S. 5069 — Introduced in Senate

II 116th CONGRESS 2d Session S. 5069 IN THE SENATE OF THE UNITED STATES December 18, 2020Ms. Cortez Masto 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 Upward Mobility Enhancement 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 to read as follows: (2) Maximum exclusion (A) In general This section shall apply only to the first $11,500 of educational assistance furnished to an individual during a calendar year. (B) Inflation adjustment In the case of any calendar year after 2021, the $11,500 amount in subparagraph (A) 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 2020 for calendar year 2016 in subparagraph (A)(ii) thereof. If any increase determined under this subparagraph is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2020.