I 

118TH CONGRESS 

1ST SESSION H. R. 5102 

To amend the Internal Revenue Code of 1986 to provide matching payments 

for ABLE account contributions by certain individuals, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

AUGUST 1, 2023 

Mrs. DINGELL 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 provide 

matching payments for ABLE account contributions by 

certain individuals, 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 ‘‘ABLE MATCH (Mak5 ing Able a Tool to Combat Hardship) Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) People with disabilities are more than twice 

2 as likely to live in poverty than people without dis3 abilities. 

4 (2) Households containing an adult with a dis5 ability that limits their ability to work requires, on 

6 average, 28 percent more income to obtain the same 

7 standard of living as similar households without a 

8 member with a disability. 

9 (3) The average income of households that in10 clude any working-age people with disabilities is 

11 $27,500 less than the average household income of 

12 people without disabilities. 

13 (4) The Stephen Beck, Jr., Achieving a Better 

14 Life Experience Act of 2014 provided for qualified 

15 ABLE programs, which provided eligible people with 

16 disabilities the opportunity to open tax-advantaged 

17 savings accounts without the risk of losing the bene18 fits they need to participate in society. 

19 (5) As of September 2022, there were 131,436 

20 ABLE accounts open in the United States with an 

21 average balance of $8,623. 

22 SEC. 3. PURPOSES. 

23 The purposes of this Act are— 


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1 (1) to encourage and assist individuals with dis2 abilities with fewer resources to save using ABLE 

3 accounts; 

4 (2) to increase uptake and continued utilization 

5 of ABLE accounts by people with disabilities; and 

6 (3) to provide for a Federal match for new and 

7 existing ABLE accounts held by individuals with an 

8 annual income less than 200 percent of the Federal 

9 poverty limit. 

10 SEC. 4. MATCHING PAYMENTS FOR ABLE ACCOUNT CON11 TRIBUTIONS BY CERTAIN INDIVIDUALS. 

12 (a) IN GENERAL.—Subchapter B of chapter 65 of the 

13 Internal Revenue Code of 1986 is amended by adding at 

14 the end the following new section: 

15 ‘‘SEC. 6434. MATCHING PAYMENTS FOR ABLE ACCOUNT 

16 CONTRIBUTIONS BY CERTAIN INDIVIDUALS. 

17 ‘‘(a) IN GENERAL.— 

18 ‘‘(1) ALLOWANCE OF CREDIT.—Any individual 

19 who is the designated beneficiary of an ABLE ac20 count as of the last day of the taxable year and who 

21 makes qualified ABLE account contributions for 

22 such taxable year shall be allowed a credit for such 

23 taxable year in an amount equal to the applicable 

24 percentage of so much of the qualified ABLE acVerDate Sep 11 2014 04:51 Aug 18, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5102.IH H5102

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1 count contributions made by such individual for the 

2 taxable year as does not exceed $2,000. 

3 ‘‘(2) PAYMENT OF CREDIT.—The credit under 

4 this section shall be— 

5 ‘‘(A) treated as allowed by subpart C of 

6 part IV of subchapter A of chapter 1, and 

7 ‘‘(B) paid by the Secretary as a contribu8 tion (as soon as practicable after the individual 

9 has filed a tax return making a claim for such 

10 credit for the taxable year) to the ABLE ac11 count of the individual. 

12 ‘‘(b) OVERALL LIMITATION.—The amount of the 

13 credit allowed under this section with respect to any indi14 vidual shall not exceed the excess of— 

15 ‘‘(1) the amount in effect under section 

16 529A(b)(2)(B) for the taxable year, over 

17 ‘‘(2) the amount of contributions made to the 

18 ABLE account of the individual for such taxable 

19 year. 

20 ‘‘(c) APPLICABLE PERCENTAGE.—For purposes of 

21 this section— 

22 ‘‘(1) IN GENERAL.—Except as provided in para23 graph (2), the applicable percentage is 100 percent. 

24 ‘‘(2) PHASEOUT.—The percentage under para25 graph (1) shall be reduced (but not below zero) by 


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1 the number of percentage points which bears the 

2 same ratio to 50 percentage points as— 

3 ‘‘(A) the excess of— 

4 ‘‘(i) the taxpayer’s modified adjusted 

5 gross income for such taxable year, over 

6 ‘‘(ii) the applicable dollar amount, 

7 bears to 

8 ‘‘(B) $20,000. 

9 If any reduction determined under this paragraph is 

10 not a whole percentage point, such reduction shall be 

11 rounded to the next lowest whole percentage point. 

12 ‘‘(3) APPLICABLE DOLLAR AMOUNT.—The ap13 plicable dollar amount is— 

14 ‘‘(A) in the case of a joint return, $56,000, 

15 ‘‘(B) in the case of a head of household (as 

defined in section 2(b)), 3 16 ⁄4 of the amount ap17 plicable under subparagraph (A), and 

‘‘(C) in any other case, 1 18 ⁄2 of the amount 

19 applicable under subparagraph (A). 

