II

Calendar No. 311

105TH CONGRESS

2D SESSION S. 1133

[Report No. 105–164]

To amend the Internal Revenue Code of 1986 to allow tax-free expenditures

from education individual retirement accounts for elementary and secondary school expenses and to increase the maximum annual amount of

contributions to such accounts.

IN THE SENATE OF THE UNITED STATES

JULY 31, 1997

Mr. COVERDELL (for himself, Mr. LOTT, Mr. NICKLES, Mr. MACK, Mr.

CRAIG, Mr. MCCONNELL, Mr. ROTH, Mr. GRAMM, Mr. ABRAHAM, Mr.

ASHCROFT, Mr. ALLARD, Mr. BENNETT, Mr. BOND, Mr. BROWNBACK,

Mr. COATS, Mr. DOMENICI, Mr. DEWINE, Mr. FAIRCLOTH, Mr. GORTON,

Mr. GRAMS, Mr. GREGG, Mr. HAGEL, Mr. HATCH, Mr. HELMS, Mr.

HUTCHINSON, Mrs. HUTCHISON, Mr. INHOFE, Mr. LIEBERMAN, Mr.

MCCAIN, Mr. MURKOWSKI, Mr. ROBERTS, Mr. SESSIONS, Mr. SHELBY,

Mr. SMITH of New Hampshire, Mr. TORRICELLI, Mr. WARNER, Mr.

COCHRAN, Mr. KYL, Mr. THOMPSON, Mr. BURNS, Mr. D’AMATO, Mr.

SANTORUM, Mr. THOMAS, and Mr. FRIST) introduced the following bill;

which was read twice and referred to the Committee on Finance

FEBRUARY 19, 1998

Reported by Mr. ROTH, under authority of the order of the Senate of

February 12, 1998, with an amendment and an amendment to the title

[Strike out all after the enacting clause and insert the part printed in italic]

A BILL

To amend the Internal Revenue Code of 1986 to allow taxfree expenditures from education individual retirement
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accounts for elementary and secondary school expenses

and to increase the maximum annual amount of contributions to such accounts.

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 ‘‘Parent and Student

5 Savings Account PLUS Act’’.

6 SEC. 2. MODIFICATIONS TO EDUCATION INDIVIDUAL RE7 TIREMENT ACCOUNTS.

8 (a) TAX-FREE EXPENDITURES FOR ELEMENTARY

9 AND SECONDARY SCHOOL EXPENSES.—

10 (1) IN GENERAL.—Section 530(b)(2) of the In11 ternal Revenue Code of 1986 is amended to read as

12 follows:

13 ‘‘(2) QUALIFIED EDUCATION EXPENSES.—

14 ‘‘(A) IN GENERAL.—The term ‘qualified

15 education expenses’ means—

16 ‘‘(i) qualified higher education ex17 penses (as defined in section 529(e)(3)),

18 and

19 ‘‘(ii) qualified elementary and second20 ary education expenses (as defined in para21 graph (4)).

22 Such expenses shall be reduced as provided in

23 section 25A(g)(2).
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1 ‘‘(B) QUALIFIED STATE TUITION PRO2 GRAMS.—Such term shall include amounts paid

3 or incurred to purchase tuition credits or cer4 tificates, or to make contributions to an ac5 count, under a qualified State tuition program

6 (as defined in section 529(b)) for the benefit of

7 the beneficiary of the account.’’

8 (2) QUALIFIED ELEMENTARY AND SECONDARY

9 EDUCATION EXPENSES.—Section 530(b) of such

10 Code is amended by adding at the end the following

11 new paragraph:

12 ‘‘(4) QUALIFIED ELEMENTARY AND SECONDARY

13 EDUCATION EXPENSES.—

14 ‘‘(A) IN GENERAL.—The term ‘qualified el15 ementary and secondary education expenses’

16 means tuition, fees, tutoring, special needs serv17 ices, books, supplies, equipment, transportation,

18 and supplementary expenses required for the

19 enrollment or attendance of the designated ben20 eficiary of the trust at a public, private, or sec21 tarian school.

22 ‘‘(B) SPECIAL RULE FOR

23 HOMESCHOOLING.—Such term shall include ex24 penses described in subparagraph (A) required

25 for education provided for homeschooling if the
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1 requirements of any applicable State or local

2 law are met with respect to such education.

3 ‘‘(C) SCHOOL.—The term ‘school’ means

4 any school which provides elementary education

5 or secondary education (through grade 12), as

6 determined under State law.’’

