,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #bbj  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,janu>y #bd1 #bjai,mr4 
,g>dn] introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue #aihf to provide = di/ributions 
f #ebi programs to pay appr5tice%ip &   
qualifi$ e>ly education exp5ses1 & = o!r
 purposes4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! #ebi ,expansion &       
,mod]nization ,act ( #bjai4  #b4        
,expansion ( #ebi program exp5ses  7a7  
,di/ributions f qualifi$ tuition        
programs = c]ta9 exp5ses associat$ )    
regi/]$ appr5tice%ip programs ,section  
#ebi7;e77#c7 ( ! ,int]nal ,rev5ue ,code 
( #aihf is am5d$ by add+ at ! end !     
foll[+ new subp>agraph3  7,c7 ,c]ta9    
exp5ses associat$ ) regi/]$ appr5tice%ip
 programs ,! t]m qualifi$ high]         
education exp5ses %all include books1   
supplies1 & equipm5t requir$ = !        
enrollm5t or att5dance ( a designat$    
b5efici>y 9 an appr5tice%ip program     

regi/]$ & c]tifi$ ) ! ,secret>y ( ,labor
 "u section #a ( ! ,national            
,appr5tice%ip ,act 7#bi ,u4,s4,c4 #ej74 
4  7b7 ,special rules = #ebi programs ) 
respect to qualifi$ e>ly education      
exp5ses ,section #ebi7;e77#c7 ( !       
,int]nal ,rev5ue ,code ( #aihf1 z am5d$ 
by subsection 7c71 is am5d$ by add+ at !
 end ! foll[+ new subp>agraph3  7,d7    
,special rules p]mitt+ limit$ treatm5t (
 qualifi$ e>ly education exp5ses  7i7 ,9
 g5]al ,except z provid$ 9 clause 7ii71 
qualifi$ e>ly education exp5ses %all be 
treat$ z qualifi$ high] education       
exp5ses4  7ii7 ,limitation ,if !        
aggregate am\nt ( ca% di/ributions f all
 qualifi$ tuition programs describ$ 9   
subsection 7b77#a77;,a77ii7 ) respect to
 a b5efici>y = qualifi$ e>ly education  
exp5ses dur+ any taxable ye> exce$s     
#aj1jjj1 su* excess %all be treat$ =    
purposes ( subsection 7c77#c7 z         
di/ributions 9 excess ( ! qualifi$ high]
 education exp5ses ( ! b5efici>y4  7iii7
 ,qualifi$ e>ly education exp5ses ,=    

purposes ( ?is subp>agraph1 ! t]m       
qualifi$ e>ly education exp5ses means   
exp5ses = provid+ educational & o!r c>e 
to a *ild "u age #e 7includ+ *ildc>e    
provid$ be=e & aft] s*ool71 z det]m9$ "u
 ! law ( ! ,/ate1 pursuant to att5dance 
at a s*ool or facility lic5s$ 9 ! ,/ate 
= su* purpose4  4  7c7 ,c>e] & te*nical 
education exp5ses ,section #ebi7;e77#c7 
( ! ,int]nal ,rev5ue ,code ( #aihf1 z   
am5d$ by ! prec$+ subsections1 is am5d$ 
by add+ at ! end ! foll[+ new           
subp>agraph3  7,e7 ,treatm5t ( c>e] &   
te*nical education exp5ses ,su* t]m %all
 include exp5ses = books1 supplies1 &   
equipm5t requir$ = enrollm5t or         
att5dance ( a designat$ b5efici>y 9 a   
c>e] & te*nical education program 7z    
def9$ 9 section #c ( ! ,c>l ,d4 ,p]k9s  
,c>e] & ,te*nical ,education ,act (     
#bjjf 7#bj ,u4,s4,c4 #bcjb774  4  7d7   
,indu/ry int]m$i>y education exp5ses    
,section #ebi7;e77#c7 ( ! ,int]nal      
,rev5ue ,code ( #aihf1 z am5d$ by !     
prec$+ subsections1 is am5d$ by add+ at 

! end ! foll[+ new subp>agraph3  7,f7   
,treatm5t ( indu/ry int]m$i>y education 
exp5ses  7i7 ,9 g5]al ,su* t]m %all     
include exp5ses = books1 supplies1 &    
equipm5t requir$ = enrollm5t or         
att5dance ( a designat$ b5efici>y 9 an  
indu/ry int]m$i>y education program4    
7ii7 ,indu/ry int]m$i>y education       
program ,= purposes ( ?is subp>agraph1 !
 t]m indu/ry int]m$i>y education program
 means any entity t-- 7,i7 9 ord] to    
accel]ate appr5tice%ip program          
developm5t & help e/abli% new           
appr5tice%ip p>tn]%ips at ! national1   
,/ate1 or regional level1 s]ves z a     
conduit betwe5 an employ] & an entity1  
su* z an indu/ry p>tn]1 ! ,dep>tm5t (   
,labor1 or a ,/ate ag5cy responsible =  
work=ce developm5t programs1  7,,ii7    
demon/rates a capacity to "w ) employ]s 
& o!r key p>tn]s to id5tify work=ce     
tr5ds & fo/] public-private fund+ to    
e/abli% new appr5tice%ip programs1 &    
7,,iii7 is a bus9ess1 a consortium (    
bus9esses1 a bus9ess-relat$ nonpr(it    

