ae ,u4,s4,c4 #afej74  7#d7 ,qualifi$  
borr[] ,! t]m qualifi$ borr[] means an  
individual :o--  7,a7 has an eligible   
private education loan2  7,b7 has be5   
curr5t on paym5ts on ! eligible private 
education loan = ! #f mon?s prior to !  
date ( ! qualifi$ borr[]'s application =
 ref9anc+ "u ?is section1 & is 9 good   
/&+ on ! loan at ! "t ( su* application2
  7,c7 is n 9 default on ! eligible     
private education loan or on any loan   
made1 insur$1 or gu>ante$ "u ?is "p or  
"p ,b or ,e2 &  7,d7 meets ! eligibility
 requirem5ts bas$ on income or          
debt-to-income ratio e/abli%$ by !      
,secret>y "u subsection 7b77#b74  7b7   
,program au?oriz$  7#a7 ,9 g5]al ,!     
,secret>y1 9 consultation ) ! ,secret>y 
( ! ,treasury1 %all c>ry out a program  
"u :i* ! ,secret>y1 ^u application by a 
qualifi$ borr[] :o has an eligible      
private education loan1 %all issue su*  

borr[] a loan "u ?is "p 9 accordance ) !
 foll[+3  7,a7 ,! loan issu$ "u ?is     
program %all be 9 an am\nt equal to !   
sum ( ! unpaid pr9cipal1 accru$ unpaid  
int]e/1 & late *>ges ( ! private        
education loan & ! orig9ation fee "u    
subsection 7f74  7,b7 ,! ,secret>y %all 
pay ! proce$s ( ! loan issu$ "u ?is     
program to ! private educational l5d] ( 
! private education loan1 9 ord] to     
dis*>ge ! qualifi$ borr[] f any rema9+  
obligation to ! l5d] ) respect to !     
orig9al loan4  7,c7 ,! ,secret>y %all   
require t ! qualifi$ borr[] und]go loan 
c\nsel+ t provides all ( ! in=mation &  
c\nsel+ requir$ "u clauses 7i7 ?r\gh    
7viii7 ( section #dhe7;b77#a77;,a7 be=e 
! loan is reissu$ 9 accordance ) ?is    
section1 & be=e ! proce$s ( su* loan are
 paid to ! private educational l5d]4    
7,d7 ,! ,secret>y %all issue ! loan z a 
,f$]al ,direct ,ref9anc$ ,private ,loan1
 :i* %all h ! same t]ms1 conditions1 &  
b5efits z a ,f$]al ,direct ,unsubsidiz$ 
,/af=d ,loan1 except z o!rwise provid$ 9

 ?is section4  7#b7 ,income requirem5ts 
,n lat] ?an #ahj days aft] ! date (     
enactm5t ( ! ,bank on ,/ud5ts ,em]g5cy  
,loan ,ref9anc+ ,act1 ! ,secret>y %all  
e/abli% eligibility requirem5ts bas$ on 
income or debt-to-income ratio t take   
into consid]ation provid+ access to     
ref9anc+ "u ?is section = borr[]s ) !   
greate/ f9ancial ne$4  7c7 ,int]e/ rate 
7#a7 ,9 g5]al ,! int]e/ rate = a ,f$]al 
,direct ,ref9anc$ ,private ,loan is--   
7,a7 9 ! case ( a ,f$]al ,direct        
,ref9anc$ ,private ,loan = a private    
education loan orig9ally issu$ =        
und]graduate po/second>y educational    
exp5ses1 a rate equal to ! rate = ,f$]al
 ,direct ,/af=d ,loans & ,f$]al ,direct 
,unsubsidiz$ ,/af=d ,loans issu$ to     
und]graduate /ud5ts = ! #ab-mon? p]iod  
beg9n+ on ,july #a1 #bjac1 & end+ on    
,june #cj1 #bjad2 &  7,b7 9 ! case ( a  
,f$]al ,direct ,ref9anc$ ,private ,loan 
= a private education loan orig9ally    
issu$ = graduate or pr(essional degree  
po/second>y educational exp5ses1 a rate 

