,i #aafth ,,congress #ast ,session ,h4 ,r4 #hih ,,in ,,the ,,house ,,of ,,representatives ,january #cj1 #bjai,mr4 ,kilmer 7for himself1 ,mr4 ,thompson of ,pennsylvania1 ,mr4 ,peters1 ,mr4 ,fitzpatrick1 ,mr4 ,posey1 ,miss ,rice of ,new ,york1 ,mrs4 ,luria1 and ,ms4 ,kuster of ,new ,hampshire7 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 provide for lifelong learning accounts1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,skills ,investment ,act of #bjai4 #b4 ,coverdell lifelong learning accounts 7a7 ,in general 7#a7 ,renaming of ,coverdell education savings accounts ,section #ecj of the ,internal ,revenue ,code of #aihf is amended-- 7,a7 by striking ,coverdell education savings account each place it appears and inserting ,coverdell lifelong learning account2 and 7,b7 by striking ,coverdell education savings accounts in the heading and inserting ,coverdell lifelong learning accounts4 7#b7 ,conforming amendments 7,a7 ,section #bf7;b77#b77;,e7 of the ,internal ,revenue ,code of #aihf is amended by striking ,coverdell education savings accounts and inserting ,coverdell lifelong learning accounts4 7,b7 ,section #gb7;e77#i7 of such ,code is amended-- 7i7 by striking ,coverdell education savings account and inserting ,coverdell lifelong learning account2 and 7ii7 by striking ,coverdell education savings account in the heading and inserting ,coverdell lifelong learning account4 7,c7 ,section #ace7;c77#b77;,c7 of such ,code is amended-- 7i7 by striking ,coverdell education savings account and inserting ,coverdell lifelong learning account2 and 7ii7 by striking ,coverdell education savings account in the heading and inserting ,coverdell lifelong learning account4 7,d7 ,section #djh;,a7e77#b77;,a77ii7 of such ,code is amended by striking ,coverdell education savings account and inserting ,coverdell lifelong learning account4 7,e7 ,section #ebi7;c7 of such ,code is amended-- 7i7 by striking ,coverdell education savings accounts in the heading of paragraph 7#c77;,b77vi7 and inserting ,coverdell lifelong learning account2 and 7ii7 by striking an ,coverdell education savings account in paragraph 7#f7 and inserting a ,coverdell lifelong learning account4 7,f7 ,section #hgg;,a7e77#b7 of such ,code is amended by striking ,coverdell education savings account and inserting ,coverdell lifelong learning account4 7,g7 ,section #digc of such ,code is amended-- 7i7 by striking ,coverdell education savings account each place it appears in subsections 7a77#d7 and 7e77#b77;,a7 and inserting ,coverdell lifelong learning account2 7ii7 by striking ,coverdell education savings accounts in subsection 7e77#a7 and inserting ,coverdell lifelong learning accounts2 and 7iii7 by striking ,coverdell education savings accounts in the heading of subsection 7e7 and inserting ,coverdell lifelong learning account4 7,h7 ,section #dige of such ,code is amended-- 7i7 by striking ,coverdell education savings account each place it appears in subsections 7c77#e7 and 7e77#a77;,f7 and inserting ,coverdell lifelong learning account2 and 7ii7 by striking ,coverdell education savings accounts in the heading of subsection 7c77#e7 and inserting ,coverdell lifelong learning accounts4 7,i7 ,section #ffic7;a77#b77;,f7 of such ,code is amended by striking ,coverdell education savings accounts and inserting ,coverdell lifelong learning accounts4 7,j7 ,the table of sections for part ,,viii of subchapter ,f of chapter #a of such ,code is amended by striking ,coverdell education savings accounts and inserting ,coverdell lifelong learning accounts4 7#c7 ,treatment of existing accounts ,for purposes of section #ecj7;b77#a7 of the ,internal ,revenue ,code of #aihf1 any account established before ,january #a1 #bjai1 and designated as a ,coverdell education savings account shall be deemed to have been designated as a ,coverdell lifelong learning account4 7b7 ,expanded use of accounts 7#a7 ,eligible expenses 7,a7 ,in general ,section #ecj7;b77#b77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking and at the end of clause 7i71 by striking the period at the end of clause 7ii7 and inserting 1 and1 and by adding at the end the following new clause3 7iii7 qualified educational or skill development expenses 7as defined in paragraph 7#e774 4 7,b7 ,qualified educational or skill development expenses ,section #ecj7;b7 of such ,code is amended by adding at the end the following new paragraph3 7#e7 ,qualified educational or skill development expenses ,the term qualified educational or skill development expenses means-- 7,a7 expenses paid or incurred-- 7i7 after the beneficiary attains age #af1 and 7ii7 for participation or enrollment of the beneficiary in services or activities that are-- 7,i7 training services described in section #acd7;c77#c77;,d7 of the ,workforce ,innovation and ,opportunity ,act 7#bi ,u4,s4,c4 #cagd7;c77#c77;,d77 that are offered by a provider included on the list of eligible providers of training services described in section #abb of such ,act 7#bi ,u4,s4,c4 #caeb71 7,,ii7 career and technical education activities defined in section #c of the ,carl ,d4 ,perkins ,career and ,technical ,education ,act of #bjjf 7#bj ,u4,s4,c4 #bcjb7 that are offered through an eligible institution 7as defined in such section71 7,,iii7 career services described in clauses 7iii71 7iv71 and 7xi7 of section #acd7;c77#b77;,a7 of the ,workforce ,innovation and ,opportunity ,act 7#bi ,u4,s4,c4 #cagd7;c77#b77;,a77 that are provided by providers eligible under section #acd7;c77#b77;,c7 of such ,act1 7,,iv7 youth activities described in section #abi7;c77#b7 of the ,workforce ,innovation and ,opportunity ,act 7#bi ,u4,s4,c4 #cafd7;c77#b77 that are provided by eligible providers of youth workforce investment activities under section #abc of such ,act1 or 7,v7 adult education and literacy activities1 as defined in section #bjc of the ,adult ,education and ,family ,literacy ,act 7#bi ,u4,s4,c4 #cbgb71 that are provided by eligible providers of adult education and literacy activities under section #bca of such ,act 7#bi ,u4,s4,c4 #ccba71 7,b7 expenses for transportation required for or provided by any of the services or activities described in subparagraph 7,a71 7,c7 expenses for testing necessary for enrollment in1 or certification in connection with1 services or activities described in subparagraph 7,a71 or 7,d7 expenses for the purchase of any computer technology or equipment 7as defined in section #agj7;e77#f77;,f77i77 or internet access and related services1 if such technology1 equipment1 or services are to be used by the beneficiary for services or activities described in subparagraph 7,a7 during any of the years the beneficiary is participating in or enrolled in any of the services or activities described in subparagraph 7,a74 4 7c7 ,modification of rules relating to age restrictions and contributions 7#a7 #aj1jjj account limit after age #cj 7,a7 ,in general ,subparagraph 7,e7 of section #ecj7;b77#a7 of the ,internal ,revenue ,code of #aihf is amended by inserting in excess of #aj1jjj after any balance to the credit of the designated beneficiary4 7,b7 ,contribution limit ,paragraph 7#a7 of section #ecj7;b77#a7 of such ,code is amended by striking or at the end of clause 7ii71 by striking the period at the end of clause 7iii7 and inserting 1 or1 and by adding at the end the following new clause3 7iv7 in the case of a beneficiary who is over the age of #cj1 if such contribution would result in the balance of the account exceeding #aj1jjj4 4 7#b7 ,increased age limit for contributions ,clause 7ii7 of section #ecj7;b77#a77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking age #ah and inserting age #gj4 7#c7 ,increased contribution limitation for individuals over age #cj 7,a7 ,in general ,section #ecj7;b77#a77;,a77iii7 of the ,internal ,revenue ,code of #aihf is amended by inserting 7#d1jjj in the case of an account the designated beneficiary of which has attained age of #cj before the end of the taxable year7 after #b1jjj4 7,b7 ,conforming amendment ,section #digc7;e77#a77;,a7 of such ,code is amended by striking #b1jjj and inserting the limitation applicable under section #ecj7;b77#a77;,a77iii74 7#d7 ,no change in beneficiary after age #cj ,paragraph 7#f7 of section #ecj7;d7 of the ,internal ,revenue ,code of #aihf is amended by striking shall not be treated as a distribution for purposes of paragraph 7#a7 if the new beneficiary and inserting shall not be treated as a distribution for purposes of paragraph 7#a7 if-- 7,a7 the old beneficiary has not attained age #cj before the date of the change in beneficiary1 and 7,b7 the new beneficiary 4 7d7 ,credit for employer contributions 7#a7 ,in general ,subpart ,d of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new section3 #de,t4 ,employee educational skills and development expenses 7a7 ,general rule ,for purposes of section #ch1 the employee educational skills and development contribution credit determined under this section for any taxable year is #be percent of the nonelective contributions made by the taxpayer during the taxable year to a ,coverdell lifelong learning account 7as defined in section #ecj7;b77 the designated beneficiary of which is an employee of the taxpayer4 7b7 ,special rules and definitions ,for purposes of this section-- 7#a7 ,employee 7,a7 ,certain employees excluded ,the term employee shall not include-- 7i7 an employee within the meaning of section #dja7;c77#a71 7ii7 any #b-percent shareholder 7as defined in section #acgb7;b77 of an ,s