S. 3916 — Introduced in Senate

II 116th CONGRESS 2d Session S. 3916 IN THE SENATE OF THE UNITED STATES June 8, 2020Mrs. Loeffler introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to increase the exclusion for educational assistance programs. 1. Short title This Act may be cited as the American Workforce Development Act. 2. Increase in exclusion for educational assistance programs (a) In general Paragraph (2) of section 127(a) of the Internal Revenue Code of 1986 is amended by striking $5,250 each place it appears in the text and the heading and inserting $11,500. (b) Inflation adjustment Section 127(c) of such Code is amended by adding at the end the following new paragraph: (8) Inflation adjustment (A) In general In the case of any calendar year after 2019, each dollar amount in subsection (a)(2) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins by substituting calendar year 2017 for calendar year 2016 in subparagraph (A)(ii) thereof. (B) Rounding If any increase determined under subparagraph (A) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2019.