20 ‘‘(d) QUALIFIED ABLE ACCOUNT CONTRIBU21 TIONS.—For purposes of this section— 

22 ‘‘(1) IN GENERAL.—The term ‘qualified ABLE 

23 account contributions’ means, with respect to any 

24 taxable year, the amount of contributions made by 

25 the individual to the ABLE account of which such 


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1 individual is the designated beneficiary. Such term 

2 shall not include any amount attributable to a pay3 ment under subsection (a)(2). 

4 ‘‘(2) REDUCTION FOR CERTAIN DISTRIBU5 TIONS.— 

6 ‘‘(A) IN GENERAL.—The qualified ABLE 

7 account contributions determined under para8 graph (1) for a taxable year shall be reduced 

9 (but not below zero) by the aggregate distribu10 tions received by the individual during the test11 ing period from the ABLE account. 

12 ‘‘(B) TESTING PERIOD.—For purposes of 

13 subparagraph (A), the testing period, with re14 spect to a taxable year, is the period which in15 cludes— 

16 ‘‘(i) such taxable year, 

17 ‘‘(ii) the 2 preceding taxable years, 

18 and 

19 ‘‘(iii) the period after such taxable 

20 year and before the due date (including ex21 tensions) for filing the return of tax for 

22 such taxable year. 

23 ‘‘(C) EXCEPTED DISTRIBUTIONS.—There 

24 shall not be taken into account under subpara25 graph (A) the amount of distributions under a 


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1 qualified ABLE program (within the meaning 

2 of section 529A) that is equal to amounts not 

3 included in gross income with respect to such 

4 distributions under section 529A(c)(1)(B) (re5 lating to distributions for qualified disability ex6 penses). 

7 ‘‘(D) TREATMENT OF DISTRIBUTIONS RE8 CEIVED BY SPOUSE OF INDIVIDUAL.—For pur9 poses of determining distributions received by 

10 an individual under subparagraph (A) for any 

11 taxable year, any distribution received by the 

12 spouse of such individual shall be treated as re13 ceived by such individual if such individual and 

14 spouse file a joint return for such taxable year 

15 and for the taxable year during which the 

16 spouse receives the distribution. 

17 ‘‘(e) ABLE ACCOUNT.—For purposes of this section, 

18 the term ‘ABLE account’ has the meaning given such 

19 term under section 529A. 

20 ‘‘(f) OTHER DEFINITIONS AND SPECIAL RULES.— 

21 ‘‘(1) MODIFIED ADJUSTED GROSS INCOME.— 

22 For purposes of this section, the term ‘modified ad23 justed gross income’ means adjusted gross income 

24 determined without regard to sections 911, 931, and 

25 933. 


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1 ‘‘(2) ERRONEOUS CREDITS.— 

2 ‘‘(A) IN GENERAL.—If any contribution is 

3 erroneously paid under subsection (a)(2), in4 cluding a payment that is not made to an 

5 ABLE account, the amount of such erroneous 

6 payment shall be treated as an underpayment 

7 of tax (other than for purposes of part II of 

8 subchapter A of chapter 68) for the taxable 

9 year in which the Secretary determines the pay10 ment is erroneous. 

11 ‘‘(B) DISTRIBUTION OF ERRONEOUS CRED12 ITS.—In the case of a contribution to which 

13 subparagraph (A) applies, section 72 shall not 

14 apply to the distribution of such contribution 

15 (and any income attributable thereto) if such 

16 distribution is received not later than the day 

17 prescribed by law (including extensions of time) 

18 for filing the individual’s return for such tax19 able year. 

20 ‘‘(3) EXCEPTION FROM REDUCTION OR OFF21 SET.—Any payment made to any individual under 

22 this section shall not be— 

23 ‘‘(A) subject to reduction or offset pursu24 ant to subsection (c), (d), (e), or (f) of section 


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1 6402 or any similar authority permitting offset, 

2 or 

3 ‘‘(B) reduced or offset by other assessed 

4 Federal taxes that would otherwise be subject 

5 to levy or collection. 

6 ‘‘(g) INFLATION ADJUSTMENTS.— 

7 ‘‘(1) IN GENERAL.—In the case of any taxable 

8 year beginning in a calendar year after 2027, the 

9 $56,000 amount in subsection (c)(3)(A) shall be in10 creased by an amount equal to— 

11 ‘‘(A) such dollar amount, multiplied by 

12 ‘‘(B) the cost-of-living adjustment deter13 mined under section 1(f)(3) for the calendar 

14 year in which the taxable year begins, deter15 mined by substituting ‘calendar year 2026’ for 

16 ‘calendar year 2016’ in subparagraph (A)(ii) 

17 thereof. 

18 ‘‘(2) ROUNDING.—Any increase determined 

19 under paragraph (1) shall be rounded to the nearest 

20 multiple of $1,000.’’. 

