,,ii ,calendar ,no4 #ig #aadth ,,congress #ast ,session ,s4 #cce ,report ,no4 #aad-ef ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,february #b1 #bjae,mr4 ,grassley 7for himself1 ,mr4 ,casey1 ,mr4 ,burr1 ,mr4 ,warner1 ,mr4 ,roberts1 ,mr4 ,cardin1 ,mr4 ,scott1 ,ms4 ,ayotte1 ,mr4 ,isakson1 ,mr4 ,mc,connell1 ,ms4 ,collins1 ,mr4 ,schumer1 ,mrs4 ,fischer1 ,mr4 ,gardner1 ,mr4 ,moran1 ,mr4 ,wicker1 ,mr4 ,king1 ,mr4 ,portman1 ,mr4 ,toomey1 and ,ms4 ,murkowski7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,may #ba1 #bjae,reported by ,mr4 ,hatch1 with an amendment,strike out all after the enacting clause and insert the part printed in italic ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to improve #ebi plans4 #a4 ,computer technology and equipment allowed as a qualified higher education expense for section #ebi accounts 7a7 ,made permanent ,clause 7iii7 of section #ebi7;e77#c77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking in #bjji or #bjaj4 7b7 ,only for use primarily by the beneficiary ,clause 7iii7 of section #ebi7;e77#c77;,a7 of such ,code is amended by striking used by the beneficiary and the beneficiary's family and inserting used primarily by the beneficiary4 7c7 ,effective date ,the amendments made by this section shall apply to expenses paid or incurred after ,december #ca1 #bjad4 #b4 ,elimination of distribution aggregation requirements 7a7 ,in general ,clause 7ii7 of section #ebi7;c77#c77;,d7 of the ,internal ,revenue ,code of #aihf is amended by inserting before the comma at the end the following3 1 except for purposes of calculating the earnings portion of any distribution44 7b7 ,effective date ,the amendment made by this section shall apply to distributions after ,december #ca1 #bjad4 #c4 ,contribution of amounts previously distributed in case of withdrawal from school 7a7 ,in general ,paragraph 7#c7 of section #ebi7;c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,e7 ,special rule for contributions relating to withdrawal from school ,in the case of a beneficiary who receives a refund of any qualified higher education expenses from an eligible educational institution in connection with withdrawal from enrollment at such institution1 subparagraph 7,a7 shall not apply to that portion of any distribution for the taxable year which is recontributed to a qualified tuition program of which such individual is a beneficiary1 but only to the extent such recontribution is made not later than #fj days after the date of such refund and does not exceed the refunded amount4 4 7b7 ,effective date ,the amendment made by this section shall apply with respect to distributions after ,december #ca1 #bjad4 #a4 ,findings and purpose 7a7 ,findings ,congress finds the following3 7#a7 ,when the ,economic ,growth and ,tax ,relief ,reconciliation ,act of #bjja became law1 the tax treatment of section #ebi college savings plans was changed so that qualified distributions were no longer taxed as income4 ,the favorable tax treatment of college savings plans was made permanent with the passage of the ,pension ,protection ,act of #bjjf4 7#b7 ,section #ebi college savings plans empower middle-class families to accumulate savings to offset the rising costs of attending college4 7#c7 ,the latest data from the ,college ,savings ,plan ,network shows that there are #aa4hc million #ebi accounts open throughout all #ej states1 which represent #bdd4e billion in total assets4 ,the average #ebi account size is #bj1fga4 7#d7 ,states that sponsor #ebi college savings plans have taken steps to ensure these plans are a tool that all families can use to save for college1 including setting minimum contributions as low as #be per month to encourage participation by families of all income levels4 7#e7 ,the ,president's fiscal year #bjaf ,budget proposes raising taxes by taxing certain future distributions made from #ebi college savings plans4 7#f7 ,the tax proposed by the ,president would discourage the use of #ebi college savings plans1 requiring families and students to take on more debt4 7#g7 ,purchase of a computer represents a significant higher education expense and therefore should be eligible for qualified distributions under #ebi college savings plans4 7b7 ,purpose ,it is the purpose of this ,act to-- 7#a7 enact policies that strengthen #ebi college savings plans2 and 7#b7 make #ebi plans more modern1 consumer-friendly1 and responsive to the realities faced by students today4 #b4 ,computer technology and equipment permanently allowed as a qualified higher education expense for section #ebi accounts 7a7 ,in general ,section #ebi7;e77#c77;,a77iii7 of the ,internal ,revenue ,code of #aihf is amended to read as follows3 7iii7 expenses for the purchase of computer or peripheral equipment 7as defined in section #afh7;i77#b77;,b771 computer software 7as defined in section #aig7;e77#c77;,b771 or ,internet access and related services1 if such equipment1 software1 or services are to be used primarily by the beneficiary during any of the years the beneficiary is enrolled at an eligible educational institution4 4 7b7 ,effective date ,the amendment made by this section shall apply to taxable years beginning after ,december #ca1 #bjad4 #c4 ,elimination of distribution aggregation requirements 7a7 ,in general ,section #ebi7;c77#c7 of the ,internal ,revenue ,code of #aihf is amended by striking subparagraph 7,d74 7b7 ,effective date ,the amendment made by this section shall apply to distributions after ,december #ca1 #bjad4 #d4 ,recontribution of refunded amounts 7a7 ,in general ,section #ebi7;c77#c7 of the ,internal ,revenue ,code of #aihf1 as amended by section #c1 is amended by adding at the end the following new subparagraph3 7,d7 ,special rule for contributions of refunded amounts ,in the case of a beneficiary who receives a refund of any qualified higher education expenses from an eligible educational institution1 subparagraph 7,a7 shall not apply to that portion of any distribution for the taxable year which is recontributed to a qualified tuition program of which such individual is a beneficiary1 but only to the extent such recontribution is made not later than #fj days after the date of such refund and does not exceed the refunded amount4 4 7b7 ,effective date 7#a7 ,in general ,the amendment made by this section shall apply with respect to refunds of qualified higher education expenses after ,december #ca1 #bjad4 7#b7 ,transition rule ,in the case of a refund of qualified higher education expenses received after ,december #ca1 #bjad1 and before the date of the enactment of this ,act1 section #ebi7;c77#c77;,d7 of the ,internal ,revenue ,code of #aihf 7as added by this section7 shall be applied by substituting not later than #fj days after the date of the enactment of this subparagraph for not later than #fj days after the date of such refund4 ,may #ba1 #bjae,reported with an amendment