,i  #aaith ,,congress  #b;d ,session    
,h4 ,r4 #ihja  ,,in ,,the ,,house ,,of  
,,representatives  ,july #ba1 #bjbf,mrs4
 ,dingell 7for herself and ,mr4         
,schmidt7 introduced the following bill2
 which was referred to the ,committee on
 ,ways and ,means  ,a ,,bill  ,to amend 
the ,internal ,revenue ,code of #aihf to
 provide matching payments for ,,able   
account contributions by certain        
individuals1 and for other purposes4    
#a4 ,short title ,this ,act may be cited
 as the ,,able ,,match 7,making ,able a 
,tool to ,combat ,hardship7 ,act4  #b4  
,findings ,congress finds the following3
  7#a7 ,people with disabilities are    
more than twice as likely to live in    
poverty than people without             
disabilities4  7#b7 ,households         
containing an adult with a disability   
that limits their ability to work       
requires1 on average1 #bh percent more  
income to obtain the same standard of   
living as similar households without a  
member with a disability4  7#c7 ,the    

average income of households that       
include any working-age people with     
disabilities is #cj1bjj less than the   
average household income of people      
without disabilities4  7#d7 ,the        
,stephen ,beck1 ,jr41 ,achieving a      
,better ,life ,experience ,act of #bjad 
provided for qualified ,,able programs1 
which provided eligible people with     
disabilities the opportunity to open    
tax-advantaged savings accounts without 
the risk of losing the benefits they    
need to participate in society4  7#e7   
,as of ,september #bjbe1 there were     
#bbc1ahb ,,able accounts open in the    
,united ,states with an average balance 
of #ab1hfc4  #c4 ,purposes ,the purposes
 of this ,act are--  7#a7 to encourage  
and assist individuals with disabilities
 with fewer resources to save using     
,,able accounts2  7#b7 to increase      
uptake and continued utilization of     
,,able accounts by people with          
disabilities2 and  7#c7 to provide for a
 ,federal match for new and existing    

,,able accounts held by individuals with
 an annual income less than #bjj percent
 of the ,federal poverty limit4  #d4    
,matching payments for ,,able account   
contributions by certain individuals    
7a7 ,in general ,subchapter ,b of       
chapter #fe of the ,internal ,revenue   
,code of #aihf is amended by inserting  
after section #fdcc the following new   
section3  #fdcc;,a4 ,matching payments  
for ,,able account contributions by     
certain individuals  7a7 ,in general    
7#a7 ,allowance of credit ,any          
individual who is the designated        
beneficiary of an ,,able account as of  
the last day of the taxable year and who
 makes qualified ,,able account         
contributions for such taxable year     
shall be allowed a credit for such      
taxable year in an amount equal to the  
applicable percentage of so much of the 
qualified ,,able account contributions  
made by such individual for the taxable 
year as does not exceed #b1jjj4  7#b7   
,payment of credit ,the credit under    

this section shall be--  7,a7 treated as
 allowed by subpart ,c of part ,,iv of  
subchapter ,a of chapter #a1 and  7,b7  
paid by the ,secretary as a contribution
 7as soon as practicable after the      
individual has filed a tax return making
 a claim for such credit for the taxable
 year7 to the ,,able account of the     
individual4  7b7 ,overall limitation    
,the amount of the credit allowed under 
this section with respect to any        
individual shall not exceed the excess  
of-- 7#a7 the amount in effect under    
section #ebi;,a7b77#b77;,b7 for the     
taxable year1 over  7#b7 the amount of  
contributions made to the ,,able account
 of the individual for such taxable     
year4  7c7 ,applicable percentage ,for  
purposes of this section--  7#a7 ,in    
general ,except as provided in paragraph
 7#b71 the applicable percentage is #ajj
 percent4  7#b7 ,phaseout ,the          
percentage under paragraph 7#a7 shall be
 reduced 7but not below zero7 by the    
number of percentage points which bears 

