,,ii  #aah? ,,congress  #a/ ,session    
,s4 #bebb  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #bf1 #bjbc,mr4   
,casey 7= himself1 ,mr4 ,wyd51 ,ms4     
,klobu*>1 ,mr4 ,s&]s1 & ,ms4 ,duckwor?7 
introduc$ ! foll[+ bill2 :i* 0 read     
twice & ref]r$ to ! ,committee on       
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to provide mat*+  
paym5ts = ,,able acc\nt contributions by
 c]ta9 individuals1 & = o!r purposes4   
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,,able ,,mat* 7,mak+ ,able a ,tool to 
,combat ,h>d%ip7 ,act4  #b4 ,f9d+s      
,congress f9ds ! foll[+3 7#a7 ,p )      
disabilities are m ?an twice z likely to
 live 9 pov]ty ?an p )\t disabilities4  
7#b7 ,h\seholds conta9+ an adult ) a    
disability t limits _! ability to "w    
requires1 on av]age1 #bh p]c5t m income 
to obta9 ! same /&>d ( liv+ z simil>    
h\seholds )\t a memb] ) a disability4   
7#c7 ,! av]age income ( h\seholds t     
include any work+-age p ) disabilities  
is #bg1ejj less ?an ! av]age h\sehold   

income ( p )\t disabilities4  7#d7 ,!   
,/eph5 ,beck1 ,jr41 ,a*iev+ a ,bett]    
,life ,exp]i5ce ,act ( #bjad provid$ =  
qualifi$ ,,able programs1 :i* provid$   
eligible p ) disabilities ! opportunity 
to op5 tax-advantag$ sav+s acc\nts )\t !
 risk ( los+ ! b5efits !y ne$ to        
p>ticipate 9 society4  7#e7 ,z ( ,m>*   
#bjbc1 !re 7 #add1jfh ,,able acc\nts op5
 9 ! ,unit$ ,/ates ) an av]age balance (
 #i1gae4  #c4 ,purposes ,! purposes (   
?is ,act are-- 7#a7 to enc\rage & assi/ 
individuals ) disabilities ) few]       
res\rces to save us+ ,,able acc\nts2    
7#b7 to increase uptake & cont9u$       
utilization ( ,,able acc\nts by p )     
disabilities1 especially ^? individuals 
receiv+ b5efits "u ! ,m$icaid program   
e/abli%$ "u title ,,xix ( ! ,social     
,security ,act & ! program = supplem5tal
 security income b5efits e/abli%$ "u    
title ,,xvi ( su* ,act2 &  7#c7 to      
provide = a ,f$]al mat* = new & exi/+   
,,able acc\nts held by individuals ) an 
annual income less ?an #bjj p]c5t ( !   

,f$]al pov]ty limit4  #d4 ,mat*+ paym5ts
 = ,,able acc\nt contributions by c]ta9 
individuals  7a7 ,9 g5]al ,sub*apt] ,b (
 *apt] #fe ( ! ,int]nal ,rev5ue ,code ( 
#aihf is am5d$ by add+ at ! end ! foll[+
 new section3  #fdcd4 ,mat*+ paym5ts =  
,,able acc\nt contributions by c]ta9    
individuals  7a7 ,9 g5]al  7#a7         
,all[ance ( cr$it ,any individual :o is 
! designat$ b5efici>y ( an ,,able acc\nt
 z ( ! la/ day ( ! taxable ye> & :o     
makes qualifi$ ,,able acc\nt            
contributions = su* taxable ye> %all be 
all[$ a cr$it = su* taxable ye> 9 an    
am\nt equal to ! applicable p]c5tage ( s
 mu* ( ! qualifi$ ,,able acc\nt         
contributions made by su* individual = !
 taxable ye> z does n exce$ #b1jjj4     
7#b7 ,paym5t ( cr$it  7,a7 ,9 g5]al ,!  
cr$it "u ?is section %all be-- 7i7      
treat$ z all[$ by subp>t ,c ( "p ,,iv ( 
sub*apt] ,a ( *apt] #a1 &  7ii7 paid by 
! ,secret>y z a contribution 7z soon z  
practicable aft] ! individual has fil$ a
 tax return mak+ a claim = su* cr$it = !