7 (3) CONFORMING AMENDMENTS.—Subsections

8 (b)(1) and (d)(2) of section 530 of such Code are

9 each amended by striking ‘‘higher’’ each place it ap10 pears in the text and heading thereof.

11 (b) INCREASE IN MAXIMUM ANNUAL CONTRIBU12 TIONS.—

13 (1) IN GENERAL.—Section 530(b)(1)(A)(iii) of

14 the Internal Revenue Code of 1986 is amended by

15 striking ‘‘$500’’ and inserting ‘‘$2,000’’.

16 (2) CONFORMING AMENDMENTS.—

17 (A) Section 530(d)(4)(C) of such Code is

18 amended by striking ‘‘$500’’ and inserting

19 ‘‘$2,000’’.

20 (B) Section 4973(e)(1)(A) of such Code is

21 amended by striking ‘‘$500’’ and inserting

22 ‘‘$2,000’’.

23 (c) EFFECTIVE DATE; REFERENCES.—

24 (1) EFFECTIVE DATE.—The amendments made

25 by this section shall take effect as if included in the
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1 amendments made by section 213 of the Taxpayer

2 Relief Act of 1997.

3 (2) REFERENCES.—Any reference in this sec4 tion to any section of the Internal Revenue Code of

5 1986 shall be a reference to such section as added

6 by the Taxpayer Relief Act of 1997.

7 SECTION 1. SHORT TITLE; AMENDMENT TO 1986 CODE;

8 TABLE OF CONTENTS.

9 (a) SHORT TITLE.—This Act may be cited as the

10 ‘‘Parent and Student Savings Account PLUS Act’’.

11 (b) AMENDMENT TO 1986 CODE.—Except as otherwise

12 expressly provided, whenever in this Act an amendment or

13 repeal is expressed in terms of an amendment to, or repeal

14 of, a section or other provision, the reference shall be consid15 ered to be made to a section or other provision of the Inter16 nal Revenue Code of 1986.

17 (c) TABLE OF CONTENTS.—The table of contents for

18 this Act is as follows:

Sec. 1. Short title; amendment to 1986 Code; table of contents.

TITLE I—TAX INCENTIVES FOR EDUCATION

Sec. 101. Modifications to education individual retirement accounts.

Sec. 102. Exclusion from gross income of education distributions from qualified

State tuition programs.

Sec. 103. Extension of exclusion for employer-provided educational assistance.

Sec. 104. Additional increase in arbitrage rebate exception for governmental

bonds used to finance education facilities.

Sec. 105. Exclusion of certain amounts received under the National Health Corps

Scholarship program.

TITLE II—REVENUE

Sec. 201. Clarification of deduction for deferred compensation.

Sec. 202. Modification to foreign tax credit carryback and carryover periods.
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1 TITLE I—TAX INCENTIVES FOR

2 EDUCATION

3 SEC. 101. MODIFICATIONS TO EDUCATION INDIVIDUAL RE4 TIREMENT ACCOUNTS.

5 (a) TAX-FREE EXPENDITURES FOR ELEMENTARY AND

6 SECONDARY SCHOOL EXPENSES.—

7 (1) IN GENERAL.—Section 530(b)(2) (defining

8 qualified higher education expenses) is amended to

9 read as follows:

10 ‘‘(2) QUALIFIED EDUCATION EXPENSES.—

11 ‘‘(A) IN GENERAL.—The term ‘qualified

12 education expenses’ means—

13 ‘‘(i) qualified higher education ex14 penses (as defined in section 529(e)(3)), and

15 ‘‘(ii) qualified elementary and second16 ary education expenses (as defined in para17 graph (4)).

18 Such expenses shall be reduced as provided in

19 section 25A(g)(2).

20 ‘‘(B) QUALIFIED STATE TUITION PRO21 GRAMS.—Such term shall include amounts paid

22 or incurred to purchase tuition credits or certifi23 cates, or to make contributions to an account,

24 under a qualified State tuition program (as de-
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1 fined in section 529(b)) for the benefit of the ben2 eficiary of the account.’’

