II 

111TH CONGRESS 

2D SESSION S. 3090 

To amend the Internal Revenue Code of 1986 to expand the availability 

of the saver’s credit and to make the credit refundable. 

IN THE SENATE OF THE UNITED STATES 

MARCH 9, 2010 

Mrs. GILLIBRAND 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 

the availability of the saver’s credit and to make the 

credit refundable. 

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

3 SECTION 1. MODIFICATION OF SAVER’S CREDIT. 

4 (a) 50 PERCENT CREDIT FOR ALL TAXPAYERS: EX5 PANSION OF PHASEOUT RANGES.—Subsection (b) of sec6 tion 25B of the Internal Revenue Code of 1986 is amend7 ed to read as follows: 

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

9 this section— 


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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graph (2), the applicable percentage is 50 percent. 

3 ‘‘(2) PHASEOUT.—The percentage under para4 graph (1) shall be reduced (but not below zero) by 

5 the number of percentage points which bears the 

6 same ratio to 50 percentage points as— 

7 ‘‘(A) the excess of— 

8 ‘‘(i) the taxpayer’s adjusted gross in9 come for such taxable year, over 

10 ‘‘(ii) the applicable dollar amount, 

11 bears to 

12 ‘‘(B) the phaseout range. 

13 If any reduction determined under this paragraph is 

14 not a whole percentage point, such reduction shall be 

15 rounded to the nearest whole percentage point. 

16 ‘‘(3) APPLICABLE DOLLAR AMOUNT; PHASEOUT

17 RANGE.— 

18 ‘‘(A) JOINT RETURNS.—Except as pro19 vided in subparagraph (B)— 

20 ‘‘(i) the applicable dollar amount is 

21 $65,000, and 

22 ‘‘(ii) the phaseout range is $20,000. 

23 ‘‘(B) OTHER RETURNS.—In the case of— 

24 ‘‘(i) a head of a household (as defined 

25 in section 2(b)), the applicable dollar 


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amount and the phaseout range shall be 3 1 ⁄4

2 of the amounts applicable under subpara3 graph (A) (as adjusted under paragraph 

4 (4)), and 

5 ‘‘(ii) any taxpayer who is not filing a 

6 joint return and who is not a head of a 

7 household (as so defined), the applicable 

8 dollar amount and the phaseout range 

shall be 1 9 ⁄2 of the amounts applicable 

10 under subparagraph (A) (as so adjusted). 

11 ‘‘(4) INFLATION ADJUSTMENT OF APPLICABLE

12 DOLLAR AMOUNT.—In the case of any taxable year 

13 beginning in a calendar year after 2011, the dollar 

14 amount in paragraph (3)(A)(i) shall be increased by 

15 an amount equal to— 

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

17 ‘‘(B) the cost-of-living adjustment deter18 mined under section 1(f)(3) for the calendar 

19 year in which the taxable year begins, deter20 mined by substituting ‘calendar year 2010’ for 

21 ‘calendar year 1992’ in subparagraph (B) 

22 thereof. 

23 Any increase determined under the preceding sen24 tence shall be rounded to the nearest multiple of 

25 $500.’’. 


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1 (b) CREDIT MADE REFUNDABLE.— 

2 (1) CREDIT MADE REFUNDABLE.—The Internal 

3 Revenue Code of 1986 is amended by moving section 

4 25B to subpart C of part IV of subchapter A of 

5 chapter 1 of such Code (relating to refundable cred6 its), by inserting section 25B after section 36A, and 

7 by redesignating section 25B as section 36B. 

8 (2) CONFORMING AMENDMENTS.— 

9 (A) Sections 24(b)(3)(B), 25(e)(1)(C), 

10 26(a)(1), and 1400C(d) of such Code are each 

11 amended by striking ‘‘25B,’’. 

12 (B) The last sentence of section 25A(i)(5) 

13 of such Code is amended by striking ‘‘25B’’ and 

14 inserting ‘‘36B’’. 

15 (C) Sections 904(i) of such Code is amend16 ed by striking ‘‘23, 24, and 25B,’’ and inserting 

17 ‘‘23 and 24’’. 

18 (D) Section 6211(b)(4)(A) of such Code is 

19 amended by inserting ‘‘36B,’’ after ‘‘36A,’’. 

20 (E) The table of sections for subpart A of 

21 part IV of subchapter A of chapter 1 of such 

22 Code is amended by striking the item relating 

23 to section 25B. 


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1 (F) The table of sections for subpart C of 

2 such part is amended by adding at the end the 

3 following new item: 

‘‘Sec. 36B. Elective deferrals and IRA contributions by certain individuals.’’. 

4 (G) Section 1324(b)(2) of title 31, United 

5 States Code, is amended by inserting ‘‘36B,’’ 

6 after ‘‘36A,’’. 

7 (c) MAXIMUM CONTRIBUTIONS.—Subsection (a) of 

8 section 36B of the Internal Revenue Code of 1986, as re9 designated by subsection (b)(1), is amended to read as fol10 lows: 

11 ‘‘(a) ALLOWANCE OF CREDIT.— 

12 ‘‘(1) IN GENERAL.—In the case of an eligible 

13 individual, there shall be allowed as a credit against 

14 the tax imposed by this subtitle for the taxable year 

15 an amount equal to the applicable percentage of so 

16 much of the qualified retirement savings contribu17 tions of the eligible individual for the taxable year as 

18 do not exceed the contribution limit. 

19 ‘‘(2) CONTRIBUTION LIMIT.—For purposes of 

20 paragraph (1)— 

21 ‘‘(A) IN GENERAL.—Except as otherwise 

22 provided in this paragraph, the contribution 

23 limit is $500 ($1,500 for taxable years begin24 ning after 2021). 


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1 ‘‘(B) ANNUAL INCREASES TO REACH

2 $1,500.—In the case of taxable years beginning 

3 in a calendar year after 2011 and before 2022, 

4 the contribution limit shall be the sum of— 

5 ‘‘(i) the contribution limit for taxable 

6 years beginning in the preceding calendar 

7 year (as increased under this subpara8 graph), and 

9 ‘‘(ii) $100. 

10 ‘‘(C) INFLATION ADJUSTMENT.—In the 

11 case of any taxable year beginning in a calendar 

12 year after 2021, the $1,500 amount in subpara13 graph (A) shall be increased by an amount 

14 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 the taxable year be19 gins, determined by substituting ‘calendar 

20 year 2020’ for ‘calendar year 1992’ in sub21 paragraph (B) thereof. 

22 Any increase determined under the preceding 

23 sentence shall be rounded to the nearest mul24 tiple of $50.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2010. 

Æ 


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