 taxable ye>7 to ! ,,able acc\nt ( !    
individual4  7,b7 ,exception ,9 ! case (
 an individual :o elects ! application (
 ?is subp>agraph & ) respect to :om !   
cr$it det]m9$ "u p>agraph 7#a7 is great]
 ?an z]o b less ?an #ej = ! taxable ye>1
 subp>agraph 7,a77ii7 %all n apply4  7b7
 ,ov]all limitation ,! am\nt ( ! cr$it  
all[$ "u ?is section ) respect to any   
individual %all n exce$ ! excess (--    
7#a7 ! am\nt 9 effect "u section        
#ebi;,a7b77#b77;,b7 = ! taxable ye>1 ov]
  7#b7 ! am\nt ( contributions made to !
 ,,able acc\nt ( ! individual = su*     
taxable ye>4  7c7 ,applicable p]c5tage  
,= purposes ( ?is section-- 7#a7 ,9     
g5]al ,except z provid$ 9 p>agraph 7#b71
 ! applicable p]c5tage is #ajj p]c5t4   
7#b7 ,phase\t ,! p]c5tage "u p>agraph   
7#a7 %all be r$uc$ 7b n bel[ z]o7 by !  
numb] ( p]c5tage po9ts :i* be>s ! same  
ratio to #ajj p]c5tage po9ts z-- 7,a7 ! 
excess (-- 7i7 ! taxpay]'s modifi$      
adju/$ gross income = su* taxable ye>1  
ov]  7ii7 ! applicable doll> am\nt1 be>s

 to  7,b7 #bj1jjj4  ,if any r$uction    
det]m9$ "u ?is p>agraph is n a :ole     
p]c5tage po9t1 su* r$uction %all be     
r\nd$ to ! next l[e/ :ole p]c5tage po9t4
  7#c7 ,applicable doll> am\nt ,!       
applicable doll> am\nt is-- 7,a7 9 !    
case ( a jo9t return1 #ef1jjj1  7,b7 9 !
 case ( a head ( h\sehold 7z def9$ 9    
section #b7;b771 #c_/d ( ! am\nt        
applicable "u subp>agraph 7,a71 &  7,c7 
9 any o!r case1 #a_/b ( ! am\nt         
applicable "u subp>agraph 7,a74  7d7    
,qualifi$ ,,able acc\nt contributions ,=
 purposes ( ?is section-- 7#a7 ,9 g5]al 
,! t]m qualifi$ ,,able acc\nt           
contributions means1 ) respect to any   
taxable ye>1 ! am\nt ( contributions    
made by ! individual to ! ,,able acc\nt 
( :i* su* individual is ! designat$     
b5efici>y4 ,su* t]m %all n include any  
am\nt attributable to a paym5t "u       
subsection 7a77#b74  7#b7 ,r$uction =   
c]ta9 di/ributions  7,a7 ,9 g5]al ,!    
qualifi$ ,,able acc\nt contributions    
det]m9$ "u p>agraph 7#a7 = a taxable ye>

 %all be r$uc$ 7b n bel[ z]o7 by !      
aggregate di/ributions receiv$ by !     
individual dur+ ! te/+ p]iod f ! ,,able 
acc\nt4  7,b7 ,te/+ p]iod ,= purposes ( 
subp>agraph 7,a71 ! te/+ p]iod1 )       
respect to a taxable ye>1 is ! p]iod :i*
 includes-- 7i7 su* taxable ye>1  7ii7 !
 #b prec$+ taxable ye>s1 &  7iii7 !     
p]iod aft] su* taxable ye> & be=e ! due 
date 7includ+ ext5sions7 = fil+ ! return
 ( tax = su* taxable ye>4  7,c7 ,except$
 di/ributions ,!re %all n be tak5 into  
acc\nt "u subp>agraph 7,a7 ! am\nt (    
di/ributions "u a qualifi$ ,,able       
program 7)9 ! mean+ ( section #ebi;,a7 t
 is equal to am\nts n includ$ 9 gross   
income ) respect to su* di/ributions "u 
section #ebi;,a7c77#a77;,b7 7relat+ to  
di/ributions = qualifi$ disability      
exp5ses74  7,d7 ,treatm5t ( di/ributions
 receiv$ by sp\se ( individual ,=       
purposes ( det]m9+ di/ributions receiv$ 
by an individual "u subp>agraph 7,a7 =  
any taxable ye>1 any di/ribution receiv$
 by ! sp\se ( su* individual %all be    