21 (b) TREATMENT OF CERTAIN POSSESSIONS.— 

22 (1) PAYMENTS TO POSSESSIONS WITH MIRROR

23 CODE TAX SYSTEMS.—The Secretary of the Treas24 ury shall pay to each possession of the United States 

25 which has a mirror code tax system amounts equal 


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1 to the loss (if any) to that possession by reason of 

2 the amendments made by this section. Such 

3 amounts shall be determined by the Secretary of the 

4 Treasury based on information provided by the gov5 ernment of the respective possession. 

6 (2) PAYMENTS TO OTHER POSSESSIONS.—The 

7 Secretary of the Treasury shall pay to each posses8 sion of the United States which does not have a mir9 ror code tax system amounts estimated by the Sec10 retary of the Treasury as being equal to the aggre11 gate benefits (if any) that would have been provided 

12 to residents of such possession by reason of the 

13 amendments made by this section if a mirror code 

14 tax system had been in effect in such possession. 

15 The preceding sentence shall not apply unless the re16 spective possession has a plan, which has been ap17 proved by the Secretary of the Treasury, under 

18 which such possession will promptly distribute such 

19 payments to its residents. 

20 (3) COORDINATION WITH CREDIT ALLOWED

21 AGAINST UNITED STATES INCOME TAXES.—No cred22 it shall be allowed against United States income 

23 taxes under section 6434 of the Internal Revenue 

24 Code of 1986 (as added by this section) to any per25 son— 


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1 (A) to whom a credit is allowed against 

2 taxes imposed by the possession by reason of 

3 the amendments made by this section, or 

4 (B) who is eligible for a payment under a 

5 plan described in paragraph (2). 

6 (4) MIRROR CODE TAX SYSTEM.—For purposes 

7 of this subsection, the term ‘‘mirror code tax sys8 tem’’ means, with respect to any possession of the 

9 United States, the income tax system of such posses10 sion if the income tax liability of the residents of 

11 such possession under such system is determined by 

12 reference to the income tax laws of the United 

13 States as if such possession were the United States. 

14 (5) TREATMENT OF PAYMENTS.—For purposes 

15 of section 1324 of title 31, United States Code, the 

16 payments under this subsection shall be treated in 

17 the same manner as a refund due from a credit pro18 vision referred to in subsection (b)(2) of such sec19 tion. 

20 (c) DEFICIENCIES.—Section 6211(b)(4) of the Inter21 nal Revenue Code of 1986 is amended by striking ‘‘and 

22 6433’’ and inserting ‘‘6433, and 6434’’. 

23 (d) PAYMENT AUTHORITY.—Section 1324(b)(2) of 

24 title 31, United States Code, is amended by striking ‘‘or 

25 6433’’ and inserting ‘‘6433, or 6434’’. 


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1 (e) CONFORMING AMENDMENTS.— 

2 (1) Subpart A of part IV of subchapter A of 

3 chapter 1 of the Internal Revenue Code of 1986 is 

4 amended by striking section 25B (and the item re5 lated to such section in the table of sections for such 

6 subpart). 

7 (2) The table of sections for subchapter B of 

8 chapter 65 of such Code is amended by adding at 

9 the end the following new item: 

‘‘Sec. 6434. Matching payments for ABLE account contributions by certain individuals.’’. 

10 (f) EFFECTIVE DATE.—The amendments made by 

11 this section shall apply to taxable years beginning after 

12 December 31, 2026. 

13 SEC. 5. DEMOGRAPHIC REPORTING WITH RESPECT TO 

14 ABLE ACCOUNTS. 

15 (a) IN GENERAL.—Section 529A(d)(1) of the Inter16 nal Revenue Code of 1986 is amended by adding at the 

17 end the following new sentence: ‘‘In addition to the infor18 mation required under the preceding sentence, each officer 

19 or employee having control of the qualified ABLE pro20 gram of their designee shall include in reports provided 

21 to the Secretary demographic information (including race, 

22 gender, and disability type) relating to the designated 

23 beneficiaries of ABLE accounts under the program.’’. 


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

2 this section shall apply to reports made after the date of 

3 the enactment of this section. 

4 SEC. 6. GRANTS TO PROMOTE USE OF ABLE ACCOUNTS 

5 AND THE MATCHING CONTRIBUTION CREDIT. 

6 (a) IN GENERAL.—The Secretary of the Treasury (or 

7 the Secretary’s delegate) may award grants to States to 

8 enable States to promote ABLE accounts (as defined in 

9 section 529A(e) of the Internal Revenue Code of 1986) 

10 and matching payments for contributions to such accounts 

11 (as provided under section 6434 of such Code, as added 

12 by this Act). 

13 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

14 authorized to be appropriated to carry out this section 

15 $5,000,000 for each of fiscal years 2025 through 2029. 

Æ 


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