,i  #aac? ,,congress  #b;d ,session  ,h4
 ,r4 #eeed  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,septemb] #ah1 #bjad  
,mr4 ,bi%op ( ,new ,york 7= himself &   
,mr4 ,rangel7 introduc$ ! foll[+ bill2  
:i* 0 ref]r$ to ! ,committee on ,ways & 
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to p]mit          
di/ributions f #ebi acc\nts = m$ical    
exp5ses ( acc\nt own]s :o are vet]ans ) 
disability rat+s ( great] ?an #ej p]c5t4
  #a4 ,%ort title ,?is ,act may be cit$ 
z ! ,help+ ,w\nd$ ,w>riors ,cov] ,m$ical
 ,exp5ses ,act4  #b4 ,di/ributions f    
#ebi acc\nts = m$ical exp5ses ( acc\nt  
own]s :o are vet]ans ) disability rat+s 
( great] ?an #ej p]c5t  7a7 ,exemption f
 #ebi p5alty ,section #ebi7;c77#f7 ( !  
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
to read z foll[s3  7#f7 ,additional tax 
7,a7 ,9 g5]al ,! tax impos$ by section  
#ecj7;d77#d7 %all apply to any paym5t or
 di/ribution f a qualifi$ tuition       
program 9 ! same mann] z su* tax applies
 to a paym5t or di/ribution f a         

,cov]dell education sav+s acc\nt4 ,?is  
p>agraph %all n apply to any paym5t or  
di/ribution 9 any taxable ye> beg9n+    
be=e ,janu>y #a1 #bjjd1 :i* is          
includible 9 gross income b us$ =       
qualifi$ high] education exp5ses ( !    
designat$ b5efici>y4  7,b7 ,exception   
,subp>agraph 7,a7 %all n apply to any   
paym5t or di/ribution f a qualifi$      
tuition program to ! own] ( an acc\nt "u
 su* program if--  7i7 at ! "t ( su*    
paym5t or di/ribution1 ! own] ( su*     
acc\nt is a vet]an :om ! ,secret>y (    
,vet]ans ,affairs det]m9es has a        
s]vice-connect$ disability rat$ at #ej  
p]c5t or m1 &  7ii7 9 lieu ( us+ su*    
paym5t or di/ribution = qualifi$ high]  
education exp5ses1 su* paym5t or        
di/ribution is us$ = m$ical c>e 7z def9$
 9 section #bac7;d77 = su* own]4  7,c7  
,coord9ation ) m$ical exp5se d$uction ,=
 purposes ( det]m9+ ! am\nt ( ! d$uction
 "u section #bac1 any paym5t or         
di/ribution to :i* subp>agraph 7,b7     
applies %all n be treat$ z an exp5se    

paid = m$ical c>e4  4  7b7 ,exclusion f 
income ,section #gb7;e77#f7 ( ! ,int]nal
 ,rev5ue ,code ( #aihf is am5d$ to read 
z foll[s3  7#f7 ,ext5sion ( p>agraph    
7#b77;,b7 to qualifi$ tuition programs &
 ,cov]dell education sav+s acc\nts  7,a7
 ,9 g5]al ,not)/&+ any o!r provision (  
?is subsection1 p>agraph 7#b77;,b7 %all 
apply to am\nts receiv$ "u a qualifi$   
tuition program 7z def9$ 9 section      
#ebi7;b77 or "u a ,cov]dell education   
sav+s acc\nt 7z def9$ 9 section         
#ecj7;b774 ,! rule ( p>agraph 7#h77;,b7 
%all apply = purposes ( ?is p>agraph4   
7,b7 ,exception ,9 ! case ( an am\nt    
receiv$ "u a qualifi$ tuition program 7z
 def9$ 9 section #ebi7;b77 :i* is n     
subject to ! p5alty "u subp>agraph 7,a7 
( section #ebi7;c77#f7 by reason (      
subp>agraph 7,b7 !re(--  7i7 subp>agraph
 7,a7 ( ?is p>agraph %all n apply1 &    
7ii7 ! am\nt receiv$ :i*1 b = ?is       
subp>agraph1 w\ld be treat$ z income on 
! contract %all be treat$ z inve/m5t 9 !
 contract4  4  7c7 ,effective date ,!   

am5dm5ts made by ?is section %all apply 
to paym5ts & di/ributions aft] ! date ( 
! enactm5t ( ?is ,act4