3 (2) QUALIFIED ELEMENTARY AND SECONDARY

4 EDUCATION EXPENSES.—Section 530(b) (relating to

5 definitions and special rules) is amended by adding

6 at the end the following new paragraph:

7 ‘‘(4) QUALIFIED ELEMENTARY AND SECONDARY

8 EDUCATION EXPENSES.—

9 ‘‘(A) IN GENERAL.—The term ‘qualified ele10 mentary and secondary education expenses’

11 means—

12 ‘‘(i) expenses for tuition, fees, academic

13 tutoring, special needs services, books, sup14 plies, computer equipment (including relat15 ed software and services), and other equip16 ment which are incurred in connection with

17 the enrollment or attendance of the des18 ignated beneficiary of the trust as an ele19 mentary or secondary school student at a

20 public, private, or religious school, or

21 ‘‘(ii) expenses for room and board, uni22 forms, transportation, and supplementary

23 items and services (including extended day

24 programs) which are required or provided

25 by a public, private, or religious school in
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1 connection with such enrollment or attend2 ance.

3 ‘‘(B) SPECIAL RULE FOR

4 HOMESCHOOLING.—Such term shall include ex5 penses described in subparagraph (A)(i) in con6 nection with education provided by

7 homeschooling if the requirements of any appli8 cable State or local law are met with respect to

9 such education.

10 ‘‘(C) SCHOOL.—The term ‘school’ means

11 any school which provides elementary education

12 or secondary education (kindergarten through

13 grade 12), as determined under State law.’’

14 (3) SPECIAL RULES FOR APPLYING EXCLUSION

15 TO ELEMENTARY AND SECONDARY EXPENSES.—Sec16 tion 530(d)(2) (relating to distributions for qualified

17 higher education expenses) is amended by adding at

18 the end the following new subparagraph:

19 ‘‘(D) SPECIAL RULES FOR ELEMENTARY

20 AND SECONDARY EXPENSES.—

21 ‘‘(i) IN GENERAL.—The aggregate

22 amount of qualified elementary and second23 ary education expenses taken into account

24 for purposes of this paragraph with respect

25 to any education individual retirement ac-
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1 count for all taxable years shall not exceed

2 the sum of the aggregate contributions to

3 such account for taxable years beginning

4 after December 31, 1998, and before Janu5 ary 1, 2003, and earnings on such contribu6 tions.

7 ‘‘(ii) SPECIAL OPERATING RULES.—

8 For purposes of clause (i)—

9 ‘‘(I) the trustee of an education

10 individual retirement account shall

11 keep separate accounts with respect to

12 contributions and earnings described

13 in clause (i), and

14 ‘‘(II) if there are distributions in

15 excess of qualified elementary and sec16 ondary education expenses for any tax17 able year, such excess distributions

18 shall be allocated first to contributions

19 and earnings not described in clause

20 (i).’’

21 (4) CONFORMING AMENDMENTS.—Subsections

22 (b)(1) and (d)(2) of section 530 are each amended by

23 striking ‘‘higher’’ each place it appears in the text

24 and heading thereof.

25 (b) MAXIMUM ANNUAL CONTRIBUTIONS.—
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1 (1) IN GENERAL.—Section 530(b)(1)(A)(iii) (de2 fining education individual retirement account) is

3 amended by striking ‘‘$500’’ and inserting ‘‘the con4 tribution limit for such taxable year’’.

5 (2) CONTRIBUTION LIMIT.—Section 530(b) (re6 lating to definitions and special rules), as amended

7 by subsection (a)(2), is amended by adding at the end

8 the following new paragraph:

9 ‘‘(5) CONTRIBUTION LIMIT.—The term ‘contribu10 tion limit’ means $500 ($2,000 in the case of any

11 taxable year beginning after December 31, 1998, and

12 ending before January 1, 2003).’’

13 (3) CONFORMING AMENDMENTS.—

14 (A) Section 530(d)(4)(C) is amended by

15 striking ‘‘$500’’ and inserting ‘‘the contribution

16 limit for such taxable year’’.

17 (B) Section 4973(e)(1)(A) is amended by

18 striking ‘‘$500’’ and inserting ‘‘the contribution

19 limit (as defined in section 530(b)(5)) for such

20 taxable year’’.

21 (c) WAIVER OF AGE LIMITATIONS FOR CHILDREN

22 WITH SPECIAL NEEDS.—Section 530(b)(1) (defining edu23 cation individual retirement account) is amended by add24 ing at the end the following flush sentence:
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1 ‘‘The age limitations in the preceding sentence shall

2 not apply to any designated beneficiary with special

3 needs (as determined under regulations prescribed by

4 the Secretary).’’

