II 

118TH CONGRESS 

1ST SESSION S. 3296 

To amend the Internal Revenue Code of 1986 to expand and modify employer 

educational assistance programs, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

NOVEMBER 14 (legislative day, NOVEMBER 13), 2023 

Ms. HASSAN (for herself, Mr. YOUNG, Ms. CORTEZ MASTO, and Mr. SCOTT

of South Carolina) 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 expand 

and modify employer educational assistance programs, 

and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Upskilling and Re5 training Assistance Act’’. 

6 SEC. 2. TEMPORARY INCREASE IN EXCLUSION FOR EDU7 CATIONAL ASSISTANCE PROGRAMS. 

8 In the case of taxable years beginning after December 

9 31, 2023, and before January 1, 2026, section 127(a)(2) 


pbinns on DSKJLVW7X2PROD with $$_JOB
2 

•S 3296 IS

1 of the Internal Revenue Code of 1986 shall be applied by 

2 substituting ‘‘$12,000’’ for ‘‘$5,250’’ each place it ap3 pears. 

4 SEC. 3. EXPENSES FOR EDUCATION-RELATED TOOLS AND 

5 TECHNOLOGY. 

6 (a) IN GENERAL.—Paragraph (1) of section 127(c) 

7 of the Internal Revenue Code of 1986 is amended by strik8 ing ‘‘equipment’’ both places it appears in subparagraphs 

9 (A) and (C) thereof and inserting ‘‘education-related tools 

10 and technology and other equipment’’. 

11 (b) EDUCATION-RELATED TOOLS AND TECH12 NOLOGY.—Subsection (c) of section 127 of the Internal 

13 Revenue Code of 1986 is amended by adding at the end 

14 the following new paragraph: 

15 ‘‘(8) EDUCATION-RELATED TOOLS AND TECH16 NOLOGY.—For purposes of paragraph (1), the term 

17 ‘education-related tools and technology’ includes 

18 any— 

19 ‘‘(A) hand tools and construction equip20 ment, 

21 ‘‘(B) computer or peripheral equipment (as 

22 defined in section 168(i)(2)(B)), 

23 ‘‘(C) computer software (as defined in sec24 tion 197(e)(3)(B)), 


pbinns on DSKJLVW7X2PROD with $$_JOB
3 

•S 3296 IS

1 ‘‘(D) internet access and related services 

2 (including equipment or technology necessary 

3 for internet access), 

4 ‘‘(E) internet, mobile, or virtual reality 

5 learning tools and technology, 

6 ‘‘(F) licensure fees, materials, or other 

7 equipment, and 

8 ‘‘(G) any other tools or technology as de9 termined by the Secretary, 

10 provided to an employee which is required for the 

11 education of the employee or in connection with a 

12 course of instruction for the employee, or is required 

13 in order for the employee to obtain professional ad14 vancement, to obtain any certification, licensure, or 

15 employment under any State, regional or national 

16 guidelines or regulations applicable to a trade or 

17 other skilled profession, or to maintain such a cer18 tification, licensure, or employment through a con19 tinuing education program.’’. 

20 (c) EMPLOYEE RETENTION OF EDUCATION-RE21 LATED TOOLS AND TECHNOLOGY.—Paragraph (1) of sec22 tion 127(c) of the Internal Revenue Code of 1986 is 

23 amended by striking ‘‘completion of a course of instruc24 tion,’’ and inserting ‘‘completion of a course of instruction 


pbinns on DSKJLVW7X2PROD with $$_JOB
4 

•S 3296 IS

1 (other than education-related tools and technology not de2 scribed in paragraph (8)(D)),’’. 

3 (d) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to amounts paid or incurred on 

5 or after the first day of the calendar quarter which in6 cludes the date of the enactment of this Act. 

Æ 


pbinns on DSKJLVW7X2PROD with $$_JOB