the same ratio to #ej percentage points 
as--  7,a7 the excess of-- 7i7 the      
taxpayer's modified adjusted gross      
income for the taxable year1 over  7ii7 
the applicable dollar amount1 bears to  
7,b7 #bj1jjj4  ,if any reduction        
determined under this paragraph is not a
 whole percentage point1 such reduction 
shall be rounded to the next lowest     
whole percentage point4  7#c7           
,applicable dollar amount ,the          
applicable dollar amount is-- 7,a7 in   
the case of a joint return1 #ef1jjj1    
7,b7 in the case of a head of household 
7as defined in section #b7;b771 #c_/d of
 the amount applicable under            
subparagraph 7,a71 and  7,c7 in any     
other case1  of the amount applicable   
under subparagraph 7,a74  7d7 ,qualified
 ,,able account contributions ,for      
purposes of this section-- 7#a7 ,in     
general ,the term qualified ,,able      
account contributions means1 with       
respect to any taxable year1 the amount 
of contributions made by the individual 

to the ,,able account of which such     
individual is the designated            
beneficiary4 ,such term shall not       
include any amount attributable to a    
payment under subsection 7a77#b74  7#b7 
,reduction for certain distributions    
7,a7 ,in general ,the qualified ,,able  
account contributions determined under  
paragraph 7#a7 for a taxable year shall 
be reduced 7but not below zero7 by the  
aggregate distributions received by the 
individual during the testing period    
from the ,,able account4  7,b7 ,testing 
period ,for purposes of subparagraph    
7,a71 the testing period1 with respect  
to a taxable year1 is the period which  
includes--  7i7 such taxable year1  7ii7
 the #b preceding taxable years1 and    
7iii7 the period after such taxable year
 and before the due date 7including     
extensions7 for filing the return of tax
 for such taxable year4  7,c7 ,excepted 
distributions ,there shall not be taken 
into account under subparagraph 7,a7 the
 amount of distributions under a        

qualified ,,able program 7within the    
meaning of section #ebi;,a7 that is     
equal to amounts not included in gross  
income with respect to such             
distributions under section             
#ebi;,a7c77#a77;,b7 7relating to        
distributions for qualified disability  
expenses74  7,d7 ,treatment of          
distributions received by spouse of     
individual ,for purposes of determining 
distributions received by an individual 
under subparagraph 7,a7 for any taxable 
year1 any distribution received by the  
spouse of such individual shall be      
treated as received by such individual  
if such individual and spouse file a    
joint return for such taxable year and  
for the taxable year during which the   
spouse receives the distribution4  7e7  
,,able account ,for purposes of this    
section1 the term ,,able account has the
 meaning given such term under section  
#ebi;,a4  7f7 ,other definitions and    
special rules  7#a7 ,modified adjusted  
gross income ,for purposes of this      

section1 the term modified adjusted     
gross income means adjusted gross income
 determined without regard to sections  
#iaa1 #ica1 and #icc4  7#b7 ,erroneous  
credits  7,a7 ,in general ,if any       
contribution is erroneously paid under  
subsection 7a77#b71 including a payment 
that is not made to an ,,able account1  
the amount of such erroneous payment    
shall be treated as an underpayment of  
tax 7other than for purposes of part    
,,ii of subchapter ,a of chapter #fh7   
for the taxable year in which the       
,secretary determines the payment is    
erroneous4  7,b7 ,distribution of       
erroneous credits ,in the case of a     
contribution to which subparagraph 7,a7 
applies1 section #gb shall not apply to 
the distribution of such contribution   
7and any income attributable thereto7 if
 such distribution is received not later
 than the day prescribed by law         
7including extensions of time7 for      
filing the individual's return for such 
taxable year4  7#c7 ,exception from     

reduction or offset ,any payment made to
 any individual under this section shall
 not be--  7,a7 subject to reduction or 
offset pursuant to subsection 7c71 7d71 
7e71 or 7f7 of section #fdjb or any     
similar authority permitting offset1 or 
7,b7 reduced or offset by other assessed
 ,federal taxes that would otherwise be 
subject to levy or collection4  7g7     
,inflation adjustments  7#a7 ,in general
 ,in the case of any taxable year       
beginning in a calendar year after      
#bjbg1 the #ef1jjj amount in subsection 
7c77#c77;,a7 shall be increased by an   
amount equal to-- 7,a7 such dollar      
amount1 multiplied by  7,b7 the         
cost-of-living adjustment determined    
under section #a7;f77#c7 for the        
calendar year in which the taxable year 
begins1 determined by substituting      
calendar year #bjbf for calendar year   
#bjaf in subparagraph 7,a77ii7 thereof4 
7#b7 ,rounding ,any increase determined 
under paragraph 7#a7 shall be rounded to
 the nearest multiple of #a1jjj4  4  7b7