5 (d) CORPORATIONS PERMITTED TO CONTRIBUTE TO

6 ACCOUNTS.—Section 530(c)(1) (relating to reduction in

7 permitted contributions based on adjusted gross income) is

8 amended by striking ‘‘The maximum amount which a con9 tributor’’ and inserting ‘‘In the case of a contributor who

10 is an individual, the maximum amount the contributor’’.

11 (e) NO DOUBLE BENEFIT.—Section 530(d)(2) (relat12 ing to distributions for qualified education expenses), as

13 amended by subsection (a)(3), is amended by adding at the

14 end the following new subparagraph:

15 ‘‘(E) DISALLOWANCE OF EXCLUDED

16 AMOUNTS AS CREDIT OR DEDUCTION.—No deduc17 tion or credit shall be allowed to the taxpayer

18 under any other section of this chapter for any

19 qualified education expenses to the extent taken

20 into account in determining the amount of the

21 exclusion under this paragraph.’’

22 (f) TECHNICAL CORRECTIONS.—

23 (1)(A) Section 530(b)(1)(E) (defining education

24 individual retirement account) is amended to read as

25 follows:
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1 ‘‘(E) Any balance to the credit of the des2 ignated beneficiary on the date on which the ben3 eficiary attains age 30 shall be distributed with4 in 30 days after such date to the beneficiary or,

5 if the beneficiary dies before attaining age 30,

6 shall be distributed within 30 days after the date

7 of death to the estate of such beneficiary.’’

8 (B) Section 530(d) (relating to tax treatment of

9 distributions) is amended by adding at the end the

10 following new paragraph:

11 ‘‘(8) DEEMED DISTRIBUTION ON REQUIRED DIS12 TRIBUTION DATE.—In any case in which a distribu13 tion is required under subsection (b)(1)(E), any bal14 ance to the credit of a designated beneficiary as of the

15 close of the 30-day period referred to in such sub16 section for making such distribution shall be deemed

17 distributed at the close of such period.’’

18 (2)(A) Section 530(d)(1) is amended by striking

19 ‘‘section 72(b)’’ and inserting ‘‘section 72’’.

20 (B) Section 72(e) (relating to amounts not re21 ceived as annuities) is amended by inserting after

22 paragraph (8) the following new paragraph:

23 ‘‘(9) EXTENSION OF PARAGRAPH (2)(B) TO QUALI24 FIED STATE TUITION PROGRAMS AND EDUCATIONAL

25 INDIVIDUAL RETIREMENT ACCOUNTS.—Notwithstand-
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1 ing any other provision of this subsection, paragraph

2 (2)(B) shall apply to amounts received under a quali3 fied State tuition program (as defined in section

4 529(b)) or under an education individual retirement

5 account (as defined in section 530(b)). The rule of

6 paragraph (8)(B) shall apply for purposes of this

7 paragraph.’’

8 (3) Section 530(d)(4)(B) (relating to exceptions)

9 is amended by striking ‘‘or’’ at the end of clause (ii),

10 by striking the period at the end of clause (iii) and

11 inserting ‘‘, or’’, and by adding at the end the follow12 ing new clause:

13 ‘‘(iv) an amount which is includible in

14 gross income solely because the taxpayer

15 elected under paragraph (2)(C) to waive the

16 application of paragraph (2) for the taxable

17 year.’’

18 (g) EFFECTIVE DATES.—

19 (1) IN GENERAL.—Except as provided in para20 graph (2), the amendments made by this section shall

21 apply to taxable years beginning after December 31,

22 1998.

23 (2) TECHNICAL CORRECTIONS.—The amend24 ments made by subsection (f) shall take effect as if in-
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1 cluded in the amendments made by section 213 of the

2 Taxpayer Relief Act of 1997.

3 SEC. 102. EXCLUSION FROM GROSS INCOME OF EDUCATION

4 DISTRIBUTIONS FROM QUALIFIED STATE TUI5 TION PROGRAMS.

6 (a) IN GENERAL.—Section 529(c)(3)(B) (relating to

7 distributions) is amended to read as follows:

8 ‘‘(B) DISTRIBUTIONS FOR QUALIFIED HIGH9 ER EDUCATION EXPENSES.—

10 ‘‘(i) IN GENERAL.—No amount shall be

11 includible in gross income under subpara12 graph (A) if the qualified higher education

13 expenses of the designated beneficiary dur14 ing the taxable year are not less than the

15 aggregate distributions during the taxable

16 year.