organization 7includ+ indu/ry           
associations & bus9ess f$]ations71 a    
private organization function+ z a      
work=ce int]m$i>y = ! express purpose ( 
s]v+ ! ne$s ( bus9esses 7includ+        
community-bas$ nonpr(it s]vice provid]s 
& indu/ry-align$ tra9+ provid]s71 or a  
consortium ( any ( su* entities4  4  7e7
 ,effective date ,! am5dm5ts made by ?is
 section %all apply to contributions    
made & di/ributions paid aft] ,decemb]  
#ca1 #bjai4  #c4 ,employ] contributions 
to qualifi$ tuition programs  7a7 ,9    
g5]al ,subsection 7a7 ( section #acb ( !
 ,int]nal ,rev5ue ,code ( #aihf is am5d$
 by /rik+ or at ! end ( p>agraph 7#g71  
by /rik+ ! p]iod at ! end ( p>agraph    
7#h7 & ins]t+ 1 or1 & by add+ at ! end !
 foll[+ new p>agraph3  7#i7 qualifi$    
tuition program contributions4  4  7b7  
,qualifi$ tuition program contributions 
,section #acb ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by r$esignat+         
subsection 7o7 z subsection 7p7 & by    
ins]t+ aft] subsection 7n7 ! foll[+ new 

subsection3  7o7 ,qualifi$ tuition      
program contributions ,= purposes ( ?is 
section-- 7#a7 ,9 g5]al ,! t]m qualifi$ 
tuition program contributions means     
contributions 7includ+ mat*+            
contributions7 made by an employ]       
directly to a qualifi$ tuition program  
7z describ$ 9 section #ebi7 designat$ by
 an employee if--  7,a7 su* contribution
 is made to an acc\nt "u su* program =  
:i* ! designat$ b5efici>y is ! employee 
or a memb] ( ! family ( ! employee 7)9 !
 mean+ ( section #ebi7;e77#b771 &  7,b7 
su* contribution is made 9 connection ) 
a qualifi$ payroll d$uction contribution
 program e/abli%$ by ! employ]4  7#b7   
,qualifi$ payroll d$uction contribution 
program ,= purposes ( ?is subsection1 ! 
t]m qualifi$ payroll d$uction           
contribution program means a program    
e/abli%$ by an employ]-- 7,a7 "u :i*    
employees may elect to make             
contributions to acc\nts describ$ 9     
p>agraph 7#a77;,a7 :i* r$uce ! am\nt (  
wages receiv$ directly by su* employee  

by ! am\nt ( su* contribution1 &  7,b7  
:i* is made available on sub/antially ! 
same t]ms to ea* memb] ( a gr\p (       
employees :i* is def9$ "u a reasonable  
classification set up by ! employ] :i*  
does n discrim9ate 9 favor ( highly     
comp5sat$ employees 7z def9$ 9 section  
#dad7q774  7#c7 ,limitation on exclusion
 ,! am\nt ( qualifi$ tuition program    
contributions :i* may be exclud$ f gross
 income "u subsection 7a77#i7 ) respect 
to any employee %all n exce$ #ejj 9 any 
cal5d> ye>4  7#d7 ,inflation adju/m5t   
7,a7 ,9 g5]al ,9 ! case ( any taxable   
ye> beg9n+ 9 a cal5d> ye> aft] #bjbj1 ! 
#ejj am\nt conta9$ 9 p>agraph 7#c7 %all 
be increas$ by an am\nt equal to--  7i7 
su* doll> am\nt1 multipli$ by  7ii7 !   
co/-(-liv+ adju/m5t det]m9$ "u section  
#a7;f77#c7 = ! cal5d> ye> 9 :i* !       
taxable ye> beg9s1 det]m9$ by sub/itut+ 
cal5d> ye> #bjai = cal5d> ye> #bjaf 9   
subp>agraph 7,a77ii7 !re(4  7,b7 ,r\nd+ 
,any increase det]m9$ "u subp>agraph    
7,a7 %all be r\nd$ to ! ne>e/ multiple (

 #be4  4  7c7 ,effective date ,!        
am5dm5ts made by ?is section %all apply 
to contributions made aft] ,decemb] #ca1
 #bjai4