,i  #aai? ,,congress  #b;d ,session  ,h4
 ,r4 #gibb  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,m>* #ab1 #bjbf,mr4   
,smi? ( ,nebraska 7= himself1 ,mr4      
,davis ( ,ill9ois1 & ,mr4 ,moran7       
introduc$ ! foll[+ bill2 :i* 0 ref]r$ to
 ! ,committee on ,ways & ,means  ,a     
,,bill  ,to am5d ! ,int]nal ,rev5ue     
,code ( #aihf to provide a cr$it to     
c]ta9 small employ]s = ! />tup co/s (   
dep5d5t c>e flexible sp5d+ plans4  #a4  
,%ort title ,?is ,act may be cit$ z !   
,small ,bus9ess ,dep5d5t ,c>e ,,fsa     
,opportunity ,act4  #b4 ,small employ]  
dep5d5t c>e flexible sp5d+ plan />tup   
co/s  7a7 ,9 g5]al ,subp>t ,d ( "p ,,iv 
( sub*apt] ,a ( *apt] #a ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ by add+  
at ! end ! foll[+ new section3          
#de;,,bb4 ,small employ] dep5d5t c>e    
flexible sp5d+ plan />tup co/s  7a7 ,9  
g5]al ,= purposes ( section #ch1 9 !    
case ( an eligible employ]1 ! small     
employ] dep5d5t c>e flexible sp5d+ plan 
/>tup co/ cr$it det]m9$ "u ?is section =

 any taxable ye> is an am\nt equal to ! 
qualifi$ />tup co/s paid or incurr$ by !
 taxpay] dur+ ! taxable ye>4  7b7 ,doll>
 limitation ,! am\nt ( ! cr$it det]m9$  
"u ?is section = any taxable ye> %all n 
exce$--  7#a7 = ! fir/ cr$it ye> & ea* (
 ! #b taxable ye>s imm$iately foll[+ !  
fir/ cr$it ye>1 ! great] (-- 7,a7 #ejj1 
or  7,b7 ! less] (-- 7i7 #bej = ea*     
employee ( ! eligible employ] :o is n a 
highly comp5sat$ employee 7z def9$ 9    
section #dad7q77 & :o is eligible to    
p>ticipate 9 ! dep5d5t c>e flexible     
sp5d+ plan ma9ta9$ by ! eligible        
employ]1 or  7ii7 #e1jjj1 &  7#b7 z]o = 
any o!r taxable ye>4  7c7 ,eligible     
employ] ,= purposes ( ?is section-- 7#a7
 ,9 g5]al ,! t]m eligible employ] has ! 
mean+ giv5 su* t]m by section           
#djh7p77#b77;,c77i74  7#b7 ,requirem5t =
 new dep5d5t c>e flexible sp5d+ plans   
,su* t]m %all n include an employ] if1  
dur+ ! #c-taxable ye> p]iod imm$iately  
prec$+ ! #a/ taxable ye> = :i* ! cr$it  
"u ?is section is o!rwise all[able = a  

dep5d5t c>e flexible sp5d+ plan ( !     
employ]1 ! employ] or any memb] ( any   
controll$ gr\p includ+ ! employ] 7or any
 pr$ecessor ( ei!r7 e/abli%$ or ma9ta9$ 
a dep5d5t c>e flexible sp5d+ plan =     
sub/antially ! same employees z !       
employees = :om ! dep5d5t c>e flexible  
sp5d+ plan ) respect to :i* su* cr$it is
 o!rwise all[able is e/abli%$ or        
ma9ta9$4  7d7 ,o!r def9itions ,=        
purposes ( ?is section--  7#a7 ,9 g5]al 
,! t]m qualifi$ />tup co/s means any    
ord9>y & necess>y exp5ses ( an eligible 
employ] :i* are paid or incurr$ 9       
connection )-- 7,a7 ! e/abli%m5t or     
adm9i/ration ( a dep5d5t c>e flexible   
sp5d+ plan1 or  7,b7 education (        
employees ) respect to su* plan4  7#b7  
,plan mu/ h at lea/ #a p>ticipant ,su*  
t]m %all n include any exp5se 9         
connection ) a plan t does n h at lea/  
#a employee eligible to p>ticipate :o is
 n a highly comp5sat$ employee 7z def9$ 
9 section #dad7q774  7#c7  ,dep5d5t c>e 
flexible sp5d+ plan  ,! t]m dep5d5t c>e 

flexible sp5d+ plan means s mu* ( any   
plan ( an employ] z consi/s ( dep5d5t   
c>e flexible sp5d+ arrangem5ts4 ,=      
purposes ( ! prec$+ s5t5ce1 an          
arrangem5t %all be treat$ z a dep5d5t   
c>e flexible sp5d+ arrangem5t only if   
employ] contributions to su* arrangem5t 
are excludible f ! gross income ( an    
employee "u section #abi4  7#d7  ,fir/  
cr$it ye>  ,! t]m fir/ cr$it ye> means1 
) respect to any qualifi$ />tup co/s--  
7,a7 ! taxable ye> :i* includes ! date t
 ! dep5d5t c>e flexible sp5d+ plan to   
:i* su* co/s relate becomes effective1  
or  7,b7 at ! election ( ! eligible     
employ]1 ! taxable ye> prec$+ ! taxable 
ye> ref]r$ to 9 subp>agraph 7,a74  7e7  
,special rules ,rules simil> to ! rules 
( section #de;,e7e7 %all apply =        
purposes ( ?is section4  4  7b7 ,cr$it  
,to be "p ( g5]al bus9ess cr$it ,section
 #ch7;b7 ( su* ,code is am5d$ by /rik+  
plus at ! end ( p>agraph 7#dj71 by /rik+
 ! p]iod at ! end ( p>agraph 7#da7 &    
ins]t+ 1 plus1 & by add+ at ! end !     

foll[+ new p>agraph3  7#db7 9 ! case (  
an eligible employ] 7z def9$ 9 section  
#de;,,bb7c771 ! small employ] dep5d5t   
c>e flexible sp5d+ plan />tup co/ cr$it 
det]m9$ "u section #de;,,bb4  4  7c7    
,cl]ical am5dm5t ,! table ( sections =  
subp>t ,d ( "p ,,iv ( sub*apt] ,a (     
*apt] #a ( su* ,code is am5d$ by add+ at
 ! end ! foll[+ new item3  ,sec4        
#de;,,bb4 ,small employ] dep5d5t c>e    
flexible sp5d+ plan />tup co/s4  4  7d7 
,effective date ,! am5dm5ts made by ?is 
section %all apply to am\nts paid or    
incurr$ aft] ! date ( ! enactm5t ( ?is  
,act1 9 taxable ye>s end+ aft] su* date4