 ,treatment of certain possessions  7#a7
 ,payments to possessions with mirror   
code tax systems ,the ,secretary of the 
,treasury shall pay to each possession  
of the ,united ,states which has a      
mirror code tax system amounts equal to 
the loss 7if any7 to that possession by 
reason of the amendments made by this   
section4 ,such amounts shall be         
determined by the ,secretary of the     
,treasury based on information provided 
by the government of the respective     
possession4  7#b7 ,payments to other    
possessions ,the ,secretary of the      
,treasury shall pay to each possession  
of the ,united ,states which does not   
have a mirror code tax system amounts   
estimated by the ,secretary of the      
,treasury as being equal to the         
aggregate benefits 7if any7 that would  
have been provided to residents of such 
possession by reason of the amendments  
made by this section if a mirror code   
tax system had been in effect in such   
possession4 ,the preceding sentence     

shall not apply unless the respective   
possession has a plan1 which has been   
approved by the ,secretary of the       
,treasury1 under which such possession  
will promptly distribute such payments  
to its residents4  7#c7 ,coordination   
with credit allowed against ,united     
,states income taxes ,no credit shall be
 allowed against ,united ,states income 
taxes under section #fdcc;,a of the     
,internal ,revenue ,code of #aihf 7as   
added by this section7 to any person--  
7,a7 to whom a credit is allowed against
 taxes imposed by the possession by     
reason of the amendments made by this   
section1 or  7,b7 who is eligible for a 
payment under a plan described in       
paragraph 7#b74  7#d7 ,mirror code tax  
system ,for purposes of this subsection1
 the term mirror code tax system means1 
with respect to any possession of the   
,united ,states1 the income tax system  
of such possession if the income tax    
liability of the residents of such      
possession under such system is         

determined by reference to the income   
tax laws of the ,united ,states as if   
such possession were the ,united        
,states4  7#e7 ,treatment of payments   
,for purposes of section #acbd of title 
#ca1 ,united ,states ,code1 payments    
under this subsection shall be treated  
in the same manner as a refund due from 
a credit provision referred to in       
subsection 7b77#b7 of such section4  7c7
 ,deficiencies ,section #fbaa7;b77#d7 of
 the ,internal ,revenue ,code of #aihf  
is amended by striking and #fdcc and    
inserting #fdcc1 and #fdcc;,a4  7d7     
,payment authority ,section             
#acbd7;b77#b7 of title #ca1 ,united     
,states ,code1 is amended by striking or
 #fdcc and inserting #fdcc1 or #fdcc;,a4
  7e7 ,conforming amendments  7#a7      
,subpart ,a of part ,,iv of subchapter  
,a of chapter #a of the ,internal       
,revenue ,code of #aihf is amended by   
striking section #be;,b 7and the item   
related to such section in the table of 
sections for such subpart74  7#b7 ,the  

table of sections for subchapter ,b of  
chapter #fe of such ,code is amended by 
inserting after the item relating to    
section #fdcc the following new item3   
,sec4 #fdcc;,a4 ,matching payments for  
,,able account contributions by certain 
individuals4  4  7f7 ,effective date    
,the amendments made by this section    
shall apply to taxable years beginning  
after ,december #ca1 #bjbf4  #e4        
,demographic reporting with respect to  
,,able accounts  7a7 ,in general        
,section #ebi;,a7d77#a7 of the ,internal
 ,revenue ,code of #aihf is amended by  
adding at the end the following new     
sentence3 ,in addition to the           
information required under the preceding
 sentence1 each officer or employee     
having control of the qualified ,,able  
program of their designee shall include 
in reports provided to the ,secretary   
demographic information 7including race1
 gender1 and disability type7 relating  
to the designated beneficiaries of      
,,able accounts under the program44  7b7

 ,effective date ,the amendment made by 
this section shall apply to reports made
 after the date of the enactment of this
 section4  #f4 ,grants to promote use of
 ,,able accounts and the matching       
contribution credit  7a7 ,in general    
,the ,secretary of the ,treasury 7or the
 ,secretary's delegate7 may award grants
 to ,states to enable ,states to promote
 ,,able accounts 7as defined in section 
#ebi;,a7e7 of the ,internal ,revenue    
,code of #aihf7 and matching payments   
for contributions to such accounts 7as  
provided under section #fdcc;,a of such 
,code1 as added by this ,act74  7b7     
,authorization of appropriations ,there 
is authorized to be appropriated to     
carry out this section #e1jjj1jjj for   
each of fiscal years #bjbg through      
#bjca4