treat$ z receiv$ by su* individual if   
su* individual & sp\se file a jo9t      
return = su* taxable ye> & = ! taxable  
ye> dur+ :i* ! sp\se receives !         
di/ribution4  7e7 ,,able acc\nt ,=      
purposes ( ?is section1 ! t]m ,,able    
acc\nt has ! mean+ giv5 su* t]m "u      
section #ebi;,a4  7f7 ,o!r def9itions & 
special rules  7#a7 ,modifi$ adju/$     
gross income ,= purposes ( ?is section1 
! t]m modifi$ adju/$ gross income means 
adju/$ gross income det]m9$ )\t reg>d to
 sections #iaa1 #ica1 & #icc4  7#b7     
,errone\s cr$its  7,a7 ,9 g5]al ,if any 
contribution is errone\sly paid "u      
subsection 7a77#b71 includ+ a paym5t t  
is n made to an ,,able acc\nt1 ! am\nt (
 su* errone\s paym5t %all be treat$ z an
 und]paym5t ( tax 7o!r ?an = purposes ( 
"p ,,ii ( sub*apt] ,a ( *apt] #fh7 = !  
taxable ye> 9 :i* ! ,secret>y det]m9es !
 paym5t is errone\s4  7,b7 ,di/ribution 
( errone\s cr$its ,9 ! case ( a         
contribution to :i* subp>agraph 7,a7    
applies1 section #gb %all n apply to !  

di/ribution ( su* contribution 7& any   
income attributable !reto7 if su*       
di/ribution is receiv$ n lat] ?an ! day 
prescrib$ by law 7includ+ ext5sions (   
"t7 = fil+ ! individual's return = su*  
taxable ye>4  7#c7 ,exception f r$uction
 or (fset ,any paym5t made to any       
individual "u ?is section %all n be--   
7,a7 subject to r$uction or (fset       
pursuant to subsection 7c71 7d71 7e71 or
 7f7 ( section #fdjb or any simil>      
au?ority p]mitt+ (fset1 or  7,b7 r$uc$  
or (fset by o!r assess$ ,f$]al taxes t  
w\ld o!rwise be subject to levy or      
collection4  7g7 ,inflation adju/m5ts   
7#a7 ,9 g5]al ,9 ! case ( any taxable   
ye> beg9n+ 9 a cal5d> ye> aft] #bjbg1 ! 
#ef1jjj am\nt 9 subsection 7c77#c77;,a7 
%all be increas$ by an am\nt equal to-- 
7,a7 su* doll> am\nt1 multipli$ by  7,b7
 ! 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> #bjbf = cal5d> ye> 
#bjaf 9 subp>agraph 7,a77ii7 !re(4  7#b7

 ,r\nd+ ,any increase det]m9$ "u        
p>agraph 7#a7 %all be r\nd$ to ! ne>e/  
multiple ( #a1jjj4  4  7b7 ,treatm5t (  
,c]ta9 ,possessions  7#a7 ,paym5ts to   
possessions ) mirror code tax sy/ems ,! 
,secret>y ( ! ,treasury %all pay to ea* 
possession ( ! ,unit$ ,/ates :i* has a  
mirror code tax sy/em am\nts equal to ! 
loss 7if any7 to t possession by reason 
( ! am5dm5ts made by ?is section4 ,su*  
am\nts %all be det]m9$ by ! ,secret>y ( 
! ,treasury bas$ on in=mation provid$ by
 ! gov]nm5t ( ! respective possession4  
7#b7 ,paym5ts to o!r possessions ,!     
,secret>y ( ! ,treasury %all pay to ea* 
possession ( ! ,unit$ ,/ates :i* does n 
h a mirror code tax sy/em am\nts e/imat$
 by ! ,secret>y ( ! ,treasury z be+     
equal to ! aggregate b5efits 7if any7 t 
w\ld h be5 provid$ to resid5ts ( su*    
possession by reason ( ! am5dm5ts made  
by ?is section if a mirror code tax     
sy/em _h be5 9 effect 9 su* possession4 
,! prec$+ s5t5ce %all n apply unless !  
respective possession has a plan1 :i*   

