I 

109TH CONGRESS 

1ST SESSION H. R. 1305

To amend the Internal Revenue Code of 1986 to make permanent and 

refundable, and to expand, the saver’s credit. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 15, 2005

Mr. EMANUEL (for himself, Mr. BECERRA, Mr. LARSON of Connecticut, Mr. 

MCDERMOTT, Mr. MEEKS of New York, and Mr. ABERCROMBIE) 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 make 

permanent and refundable, and to expand, the saver’s credit.

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 ‘‘Retirement Savings 

5 for Working Americans Act’’. 

6 SEC. 2. EXPANDED, PERMANENT, AND REFUNDABLE SAV7 ER’S CREDIT. 

8 (a) CREDIT MADE REFUNDABLE.—The Internal 

9 Revenue Code of 1986 is amended by redesignating sec-
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1 tion 36 as section 37, by redesignating section 25B as sec2 tion 36, and by moving section 36 (as so redesignated) 

3 from subpart A of part IV of subchapter A of chapter 1 

4 (relating to nonrefundable personal credits) to imme5 diately after section 35 in subpart C of such part (relating 

6 to refundable credits). 

7 (b) EXPANSION OF PHASEOUT RANGES.—Subsection 

8 (b) of section 36 of such Code (as redesignated under this 

9 section) is amended to read as follows: 

10 ‘‘(b) APPLICABLE PERCENTAGE.—For purposes of 

11 this section—

12 ‘‘(1) IN GENERAL.—Except as provided in para13 graph (2), the applicable percentage is 50 percent. 

14 ‘‘(2) PHASEOUT.—With respect to any taxpayer 

15 for any taxable year, the applicable percentage shall 

16 be reduced (but not below zero) by the percentage 

17 which bears the same ratio to 50 percent as—

18 ‘‘(A) the excess of—

19 ‘‘(i) the taxpayer’s adjusted gross in20 come for such taxable year, over 

21 ‘‘(ii) the applicable dollar amount, 

22 bears to 

23 ‘‘(B) the phaseout range. 
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1 If any reduction under this paragraph is not a mul2 tiple of 1 percent, such reduction shall be rounded 

3 to the nearest multiple of 1 percent. 

4 ‘‘(3) APPLICABLE DOLLAR AMOUNT; PHASEOUT

5 RANGE.—The applicable dollar amount and the 

6 phaseout range shall be determined in accordance 

7 with the following table:

‘‘In the case of: The applicable dollar 

amount is: 

The phaseout 

range is: 

A joint return ..................................... $60,000 $10,000

A head of a household ........................ $45,000 $7,500

Any other case ................................... $30,000 $5,000’’. 

8 (c) CREDIT MADE PERMANENT.—Section 36 of such 

9 Code (as redesignated under this section) is amended by 

10 striking subsection (h). 

11 (d) CONFORMING AMENDMENTS.—

12 (1) Section 24(b)(3)(B) of such Code is amend13 ed by striking ‘‘and 25B’’. 

14 (2) Section 25(e)(1)(C) of such Code is amend15 ed by striking ‘‘25B,’’. 

16 (3) Sections 26(a)(1), 904(i), and 1400C(d) of 

17 such Code are each amended by striking ‘‘24, and 

18 25B’’ and inserting ‘‘and 24’’. 

19 (4) The heading of section 36 of such Code (as 

20 redesignated under this section) is amended by strik21 ing ‘‘ELECTIVE’’ and inserting ‘‘SAVER’S CREDIT: 

22 ELECTIVE’’. 
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1 (5) Section 36 of such Code (as so redesig2 nated) is amended by striking subsection (g). 

3 (6) The table of sections for subpart A of part 

4 IV of subchapter A of chapter 1 of such Code is 

5 amended by striking the item relating to section 

6 25B. 

7 (7) The table of sections for subpart C of such 

8 part is amended by redesignating the item relating 

9 to section 36 as an item relating to section 37 and 

10 by inserting before such item the following new item:

‘‘Sec. 36. Saver’s credit: elective deferrals and IRA contributions by certain individuals.’’.

11 (8) Section 1324(b)(2) of title 31, United 

12 States Code, is amended by inserting ‘‘or 36’’ after 

13 ‘‘section 35’’. 

14 (e) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to taxable years beginning after 

16 December 31, 2005.

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