equal to ! rate = ,f$]al ,direct        
,unsubsidiz$ ,/af=d ,loans issu$ to     
graduate or pr(essional /ud5ts = !      
#ab-mon? p]iod beg9n+ on ,july #a1      
#bjac1 & end+ on ,june #cj1 #bjad4  7#b7
 ,comb9$ und]graduate & graduate /udy   
loans ,if a ,f$]al ,direct ,ref9anc$    
,private ,loan is = a private           
educational loan orig9ally issu$ = bo?  
und]graduate & graduate or pr(essional  
po/second>y educational exp5ses1 !      
int]e/ rate %all be a rate equal to !   
rate = ,f$]al ,direct ,,plus ,loans = ! 
#ab-mon? p]iod beg9n+ on ,july #a1      
#bjac1 & end+ on ,june #cj1 #bjad4  7#c7
 ,fix$ ,rate ,! applicable rate ( int]e/
 det]m9$ "u ?is subsection = a ,f$]al   
,direct ,ref9anc$ ,private ,loan %all be
 fix$ = ! p]iod ( ! loan4  7d7 ,no      
inclusion 9 aggregate limits ,! am\nt ( 
a ,f$]al ,direct ,ref9anc$ ,private     
,loan1 or a ,f$]al ,direct ,consolidat$ 
,loan to ! ext5t su* loan 0 us$ to repay
 a ,f$]al ,direct ,ref9anc$ ,private    
,loan1 %all n be includ$ 9 calculat+ a  

borr[]'s annual or aggregate loan limits
 "u section #dbh or #dbh;,h4  7e7 ,no   
eligibility = s]vice-,relat$ repaym5t   
,not)/&+ sections #dbh,k7a77#b77;,a71   
#dbh,l7b77#b71 #dee7m77#c77;,a71 &      
#dfj7;b71 a ,f$]al ,direct ,ref9anc$    
,private ,loan1 or any ,f$]al ,direct   
,consolidation ,loan to ! ext5t su* loan
 0 us$ to repay a ,f$]al ,direct        
,ref9anc$ ,private ,loan1 %all n be     
eligible = any loan repaym5t or loan    
=giv5ess program "u section #dbh,k1     
#dbh,l1 or #dfj or = ! repaym5t plan =  
public s]vice employees "u section      
#dee7m74  7f7 ,orig9ation fee ,!        
,secret>y %all *>ge ! borr[] ( a ,f$]al 
,direct ,ref9anc$ ,private ,loan an     
orig9ation fee t equals ! orig9ation fee
 *>g$ = ,f$]al ,direct ,unsubsidiz$     
,/af=d ,loans disburs$ on ! date ^u :i* 
! ,f$]al ,direct ,ref9anc$ ,private     
,loan is issu$4  7g7 ,expiration (      
,au?ority ,! ,secret>y's au?ority to    
reissue loans "u ?is section %all expire
 on ! date t is det]m9$ 9 accordance )  

section #d ( ! ,bank on ,/ud5ts ,em]g5cy
 ,loan ,ref9anc+ ,act4  4  7c7 ,am5dm5ts
 to public s]vice repaym5t plan         
provisions ,section #dee7m7 ( ! ,high]  
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajhg;e7m77 is am5d$--  7#a7 by         
r$esignat+ p>agraphs 7#c7 & 7#d7 z      
p>agraphs 7#d7 & 7#e71 respectively2    
7#b7 by ins]t+ aft] p>agraph 7#b7 !     
foll[+3  7#c7 ,special rules = section  
#dfj;,a loans  7,a7 ,ref9anc$ ,f$]al    
,direct loans ,not)/&+ p>agraph 7#a71 9 
det]m9+ ! numb] ( mon?ly paym5ts t meet 
! requirem5ts ( su* p>agraph = an       
eligible ,f$]al ,direct ,loan reissu$ "u
 section #dfj;,a t 0 orig9ally a loan "u
 ?is "p1 ! ,secret>y %all include all   
mon?ly paym5ts made on ! orig9al loan t 
meet ! requirem5ts ( su* p>agraph4  7,b7
 ,ref9anc$ ,,ffel loans ,9 ! case ( an  
eligible ,f$]al ,direct ,loan reissu$ "u
 section #dfj;,a t 0 orig9ally a loan "u
 "p ,b1 only mon?ly paym5ts made aft] ! 
date on :i* ! loan 0 reissu$ may be     
includ$ = purposes ( p>agraph 7#a74  2 &