corporation1 7iii7 any #e-percent owner 7as defined in section #daf7;i77#a77;,b77i77 of taxpayer1 or 7iv7 any individual who bears any of the relationships described in subparagraphs 7,a7 through 7,g7 of section #aeb7;d77#b7 to1 or is a dependent described in section #aeb7;d77#b77;,h7 of1 an individual described in clause 7i71 7ii71 or 7iii74 7,b7 ,leased employees ,the term employee shall include a leased employee within the meaning of section #dad7n74 7#b7 ,nonelective contribution ,the term nonelective contribution means an employer contribution other than an employer contribution pursuant to a salary reduction arrangement4 7#c7 ,aggregation and other rules made applicable 7,a7 ,aggregation rules ,all employers treated as a single employer under subsection 7b71 7c71 7m71 or 7o7 of section #dad shall be treated as a single employer for purposes of this section4 7,b7 ,other rules ,rules similar to the rules of subsections 7c71 7d71 and 7e7 of section #eb shall apply4 4 7#b7 ,credit treated as part of general business credit ,section #ch7;b7 of such ,code is amended by striking plus at the end of paragraph 7#ca71 by striking the period at the end of paragraph 7#cb7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cc7 the employee educational skills and development contribution credit determined under section #de,t7a74 4 7#c7 ,clerical amendment ,the table of sections for subpart ,d of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #de,t4 ,employee educational skills and development expenses4 4 7e7 ,allowance of deduction for beneficiary 7#a7 ,in general ,part ,,viii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by redesignating section #bbd as section #bbe and by inserting after section #bbc the following new section3 #bbd4 ,coverdell ,lifelong learning account contributions 7a7 ,in general ,in the case of an individual who-- 7#a7 is the designated beneficiary of a ,coverdell lifelong learning account 7as defined in section #ecj7;b77#a771 and 7#b7 has attained the age of #ah before the close of the taxable year1 there shall be allowed as a deduction an amount equal to the contributions for the taxable year by or on behalf of such individual to the account described in paragraph 7#a74 7b7 ,recontributed amounts ,no deduction shall be allowed under this section with respect to a rollover contribution described in section #ecj7;d77#e74 4 7#b7 ,increase in additional tax 7,a7 ,increase 7i7 ,in general ,section #ecj7;d77#d77;,a7 of the ,internal ,revenue ,code of #aihf is amended by striking #aj percent and inserting #bj percent4 7ii7 ,conforming amendment ,section #ebi7;c77#f7 of such ,code is amended by inserting 1 except that #aj percent shall be substituted for #bj percent in subparagraph 7,a7 thereof before the period at the end of the first sentence4 7,b7 ,modification of tax treatment of deductible contributions ,paragraph 7#a7 of section #ecj7;d7 is amended to read as follows3 7#a7 ,inclusion in gross income 7,a7 ,in general ,any distribution shall be includible in the gross income of the distributee as follows3 7i7 ,so much of the distribution as is equal to or less than the deductible amount shall be fully included in gross income4 7ii7 ,so much of the distribution which exceeds the deductible amount shall be included in gross income in the manner as provided in section #gb 7determined by applying such section without regard to any amounts to which clause 7i7 applies74 7,b7 ,deductible amount ,for purposes of this paragraph1 the term deductible amount means the excess of-- 7i7 the sum of contributions to the account for which a deduction was allowed under section #bbd in such year and any preceding taxable year1 over 7ii7 the amount of distributions to which subparagraph 7,a77i7 applied to in any preceding taxable year4 4 7#c7 ,clerical amendment ,the table of sections for part ,,viii of subchapter ,b of chapter #a of such ,code is amended by redesignating the item relating to section #bbd as relating to section #bbe and by inserting after the item relating to section #bbc the following new item3 ,sec4 #bbd4 ,coverdell lifelong learning account contributions4 4 7f7 ,effective date 7#a7 ,in general ,except as otherwise provided in this subsection1 the amendments made by this section shall take effect on ,january #a1 #bjai4 7#b7 ,eligible expenses ,the amendments made by subsection 7b7 shall apply to distributions made after ,december #ca1 #bjai4 7#c7 ,contributions ,the amendments made by paragraphs 7#a77;,b7 and 7#b7 of subsection 7c7 shall apply to contributions made after ,december #ca1 #bjai4 7#d7 ,employer contribution credit and beneficiary deductions ,the amendments made by subsections 7d7 and 7e7 shall apply to taxable years beginning after ,december #ca1 #bjai4