I 

118TH CONGRESS 

1ST SESSION H. R. 6402 

To amend the Internal Revenue Code of 1986 to increase the exclusion 

for educational assistance programs and to allow the exclusion with 

respect to education-related tools and technology. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 14, 2023 

Mr. FEENSTRA (for himself and Mr. DAVIS of Illinois) introduced the 

following bill; which was referred to the Committee on Ways and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to increase 

the exclusion for educational assistance programs and 

to allow the exclusion with respect to education-related 

tools and technology. 

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 ‘‘Upward Mobility En5 hancement Act’’. 

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1 SEC. 2. INCREASE IN EXCLUSION FOR EDUCATIONAL AS2 SISTANCE PROGRAMS. 

3 (a) IN GENERAL.—Section 127(a)(2) of the Internal 

4 Revenue Code of 1986 is amended to read as follows: 

5 ‘‘(2) MAXIMUM EXCLUSION.— 

6 ‘‘(A) IN GENERAL.—This section shall 

7 apply only to the first $12,000 of educational 

8 assistance furnished to an individual during a 

9 calendar year, in the case of assistance for edu10 cation below the graduate level. 

11 ‘‘(B) INFLATION ADJUSTMENT.—In the 

12 case of any calendar year after 2023, the dollar 

13 amount in subparagraph (A) shall be increased 

14 by an amount equal to— 

15 ‘‘(i) such dollar amount, multiplied by 

16 ‘‘(ii) the cost-of-living adjustment de17 termined under section 1(f)(3) for the cal18 endar year in which such taxable year be19 gins by substituting ‘calendar year 2022’ 

20 for ‘calendar year 2016’ in subparagraph 

21 (A)(ii) thereof. 

22 If any increase determined under this subpara23 graph is not a multiple of $50, such increase 

24 shall be rounded to the next lowest multiple of 

25 $50.’’. 

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1 (b) EFFECTIVE DATE.—The amendment made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2022. 

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

5 TECHNOLOGY. 

6 (a) IN GENERAL.—Section 127(c)(1) of the Internal 

7 Revenue Code of 1986 is amended by striking ‘‘equip8 ment’’ both places it appears in subparagraphs (A) and 

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

10 technology and other equipment’’. 

11 (b) EDUCATION-RELATED TOOLS AND TECH12 NOLOGY.—Section 127(c) of such Code is amended by 

13 adding at the end the following new paragraph: 

14 ‘‘(8) EDUCATION-RELATED TOOLS AND TECH15 NOLOGY.—For purposes of paragraph (1), the term 

16 ‘education-related tools and technology’ includes 

17 any— 

18 ‘‘(A) hand tools and construction equip19 ment, 

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

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

22 ‘‘(C) computer software (as defined in sec23 tion 197(e)(3)(B)), 

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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.—Section 127(c)(1) of 

22 such Code is amended by striking ‘‘completion of a course 

23 of instruction,’’ and inserting ‘‘completion of a course of 

24 instruction (other than education-related tools and tech25 nology not described in paragraph (8)(D)),’’. 

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

2 this section shall apply to amounts paid or incurred on 

3 or after the first day of the calendar quarter which in4 cludes the date of the enactment of this Act. 

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