  7#c7 9 p>agraph 7#d77;,a7 7z          
r$esignat$ by p>agraph 7#a771 by ins]t+ 
7includ+ any ,f$]al ,direct ,/af=d      
,loan1 ,f$]al ,direct ,,plus ,loan1     
,f$]al ,direct ,unsubsidiz$ ,/af=d      
,loan1 or ,f$]al ,direct ,consolidation 
,loan reissu$ "u section #dfj;,a7 be=e !
 p]iod at ! end4  7d7 ,income-,bas$     
repaym5t ,section #dic;,c ( ! ,high]    
,education ,act ( #aife 7#bj ,u4,s4,c4  
#ajih;e7 is am5d$ by add+ at ! end !    
foll[+3  7f7 ,special rule = ref9anc$   
loans  7#a7 ,ref9anc$ ,f$]al ,direct &  
,,ffel loans ,9 calculat+ ! p]iod ( "t  
dur+ :i* a borr[] ( a loan t is reissu$ 
"u section #dfj;,a has made mon?ly      
paym5ts = purposes ( subsection 7b77#g71
 ! ,secret>y %all deem ! p]iod to       
include all mon?ly paym5ts made = !     
orig9al loan1 & all mon?ly paym5ts made 
= ! reissu$ loan1 t o!rwise meet !      
requirem5ts ( ?is section4  7#b7 ,f$]al 
,direct ,ref9anc$ ,private ,loans ,9    
calculat+ ! p]iod ( "t dur+ :i* a borr[]
 ( a ,f$]al ,direct ,ref9anc$ ,private  

,loan "u section #dfj;,b has made mon?ly
 paym5ts = purposes ( subsection        
7b77#g71 ! ,secret>y %all include only  
paym5ts--  7,a7 t are made aft] ! date (
 ! issuance ( ! ,f$]al ,direct ,ref9anc$
 ,private ,loan2 &  7,b7 t o!rwise meet 
! requirem5ts ( ?is section4  4  #c4    
,fair %>e tax on high-income taxpay]s   
7a7 ,9 g5]al ,sub*apt] ,a ( *apt] #a ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by add+ at ! end ! foll[+ new "p3      
,,vii ,fair %>e tax on high-income      
taxpay]s  ,sec4 #ei;,b4 ,fair %>e tax4  
#ei;,b4 ,fair %>e tax  7a7 ,g5]al rule  
7#a7 ,phase-9 ( tax ,9 ! case ( any     
high-income taxpay]1 !re is h]eby impos$
 = a taxable ye> 79 addition to any o!r 
tax impos$ by ?is subtitle7 a tax equal 
to ! product (--  7,a7 ! am\nt det]m9$  
"u p>agraph 7#b71 &  7,b7 a fraction 7n 
to exce$ #a7--  7i7 ! num]ator ( :i* is 
! excess (--  7,i7 ! taxpay]'s adju/$   
gross income1 ov]  7,,ii7 ! doll> am\nt 
9 effect "u subsection 7c77#a71 &  7ii7 
! d5om9ator ( :i* is ! doll> am\nt 9    

effect "u subsection 7c77#a74  7#b7     
,am\nt ( tax ,! am\nt ( tax det]m9$ "u  
?is p>agraph is an am\nt equal to !     
excess 7if any7 (--  7,a7 ! t5tative    
fair %>e tax = ! taxable ye>1 ov]  7,b7 
! excess (--  7i7 ! sum (--  7,i7 !     
regul> tax liability 7z def9$ 9 section 
#bf7;b77 = ! taxable ye>1  7,,ii7 ! tax 
impos$ by section #ee = ! taxable ye>1  
plus  7,,iii7 ! payroll tax = ! taxable 
ye>1 ov]  7ii7 ! cr$its all[able "u "p  
,,iv ( sub*apt] ,a 7o!r ?an sections    
#bg7;a71 #ca1 & #cd74  7b7 ,t5tative    
fair %>e tax ,= purposes ( ?is section--
  7#a7 ,9 g5]al ,! t5tative fair %>e tax
 = ! taxable ye> is #cj p]c5t ( ! excess
 (--  7,a7 ! adju/$ gross income ( !    
taxpay]1 ov]  7,b7 ! modifi$ *>itable   
contribution d$uction = ! taxable ye>4  
7#b7 ,modifi$ *>itable contribution     
d$uction ,= purposes ( p>agraph 7#a7--  
7,a7 ,9 g5]al ,! modifi$ *>itable       
contribution d$uction = any taxable ye> 
is an am\nt equal to ! am\nt :i* be>s ! 
same ratio to ! d$uction all[able "u    

section #agj 7section #fdb7;c7 9 ! case 
( a tru/ or e/ate7 = su* taxable ye> z--
  7i7 ! am\nt ( itemiz$ d$uctions       
all[able "u ! regul> tax 7z def9$ 9     
section #ee7 = su* taxable ye>1 det]m9$ 
aft] ! application ( section #fh1 be>s  
to  7ii7 su* am\nt1 det]m9$ be=e !      
application ( section #fh4  7,b7        
,taxpay] mu/ itemize ,9 ! case ( any    
individual :o does n elect to itemize   
d$uctions = ! taxable ye>1 ! modifi$    
*>itable contribution d$uction %all be  
z]o4  7c7 ,high-,income taxpay] ,=      
purposes ( ?is section--  7#a7 ,9 g5]al 
,! t]m high-income taxpay] means1 )     
respect to any taxable ye>1 any taxpay] 
7o!r ?an a corporation7 ) an adju/$     
gross income = su* taxable ye> 9 excess 
( #a1jjj1jjj 7#ej p]c5t ( su* am\nt 9 ! 
case ( a m>ri$ individual :o files a    
sep>ate return74  7#b7 ,inflation       
adju/m5t  7,a7 ,9 g5]al ,9 ! case ( a   
taxable ye> beg9n+ aft] #bjae1 !        
#a1jjj1jjj am\nt "u p>agraph 7#a7 %all  
be increas$ by an am\nt equal to--  7i7 