17 ‘‘(ii) DISTRIBUTIONS IN EXCESS OF

18 EXPENSES.—If such aggregate distributions

19 exceed such expenses during the taxable

20 year, the amount otherwise includible in

21 gross income under subparagraph (A) shall

22 be reduced by the amount which bears the

23 same ratio to the amount so includible

24 (without regard to this subparagraph) as
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1 such expenses bear to such aggregate dis2 tributions.

3 ‘‘(iii) ELECTION TO WAIVE EXCLU4 SION.—A taxpayer may elect to waive the

5 application of this subparagraph for any

6 taxable year.

7 ‘‘(iv) IN-KIND DISTRIBUTIONS.—Any

8 benefit furnished to a designated beneficiary

9 under a qualified State tuition program

10 shall be treated as a distribution to the ben11 eficiary for purposes of this paragraph.

12 ‘‘(v) DISALLOWANCE OF EXCLUDED

13 AMOUNTS AS CREDIT OR DEDUCTION.—No

14 deduction or credit shall be allowed to the

15 taxpayer under any other section of this

16 chapter for any qualified higher education

17 expenses to the extent taken into account in

18 determining the amount of the exclusion

19 under this paragraph.’’

20 (b) DEFINITION OF QUALIFIED HIGHER EDUCATION

21 EXPENSES.—Section 529(e)(3)(A) (defining qualified high22 er education expenses) is amended to read as follows:

23 ‘‘(A) IN GENERAL.—The term ‘qualified

24 higher education expenses’ means expenses for

25 tuition, fees, academic tutoring, special needs
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1 services, books, supplies, computer equipment

2 (including related software and services), and

3 other equipment which are incurred in connec4 tion with the enrollment or attendance of the des5 ignated beneficiary at an eligible educational in6 stitution.’’

7 (c) COORDINATION WITH EDUCATION CREDITS.—Sec8 tion 25A(e)(2) (relating to coordination with exclusions) is

9 amended—

10 (1) by inserting ‘‘a qualified State tuition pro11 gram or’’ before ‘‘an education individual retirement

12 account’’, and

13 (2) by striking ‘‘section 530(d)(2)’’ and inserting

14 ‘‘section 529(c)(3)(B) or 530(d)(2)’’.

15 (d) TECHNICAL CORRECTION.—Section 529(c)(3)(A) is

16 amended by striking ‘‘section 72(b)’’ and inserting ‘‘section

17 72’’.

18 (e) EFFECTIVE DATES.—

19 (1) IN GENERAL.—Except as provided in para20 graph (2), the amendments made by this section shall

21 apply to taxable years beginning after December 31,

22 1998.

23 (2) TECHNICAL CORRECTION.—The amendment

24 made by subsection (d) shall take effect as if included
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1 in the amendments made by section 211 of the Tax2 payer Relief Act of 1997.

3 SEC. 103. EXTENSION OF EXCLUSION FOR EMPLOYER-PRO4 VIDED EDUCATIONAL ASSISTANCE.

5 (a) IN GENERAL.—Section 127(d) (relating to termi6 nation of exclusion for educational assistance programs) is

7 amended by striking ‘‘May 31, 2000’’ and inserting ‘‘De8 cember 31, 2002’’.

9 (b) REPEAL OF LIMITATION ON GRADUATE EDU10 CATION.—The last sentence of section 127(c)(1) (defining

11 educational assistance) is amended by striking ‘‘, and such

12 term also does not include any payment for, or the provi13 sion of any benefits with respect to, any graduate level

14 course of a kind normally taken by an individual pursuing

15 a program leading to a law, business, medical, or other ad16 vanced academic or professional degree’’.

17 (c) EFFECTIVE DATES.—

18 (1) EXTENSION.—The amendment made by sub19 section (a) shall apply to expenses paid with respect

20 to courses beginning after May 31, 2000.

21 (2) GRADUATE EDUCATION.—The amendment

22 made by subsection (b) shall apply to expenses paid

23 with respect to courses beginning after December 31,

24 1997.
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1 SEC. 104. ADDITIONAL INCREASE IN ARBITRAGE REBATE

2 EXCEPTION FOR GOVERNMENTAL BONDS

3 USED TO FINANCE EDUCATION FACILITIES.

4 (a) IN GENERAL.—Section 148(f)(4)(D)(vii) (relating

5 to increase in exception for bonds financing public school

6 capital expenditures) is amended by striking ‘‘$5,000,000’’

7 the second place it appears and inserting ‘‘$10,000,000’’.