has be5 approv$ by ! ,secret>y ( !      
,treasury1 "u :i* su* possession w      
promptly di/ribute su* paym5ts to its   
resid5ts4  7#c7 ,coord9ation ) cr$it    
all[$ aga9/ ,unit$ ,/ates income taxes  
,no cr$it %all be all[$ aga9/ ,unit$    
,/ates income taxes "u section #fdcd ( !
 ,int]nal ,rev5ue ,code ( #aihf 7z add$ 
by ?is section7 to any p]son-- 7,a7 to  
:om a cr$it is all[$ aga9/ taxes impos$ 
by ! possession by reason ( ! am5dm5ts  
made by ?is section1 or  7,b7 :o is     
eligible = a paym5t "u a plan describ$ 9
 p>agraph 7#b74  7#d7 ,mirror code tax  
sy/em ,= purposes ( ?is subsection1 !   
t]m mirror code tax sy/em means1 )      
respect to any possession ( ! ,unit$    
,/ates1 ! income tax sy/em ( su*        
possession if ! income tax liability ( !
 resid5ts ( su* possession "u su* sy/em 
is det]m9$ by ref]5ce to ! income tax   
laws ( ! ,unit$ ,/ates z if su*         
possession 7 ! ,unit$ ,/ates4  7#e7     
,treatm5t ( paym5ts ,= purposes (       
section #acbd ( title #ca1 ,unit$ ,/ates

 ,code1 ! paym5ts "u ?is subsection %all
 be treat$ 9 ! same mann] z a refund due
 f a cr$it provision ref]r$ to 9        
subsection 7b77#b7 ( su* section4  7c7  
,defici5cies ,section #fbaa7;b77#d7 ( ! 
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by /rik+ & #fdcc & ins]t+ #fdcc1 &      
#fdcd4  7d7 ,paym5t au?ority ,section   
#acbd7;b77#b7 ( title #ca1 ,unit$ ,/ates
 ,code1 is am5d$ by /rik+ or #fdcc &    
ins]t+ #fdcc1 or #fdcd4  7e7 ,con=m+    
am5dm5ts  7#a7 ,subp>t ,a ( "p ,,iv (   
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by /rik+ 
section #be;,b 7& ! item relat$ to su*  
section 9 ! table ( sections = su*      
subp>t74  7#b7 ,! table ( sections =    
sub*apt] ,b ( *apt] #fe ( su* ,code is  
am5d$ by add+ at ! end ! foll[+ new     
item3  ,sec4 #fdcd4 ,mat*+ paym5ts =    
,,able acc\nt contributions by c]ta9    
individuals4  4  7f7 ,effective date ,! 
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjbf4  #e4 ,demographic report+ ) 

respect to ,,able acc\nts  7a7 ,9 g5]al 
,section #ebi;,a7d77#a7 ( ! ,int]nal    
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new s5t5ce3 ,9        
addition to ! in=mation requir$ "u !    
prec$+ s5t5ce1 ea* (fic] or employee    
hav+ control ( ! qualifi$ ,,able program
 ( _! designee %all include 9 reports   
provid$ to ! ,secret>y demographic      
in=mation 7includ+ race1 g5d]1 &        
disability type7 relat+ to ! designat$  
b5efici>ies ( ,,able acc\nts "u !       
program44  7b7 ,effective date ,!       
am5dm5t made by ?is section %all apply  
to reports made aft] ! date ( ! enactm5t
 ( ?is section4  #f4 ,grants to promote 
use ( ,,able acc\nts & ! mat*+          
contribution cr$it  7a7 ,9 g5]al ,!     
,secret>y ( ! ,treasury 7or !           
,secret>y's delegate7 may aw>d grants to
 ,/ates to enable ,/ates to promote     
,,able acc\nts 7z def9$ 9 section       
#ebi;,a7e7 ( ! ,int]nal ,rev5ue ,code ( 
#aihf7 & mat*+ paym5ts = contributions  
to su* acc\nts 7z provid$ "u section    

#fdcd ( su* ,code1 z add$ by ?is ,act74 
7b7 ,au?orization ( appropriations ,!re 
is au?oriz$ to be appropriat$ to c>ry   
out ?is section #e1jjj1jjj = ea* (      
fiscal ye>s #bjbe ?r\gh #bjbi4