,i  #aae? ,,congress  #a/ ,session  ,h4 
,r4 #cjdf  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #bc1 #bjag,mr4  
,poliqu9 7= himself1 ,mr4 ,o',hall]an1  
,mr4 ,s5s5br5n]1 & ,mr4 ,rodney ,davis (
 ,ill9ois7 introduc$ ! foll[+ bill2 :i* 
0 ref]r$ to ! ,committee on ,ways &     
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to exclude employ]
 contributions to #ebi plans f gross    
income & employm5t taxes & to all[ a    
d$uction = individual contributions to  
su* plans4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,help ,all ,am]icans    
,save = ,college ,act ( #bjag4  #b4 ,tax
 treatm5t ( contributions to #ebi plans 
7a7 ,exclusion f gross income = employ] 
contributions  7#a7 ,9 g5]al ,"p ,,iii (
 sub*apt] ,b ( *apt] #a ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #aci;,f ! foll[+ new      
section3  #aci;,g4 ,employ]             
contributions to #ebi plan or ,,able    
acc\nt  7a7 ,9 g5]al ,9 ! case ( an     
individual :o is a qualifi$ acc\nt own]1

 gross income %all n include ! am\nt (  
any contribution to su* acc\nt dur+ !   
taxable ye> by ! employ] ( ! acc\nt     
own]4  7b7 ,limitation ,! am\nt exempt f
 gross income by subsection 7a7 = a     
taxable ye> %all n exce$ ! less] (--    
7#a7 an am\nt equal to ! comp5sation    
includible 9 ! individual's gross income
 = su* taxable ye>1 or  7#b7 #e1jjj     
7#aj1jjj 9 ! case ( a jo9t return7 = ea*
 dep5d5t :o ( ! taxpay] is ! designat$  
b5efici>y ( an acc\nt "u section #ebi4  
7c7 ,qualifi$ acc\nt own] ,= purposes ( 
?is section1 ! t]m qualifi$ acc\nt own] 
means-- 7#a7 9 ! case ( an acc\nt 9     
connection ) a qualifi$ tuition program1
 ! acc\nt own] ( an acc\nt ( a designat$
 b5efici>y "u section #ebi1 &  7#b7 9 ! 
case ( an ,,able acc\nt1 ! designat$    
b5efici>y 9 connection ) ! ,,able acc\nt
 "u section #ebi;,a7e77#c74  4  7#b7    
,cafet]ia plan does n include employ]   
contributions to #ebi plans or ,,able   
acc\nts ,section #abe7;d77#b7 ( su*     
,code is am5d$ by add+ at ! end !       

foll[+3  7,e7 ,exception = contributions
 to #ebi plan & ,,able acc\nts          
,subp>agraph 7,a7 %all n apply to a plan
 to ! ext5t ( am\nts :i* a cov]$        
employee may elect to h ! employ] pay z 
contributions to an acc\nt "u section   
#ebi or #ebi;,a4  4  7#c7 ,cl]ical      
am5dm5t ,! table ( sections = "p ,,iii (
 sub*apt] ,b ( *apt] #a ( su* ,code is  
am5d$ by ins]t+ aft] ! item relat+ to   
section #aci;,f ! foll[+ new item3      
,sec4 #aci;,g4 ,employ] contributions to
 #ebi plan or ,,able acc\nt4  4  7b7    
,f$]al insurance contributions  7#a7    
,wages ,section #caba7;a7 ( su* ,code is
 am5d$ by /rik+ or at ! end ( p>agraph  
7#bb71 by /rik+ ! p]iod at ! end (      
p>agraph 7#bc7 & ins]t+ 2 or1 & by      
ins]t+ aft] p>agraph 7#bc7 ! foll[+3    
7#bd7 ! am\nt ( any contribution made to
 or on behalf ( an employee if at ! "t (
 su* contribution x is reasonable to    
believe t ! employee w be able to       
exclude su* contribution f income "u    
section #aci;,g4  4  7#b7 ,net e>n+s f  

self-employm5t ,section #adjb7;a7 ( su* 
,code is am5d$ by /rik+ & at ! end (    
p>agraph 7#af71 by /rik+ ! p]iod at !   
end ( p>agraph 7#ag7 & ins]t+ 2 &1 &    
ins]t+ aft] p>agraph 7#ag7 ! foll[+3    
7#ah7 !re %all be exclud$ any           
contribution made to or on behalf ( an  
employee t is n includible 9 gross      
income ( ! employee "u section #aci;,g4 
4  7#c7 ,con=m+ am5dm5ts to ,social     
,security ,act  7,a7 ,wages ,section    
#bji7;a7 ( ! ,social ,security ,act 7#db
 ,u4,s4,c4 #dji7;a77 is am5d$ by /rik+  
or at ! end ( p>agraph 7#ai7 & ins]t+ a 
semicolon1 by /rik+ ! p]iod at ! end (  
p>agraph 7#bj7 & ins]t+ 2 or1 & by      
ins]t+ aft] p>agraph 7#bj7 ! foll[+3    
7#ba7 ,! am\nt ( any contribution made  
to or on behalf ( an employee t is n    
includible 9 gross income ( ! employee  
"u section #aci;,g ( ! ,int]nal ,rev5ue 
,code ( #aihf4  4  7,b7 ,net e>n+s f    
self-employm5t ,section #baa7;a7 ( !    
,social ,security ,act 7#db ,u4,s4,c4   
#daa7;a77 is am5d$ by /rik+ & at ! end (