8 (b) EFFECTIVE DATE.—The amendment made by sub9 section (a) shall apply to obligations issued after December

10 31, 1998.

11 SEC. 105. EXCLUSION OF CERTAIN AMOUNTS RECEIVED

12 UNDER THE NATIONAL HEALTH CORPS

13 SCHOLARSHIP PROGRAM.

14 (a) IN GENERAL.—Section 117(c) (relating to the ex15 clusion from gross income amounts received as a qualified

16 scholarship) is amended—

17 (1) by striking ‘‘Subsections (a)’’ and inserting

18 the following:

19 ‘‘(1) IN GENERAL.—Except as provided in para20 graph (2), subsections (a)’’; and

21 (2) by adding at the end the following new para22 graph:

23 ‘‘(2) NATIONAL HEALTH CORPS SCHOLARSHIP

24 PROGRAM.—Paragraph (1) shall not apply to any

25 amount received by an individual under the National
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1 Health Corps Scholarship Program under section

2 338A(g)(1)(A) of the Public Health Service Act.’’

3 (b) EFFECTIVE DATE.—The amendments made by sub4 section (a) shall apply to amounts received in taxable years

5 beginning after December 31, 1993.

6 TITLE II—REVENUE

7 SEC. 201. CLARIFICATION OF DEDUCTION FOR DEFERRED

8 COMPENSATION.

9 (a) IN GENERAL.—Section 404(a) (relating to deduc10 tion for contributions of an employer to an employee’s trust

11 or annuity plan and compensation under a deferred-pay12 ment plan) is amended by adding at the end the following

13 new paragraph:

14 ‘‘(11) DETERMINATIONS RELATING TO DEFERRED

15 COMPENSATION.—

16 ‘‘(A) IN GENERAL.—For purposes of deter17 mining under this section—

18 ‘‘(i) whether compensation of an em19 ployee is deferred compensation, and

20 ‘‘(ii) when deferred compensation is

21 paid,

22 no amount shall be treated as received by the em23 ployee, or paid, until it is actually received by

24 the employee.
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1 ‘‘(B) EXCEPTION.—Subparagraph (A) shall

2 not apply to severance pay.’’

3 (b) EFFECTIVE DATE.—

4 (1) IN GENERAL.—The amendment made by sub5 section (a) shall apply to taxable years ending after

6 the date of the enactment of this Act.

7 (2) CHANGE IN METHOD OF ACCOUNTING.—In

8 the case of any taxpayer required by the amendment

9 made by subsection (a) to change its method of ac10 counting for its first taxable year ending after the

11 date of the enactment of this Act—

12 (A) such change shall be treated as initiated

13 by the taxpayer,

14 (B) such change shall be treated as made

15 with the consent of the Secretary of the Treasury,

16 and

17 (C) the net amount of the adjustments re18 quired to be taken into account by the taxpayer

19 under section 481 of the Internal Revenue Code

20 of 1986 shall be taken into account in such first

21 taxable year.

22 SEC. 202. MODIFICATION TO FOREIGN TAX CREDIT

23 CARRYBACK AND CARRYOVER PERIODS.

24 (a) IN GENERAL.—Section 904(c) (relating to limita25 tion on credit) is amended—
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1 (1) by striking ‘‘in the second preceding taxable

2 year,’’, and

3 (2) by striking ‘‘or fifth’’ and inserting ‘‘fifth,

4 sixth, or seventh’’.

5 (b) EFFECTIVE DATE.—The amendment made by sub6 section (a) shall apply to credits arising in taxable years

7 beginning after December 31, 1999.

Amend the title so as to read: ‘‘A bill to amend the

Internal Revenue Code of 1986 to allow tax-free expenditures from education individual retirement accounts for

elementary and secondary school expenses and to increase

the maximum annual amount of contributions to such accounts, and for other purposes.’’.
Calendar No. 311

105TH CONGRESS

2D SESSION S. 1133

[Report No. 105–164]

A BILL

To amend the Internal Revenue Code of 1986 to

such accounts.maximum annual amount of contributions tosecondary school expenses and to increase thevidual retirement accounts for elementary andallow tax-free expenditures from education indiFEBRUARY 19, 1998

Reported under authority of the order of the Senate of

amendment to the titleFebruary 12, 1998, with an amendment and an