,i #aacth ,,congress #ast ,session ,h4 ,r4 #ebi ,,in ,,the ,,house ,,of ,,representatives ,february #f1 #bjac ,ms4 ,jenkins 7for herself and ,mr4 ,kind7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to allow certain individuals a credit against income tax for contributions to #ebi plans1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,savings ,enhancement for ,education in ,college ,act4 #b4 ,credit for contributions to #ebi plans 7a7 ,in general ,subsection 7d7 of section #be;,b of the ,internal ,revenue ,code of #aihf 7relating to elective deferrals and ,,ira contributions by certain individuals7 is amended by redesignating paragraph 7#b7 as paragraph 7#c7 and by inserting after paragraph 7#a7 the following new paragraph3 7#b7 ,contributions to qualified tuition programs 7,a7 ,in general ,the term qualified savings contribution includes the amount of any purchase or contribution described in paragraph 7#a77;,a7 of section #ebi7;b7 to a qualified tuition program 7as defined in such section7 if-- 7i7 the taxpayer has the power to authorize distributions and otherwise administer the account1 and 7ii7 the designated beneficiary of such purchase or contribution is the taxpayer1 the taxpayer's spouse1 or an individual with respect to whom the taxpayer is allowed a deduction under section #aea4 7,b7 ,limitation based on compensation ,the amount treated as a qualified savings contribution by reason of subparagraph 7,a7 for any taxable year shall not exceed the sum of-- 7i7 the compensation 7as defined in section #bai7;f77#a77 includible in the taxpayer's gross income for the taxable year1 and 7ii7 the amount excluded from the taxpayer's gross income under section #aab 7relating to combat pay7 for such year4 7,c7 ,determination of adjusted gross income ,solely for purposes of determining the applicable percentage under subsection 7b7 which applies with respect to the amount treated as a qualified savings contribution by reason of subparagraph 7,a71 adjusted gross income 7determined without regard to this subparagraph7 shall be increased by the excess 7if any7 of-- 7i7 the social security benefits received during the taxable year 7within the meaning of section #hf71 over 7ii7 the amount included in gross income for such year under section #hf4 4 7b7 ,conforming amendments 7#a7 ,section #be;,b of such ,code is amended by striking qualified retirement savings each place it appears in the text and inserting qualified savings4 7#b7 ,the subsection heading for section #be;,b7d7 of such ,code is amended by striking retirement4 7#c7 ,subparagraph 7,a7 of section #be;,b7d77#c7 of such ,code1 as redesignated by subsection 7a71 is amended-- 7,a7 by striking paragraph 7#a7 the first place it appears and inserting paragraph 7#a7 or 7#b71 and 7,b7 by striking paragraph 7#a7 the second place it appears and inserting paragraph 7#a71 or 7#b71 as the case may be14 7#d7 ,the heading for section #be;,b of such ,code is amended by striking and ,,ira contributions and inserting 1 ,,ira contributions1 and qualified tuition program contributions4 7#e7 ,the table of sections for subpart ,a of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by striking the item relating to section #be;,b and inserting the following new item3 ,sec4 #be;,b4 ,elective deferrals1 ,,ira contributions1 and qualified tuition program contributions by certain individuals44 7c7 ,effective date ,the amendments made by this section shall apply to contributions made after ,december #ca1 #bjab1 in taxable years ending after such date4 #c4 ,exclusion from gross income for employer contributions to qualified tuition programs 7a7 ,in general ,part ,,iii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf 7relating to items specifically excluded from gross income7 is amended by inserting after section #abg the following new section3 #abg;,a4 ,employer contributions to qualified tuition programs 7a7 ,in general ,gross income of an employee does not include amounts paid by the employer as contributions to a qualified tuition program held by the employee or spouse of the employee if the contributions are made pursuant to a program which is described in subsection 7b74 7b7 ,maximum exclusion ,the amount excluded from the gross income of an employee under this section for the taxable year shall not exceed #fjj4 7c7 ,qualified tuition assistance program ,for purposes of this section1 a qualified tuition assistance program is a separate written plan of an employer for the benefit of such employer's employees-- 7#a7 under which the employer makes matching contributions to qualified tuition programs of-- 7,a7 such employees1 7,b7 their spouses1 or 7,c7 any individual with respect to whom such an employee or spouse-- 7i7 is allowed a deduction under section #aea1 and 7ii7 has the power to authorize distributions and otherwise administer such individual's account under the qualified tuition program1 and 7#b7 which meets requirements similar to the requirements of paragraphs 7#b71 7#c71 7#d71 7#e71 and 7#f7 of section #abg7;b74 7d7 ,definitions and special rules ,for purposes of this section-- 7#a7 ,qualified tuition program ,the term qualified tuition program means a qualified tuition program as defined in section #ebi7;b74 7#b7 ,employee and employer ,the terms employee and employer shall have the meaning given such terms by paragraphs 7#b7 and 7#c71 respectively1 of section #abg7;c74 7#c7 ,applicable rules ,rules similar to the rules of paragraphs 7#d71 7#e71 7#f71 and 7#g7 of section #abg7;c7 shall apply4 7e7 ,inflation adjustment 7#a7 ,in general ,in the case of any taxable year beginning in a calendar year after #bjac1 the #fjj amount contained in subsection 7b77#a7 shall be increased by an amount equal to-- 7,a7 such dollar amount1 multiplied by 7,b7 the cost-of-living adjustment determined under section #a7;f77#c7 for the calendar year in which the taxable year begins1 determined by substituting calendar year #bjab for calendar year #aiib in subparagraph 7,b7 thereof4 ,any increase determined under the preceding sentence shall be rounded to the nearest multiple of #ej4 7f7 ,cross reference ,for reporting and recordkeeping requirements1 see section #fjci;,d4 4 7b7 ,exclusion from employment taxes 7#a7 ,sections #caba7;a77#ah71 #ccjf7;b77#ac71 and #cdja7;a77#ah7 of such ,code are each amended by inserting #abg;,a1 after #abg1 each place it appears4 7#b7 ,section #cbca7;e77#f7 of such ,code is amended by striking section #abg and inserting section #abg or #abg;,a4 7c7 ,reporting and recordkeeping requirements ,section #fjci;,d7d77#a7 of such ,code is amended by inserting #abg;,a1 after #abg14 7d7 ,other conforming amendments 7#a7 ,sections #abe7;f71 #dad7n77#c77;,c71 and #dad7t77#b7 of such ,code are each amended by inserting #abg;,a1 after #abg1 each place it appears4 7#b7 ,section #acb7;j77#h7 of such ,code is amended by striking section #abg and inserting section #abg or #abg;,a4 7#c7 ,section #acig7;a77#b77;,a7 of such ,code is amended by inserting at the end the following new clause3 7iii7 ,any amount paid or incurred by an employer which is excludable from the gross income of an employee under section #abg;,a1 but only to the extent paid or incurred to a person not related to the employer4 4 7#d7 ,section #bji7;a77#ae7 of the ,social ,security ,act 7#db ,u4,s4,c4 #dji7;a77#ae77 is amended by striking or #abi and inserting 1 #abg;,a1 or #abi4 7e7 ,clerical amendment ,the table of sections for part ,,iii of subchapter ,b of chapter #a of such ,code is amended by inserting after the item relating to section #abg the following new item3 ,sec4 #abg;,a4 ,employer contributions to qualified tuition programs44 7f7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4