,,ii #aaith ,,congress #b;d ,session ,s4 #ddib ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,may #ab1 #bjbf,mr4 ,van ,hollen 7for himself1 ,mr4 ,moran1 ,ms4 ,klobuchar1 and ,mr4 ,tillis7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,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 ,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 match ,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 matching contribution 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 match 7,a7 ,in general ,except as provided in subparagraph 7,b71 the matching contribution under this section shall be allowed as a credit which shall be payable by the ,secretary as a contribution 7as soon as practicable after the individual has filed a tax return making a claim for such matching contribution for the taxable year7 to the ,,able account of the individual4 7,b7 ,exception ,in the case of an individual who elects the application of this subparagraph and with respect to whom the matching contribution determined under paragraph 7#a7 is greater than zero but less than #ej for the taxable year1 subparagraph 7,a7 shall not apply and such matching contribution shall be treated as a credit allowed by subpart ,c of part ,,iv of subchapter ,a of chapter #a4 7b7 ,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 #ajj percentage points as-- 7,a7 the excess of-- 7i7 the taxpayer's modified adjusted gross income for such 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 #a_/b of the amount applicable under subparagraph 7,a74 7c7 ,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 7d7 ,,able account ,for purposes of this section1 the term ,,able account has the meaning given such term under section #ebi;,a4 7e7 ,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 ,treatment of contributions ,in the case of any contribution under subsection 7a77#b71 such contribution shall not be taken into account with respect to the limitation under section #ebi;,a7b77#b77;,b74 7#c7 ,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#d7 ,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 7#e7 ,election not to have section apply ,a taxpayer may elect not to have this section apply for any taxable year4 7f7 ,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 7b77#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 the 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 ,coordination with savers' credit ,section #be;,b7c77#a7 of the ,internal ,revenue ,code of #aihf is amended by inserting and such individual has made an election under section #fdcc;,a7e77#e7 not to have section #fdcc;,a apply for such taxable year before the period at the end4 7d7 ,deficiencies ,section #fbaa7;b77#d7 of the ,internal ,revenue ,code of #aihf is amended by striking and #fdcc and inserting #fdcc1 and #fdcc;,a4 7e7 ,payment authority ,section #acbd7;b77#b7 of title #ca1 ,united ,states ,code1 is amended by striking or #fdcc and inserting #fdcc1 or #fdcc;,a4 7f7 ,clerical amendment ,the table of sections for subchapter ,b of chapter #fe of the ,internal ,revenue ,code of #aihf 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 7g7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjbf4 #c4 ,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 #d4 ,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 #bjcj4