su* doll> am\nt1 multipli$ by  7ii7 !   
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> #bjad = cal5d> ye> #aiib 9   
subp>agraph 7,b7 !re(4  7,b7 ,r\nd+ ,if 
any am\nt z adju/$ "u subp>agraph 7,a7  
is n a multiple ( #aj1jjj1 su* am\nt    
%all be r\nd$ to ! next l[e/ multiple ( 
#aj1jjj4  7d7 ,payroll tax ,= purposes (
 ?is section1 ! payroll tax = any       
taxable ye> is an am\nt equal to !      
excess (--  7#a7 ! taxes impos$ on !    
taxpay] "u sections #adja1 #adaa1 #caja1
 #cbja1 & #cbaa7;a7 7to ! ext5t su*     
taxes are attributable to ! rate ( tax 9
 effect "u section #caja7 ) respect to  
su* taxable ye> or wages or comp5sation 
receiv$ dur+ ! taxable ye>1 ov]  7#b7 ! 
d$uction all[able "u section #afd7;f7 = 
su* taxable ye>4  7e7 ,special rule =   
e/ates & tru/s ,= purposes ( ?is        
section1 9 ! case ( an e/ate or tru/1   
adju/$ gross income %all be comput$ 9 ! 
mann] describ$ 9 section #fg7;e74  7f7  

,n treat$ z tax impos$ by ?is *apt] =   
c]ta9 purposes ,! tax impos$ "u ?is     
section %all n be treat$ z tax impos$ by
 ?is *apt] = purposes ( det]m9+ ! am\nt 
( any cr$it "u ?is *apt] 7o!r ?an !     
cr$it all[$ "u section #bg7;a77 or =    
purposes ( section #ee4  4  7b7 ,con=m+ 
am5dm5t ,section #bf7;b77#b7 ( !        
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by r$esignat+ subp>agraphs 7,c7 ?r\gh   
7,x7 z subp>agraphs 7,d7 ?r\gh 7,y71    
respectively1 & by ins]t+ aft]          
subp>agraph 7,b7 ! foll[+ new           
subp>agraph3  7,c7 section #ei;,b       
7relat+ to fair %>e tax71  4  7c7       
,cl]ical am5dm5t ,! table ( p>ts =      
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new item3  ,"p        
,,vii--,fair %>e tax on high-,income    
taxpay]s  4  7d7 ,effective date ,!     
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjad4  #d4 ,deficit ,neutral      
,implem5tation ( ,/ud5t ,loan ,ref9anc+ 

,programs  7a7 ,am\nt ( rev5ue ,!       
,secret>y ( ,education %all e/imate !   
am\nt t is equal to ! am\nt ( ! net     
increase 9 rev5ue receiv$ 9 ! ,treasury 
dur+ ! #aj-ye> p]iod beg9n+ on ! date ( 
enactm5t ( ! ,bank on ,/ud5ts ,em]g5cy  
,loan ,ref9anc+ ,act attributable to !  
am5dm5ts made by section #c ( ! ,bank on
 ,/ud5ts ,em]g5cy ,loan ,ref9anc+ ,act4 
7b7 ,deficit-,neutral ,t]m9ation ( !    
,ref9anc+ ,program ,! ,secret>y (       
,education %all t]m9ate ! ref9anc+      
programs c>ri$ out "u sections #dfj;,a &
 #dfj;,b ( ! ,high] ,education ,act (   
#aife on ! date t ! net co/ ( c>ry+ out 
su* ref9anc+ programs is equal to !     
am\nt ( additional rev5ue e/imat$ "u    
subsection 7a74  7c7 ,me?odology ,:5    
e/imat+ co/ & rev5ue "u ?is section1 !  
,secret>y %all utilize ! acc\nt+ me?ods 
& assumptions t are us$ by !            
,congressional ,budget ,(fice1 z ( !    
date ( enactm5t ( ?is ,act1 to make su* 
e/imations4