,,ii #aafth ,,congress #ast ,session ,s4 #bbj ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,january #bd1 #bjai,mr4 ,gardner introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend the ,internal ,revenue #aihf to provide for distributions from #ebi programs to pay apprenticeship and qualified early education expenses1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the #ebi ,expansion and ,modernization ,act of #bjai4 #b4 ,expansion of #ebi program expenses 7a7 ,distributions from qualified tuition programs for certain expenses associated with registered apprenticeship programs ,section #ebi7;e77#c7 of the ,internal ,revenue ,code of #aihf is amended by adding at the end the following new subparagraph3 7,c7 ,certain expenses associated with registered apprenticeship programs ,the term qualified higher education expenses shall include books1 supplies1 and equipment required for the enrollment or attendance of a designated beneficiary in an apprenticeship program registered and certified with the ,secretary of ,labor under section #a of the ,national ,apprenticeship ,act 7#bi ,u4,s4,c4 #ej74 4 7b7 ,special rules for #ebi programs with respect to qualified early education expenses ,section #ebi7;e77#c7 of the ,internal ,revenue ,code of #aihf1 as amended by subsection 7c71 is amended by adding at the end the following new subparagraph3 7,d7 ,special rules permitting limited treatment of qualified early education expenses 7i7 ,in general ,except as provided in clause 7ii71 qualified early education expenses shall be treated as qualified higher education expenses4 7ii7 ,limitation ,if the aggregate amount of cash distributions from all qualified tuition programs described in subsection 7b77#a77;,a77ii7 with respect to a beneficiary for qualified early education expenses during any taxable year exceeds #aj1jjj1 such excess shall be treated for purposes of subsection 7c77#c7 as distributions in excess of the qualified higher education expenses of the beneficiary4 7iii7 ,qualified early education expenses ,for purposes of this subparagraph1 the term qualified early education expenses means expenses for providing educational and other care to a child under age #e 7including childcare provided before and after school71 as determined under the law of the ,state1 pursuant to attendance at a school or facility licensed in the ,state for such purpose4 4 7c7 ,career and technical education expenses ,section #ebi7;e77#c7 of the ,internal ,revenue ,code of #aihf1 as amended by the preceding subsections1 is amended by adding at the end the following new subparagraph3 7,e7 ,treatment of career and technical education expenses ,such term shall include expenses for books1 supplies1 and equipment required for enrollment or attendance of a designated beneficiary in a career and technical education program 7as defined in section #c of the ,carl ,d4 ,perkins ,career and ,technical ,education ,act of #bjjf 7#bj ,u4,s4,c4 #bcjb774 4 7d7 ,industry intermediary education expenses ,section #ebi7;e77#c7 of the ,internal ,revenue ,code of #aihf1 as amended by the preceding subsections1 is amended by adding at the end the following new subparagraph3 7,f7 ,treatment of industry intermediary education expenses 7i7 ,in general ,such term shall include expenses for books1 supplies1 and equipment required for enrollment or attendance of a designated beneficiary in an industry intermediary education program4 7ii7 ,industry intermediary education program ,for purposes of this subparagraph1 the term industry intermediary education program means any entity that-- 7,i7 in order to accelerate apprenticeship program development and help establish new apprenticeship partnerships at the national1 ,state1 or regional level1 serves as a conduit between an employer and an entity1 such as an industry partner1 the ,department of ,labor1 or a ,state agency responsible for workforce development programs1 7,,ii7 demonstrates a capacity to work with employers and other key partners to identify workforce trends and foster public-private funding to establish new apprenticeship programs1 and 7,,iii7 is a business1 a consortium of businesses1 a business-related nonprofit organization 7including industry associations and business federations71 a private organization functioning as a workforce intermediary for the express purpose of serving the needs of businesses 7including community-based nonprofit service providers and industry-aligned training providers71 or a consortium of any of such entities4 4 7e7 ,effective date ,the amendments made by this section shall apply to contributions made and distributions paid after ,december #ca1 #bjai4 #c4 ,employer contributions to qualified tuition programs 7a7 ,in general ,subsection 7a7 of section #acb of the ,internal ,revenue ,code of #aihf is amended by striking or at the end of paragraph 7#g71 by striking the period at the end of paragraph 7#h7 and inserting 1 or1 and by adding at the end the following new paragraph3 7#i7 qualified tuition program contributions4 4 7b7 ,qualified tuition program contributions ,section #acb of the ,internal ,revenue ,code of #aihf is amended by redesignating subsection 7o7 as subsection 7p7 and by inserting after subsection 7n7 the following new subsection3 7o7 ,qualified tuition program contributions ,for purposes of this section-- 7#a7 ,in general ,the term qualified tuition program contributions means contributions 7including matching contributions7 made by an employer directly to a qualified tuition program 7as described in section #ebi7 designated by an employee if-- 7,a7 such contribution is made to an account under such program for which the designated beneficiary is the employee or a member of the family of the employee 7within the meaning of section #ebi7;e77#b771 and 7,b7 such contribution is made in connection with a qualified payroll deduction contribution program established by the employer4 7#b7 ,qualified payroll deduction contribution program ,for purposes of this subsection1 the term qualified payroll deduction contribution program means a program established by an employer-- 7,a7 under which employees may elect to make contributions to accounts described in paragraph 7#a77;,a7 which reduce the amount of wages received directly by such employee by the amount of such contribution1 and 7,b7 which is made available on substantially the same terms to each member of a group of employees which is defined under a reasonable classification set up by the employer which does not discriminate in favor of highly compensated employees 7as defined in section #dad7q774 7#c7 ,limitation on exclusion ,the amount of qualified tuition program contributions which may be excluded from gross income under subsection 7a77#i7 with respect to any employee shall not exceed #ejj in any calendar year4 7#d7 ,inflation adjustment 7,a7 ,in general ,in the case of any taxable year beginning in a calendar year after #bjbj1 the #ejj amount contained in paragraph 7#c7 shall be increased by an amount equal to-- 7i7 such dollar amount1 multiplied by 7ii7 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 #bjai for calendar year #bjaf in subparagraph 7,a77ii7 thereof4 7,b7 ,rounding ,any increase determined under subparagraph 7,a7 shall be rounded to the nearest multiple of #be4 4 7c7 ,effective date ,the amendments made by this section shall apply to contributions made after ,december #ca1 #bjai4