 p>agraph 7#ae71 by /rik+ ! p]iod at !  
end ( p>agraph 7#af7 & ins]t+ 2 &1 &    
ins]t+ aft] p>agraph 7#af7 ! foll[+3    
7#ag7 ,!re %all be exclud$ any          
contribution made to or on behalf ( an  
employee t is n includible 9 gross      
income ( ! employee "u section #aci;,g (
 ! ,int]nal ,rev5ue ,code ( #aihf4  4   
7c7 ,railroad retirem5t ,section        
#cbca7;e7 ( su* ,code is am5d$ by add+  
at ! end ! foll[+3  7#ac7 ,employ]      
contributions to #ebi plan or ,,able    
acc\nt ,! t]m comp5sation %all n include
 any contribution made to or on behalf (
 an employee t is n includible 9 gross  
income ( ! employee "u section #aci;,g4 
4  7d7 ,d$uction = individual           
contributions  7#a7 ,9 g5]al ,"p ,,vii (
 sub*apt] ,b ( *apt] #a ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by       
r$esignat+ section #bbd z section #bbe &
 by ins]t+ aft] section #bbc ! foll[+   
new section3  #bbd4 ,contributions to   
#ebi plans & ,,able acc\nts  7a7        
,all[ance ( d$uction ,9 ! case ( an     

individual1 !re %all be all[$ z a       
d$uction = ! taxable ye> an am\nt equal 
to ! sum (--  7#a7 ! aggregate          
contributions made by su* individual to 
qualifi$ tuition programs 7z def9$ 9    
section #ebi7 dur+ su* taxable ye>1 &   
7#b7 ! aggregate contributions made by  
su* individual to ,,able acc\nts 7z     
def9$ 9 section #ebi;,a7 dur+ su*       
taxable ye>4  7b7 ,limitation ,! am\nt  
all[$ z a d$uction by subsection 7a7 = a
 taxable ye> %all n exce$ #e1jjj4  4    
7#b7 ,cl]ical am5dm5t ,! table (        
sections = "p ,,vii ( sub*apt] ,b (     
*apt] #a ( su* ,code is am5d$ by        
r$esignat+ ! item relat+ to section #bbd
 z an item relat+ to section #bbe & by  
ins]t+ aft] ! item relat+ to section    
#bbc ! foll[+ new item3  ,sec4 #bbd4    
,contributions to #ebi plans & ,,able   
acc\nts4  4  7e7 ,effective date ,!     
am5dm5ts made by ?is section %all apply 
to contributions made dur+ taxable ye>s 
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4  #c4 ,additional tax =            

di/ributions n us$ = qualifi$ purposes  
7a7 ,qualifi$ tuition programs  7#a7 ,9 
g5]al ,! fir/ s5t5ce ( section          
#ebi7;c77#f7 ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by /rik+ ! p]iod at !  
end & ins]t+ 1 except t ! rate ( su* tax
 %all be det]m9$ "u subp>agraph 7,b7 (  
?is p>agraph44  7#b7 ,rate ,p>agraph    
7#f7 ( section #ebi7;c7 ( su* ,code1 z  
am5d$ by subsection 7a71 is am5d$-- 7,a7
 by /rik+ ,! tax & ins]t+  7,a7 ,9 g5]al
 ,! tax  1 &  7,b7 by add+ at ! end !   
foll[+3  7,b7 ,rate ,= purposes (       
subp>agraph 7,a71 ! tax rate det]m9$ "u 
?is subp>agraph is ! great] (-- 7i7 #aj 
p]c5t1 &  7ii7 ! highe/ rate ( income   
tax applicable to su* p]son "u ?is      
title4  4  7b7 ,qualifi$ ,,able programs
  7#a7 ,9 g5]al ,subp>agraph 7,a7 (     
section #ebi;,a7c77#c7 ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
#aj p]c5t & ins]t+ ! applicable         
p]c5tage4  7#b7 ,applicable p]c5tage    
,p>agraph 7#c7 ( section #ebi;,a7c7 (   
su* ,code is am5d$ by add+ at ! end !   

foll[+3  7,d7 ,applicable p]c5tage ,=   
purposes ( ?is p>agraph1 ! t]m          
applicable p]c5tage means ! great] (--  
7i7 #aj p]c5t1 &  7ii7 ! highe/ rate (  
income tax applicable to su* p]son "u   
?is title4  4  7c7 ,effective date ,!   
am5dm5ts made by ?is section %all apply 
to di/ributions made dur+ taxable ye>s  
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4