I 
117TH CONGRESS 
1ST SESSION H. R. 4428 
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 
JULY 13, 2021 
Mr. SMITH of Missouri (for himself and Mr. DANNY K. DAVIS of Illinois) in-
troduced 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Upward Mobility En-
hancement Act’’. 
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SEC. 2. INCREASE IN EXCLUSION FOR EDUCATIONAL AS-
SISTANCE PROGRAMS. 
(a) IN GENERAL.—Section 127(a)(2) of the Internal 
Revenue Code of 1986 is amended to read as follows: 
‘‘(2) MAXIMUM EXCLUSION.— 
‘‘(A) IN
GENERAL.—This section shall 
apply only to the first $12,000 of educational 
assistance furnished to an individual during a 
calendar year, in the case of assistance for edu-
cation below the graduate level. 
‘‘(B) INFLATION
ADJUSTMENT.—In the 
case of any calendar year after 2021, the dollar 
amount in subparagraph (A) shall be increased 
by an amount equal to— 
‘‘(i) such dollar amount, multiplied by 
‘‘(ii) the cost-of-living adjustment de-
termined under section 1(f)(3) for the cal-
endar year in which such taxable year be-
gins by substituting ‘calendar year 2020’ 
for ‘calendar year 2016’ in subparagraph 
(A)(ii) thereof. 
If any increase determined under this subpara-
graph is not a multiple of $50, such increase 
shall be rounded to the next lowest multiple of 
$50.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2020. 
SEC. 3. EXPENSES FOR EDUCATION-RELATED TOOLS AND 
TECHNOLOGY. 
(a) IN GENERAL.—Section 127(c)(1) of the Internal 
Revenue Code of 1986 is amended by striking ‘‘equip-
ment’’ both places it appears in subparagraphs (A) and 
(C) thereof and inserting ‘‘education-related tools and 
technology and other equipment’’. 
(b) 
EDUCATION-RELATED
TOOLS
AND
TECH-
NOLOGY.—Section 127(c) of such Code is amended by 
adding at the end the following new paragraph: 
‘‘(8) EDUCATION-RELATED TOOLS AND TECH-
NOLOGY.—For purposes of paragraph (1), the term 
‘education-related tools and technology’ includes 
any— 
‘‘(A) hand tools and construction equip-
ment, 
‘‘(B) computer or peripheral equipment (as 
defined in section 168(i)(2)(B)), 
‘‘(C) computer software (as defined in sec-
tion 197(e)(3)(B)), 
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‘‘(D) Internet access and related services 
(including equipment or technology necessary 
for Internet access), 
‘‘(E) Internet, mobile, or virtual reality 
learning tools and technology, 
‘‘(F) licensure fees, materials, or other 
equipment, and 
‘‘(G) any other tools or technology as de-
termined by the Secretary, 
provided to an employee which is required for the 
education of the employee or in connection with a 
course of instruction for the employee, or is required 
in order for the employee to obtain professional ad-
vancement, to obtain any certification, licensure, or 
employment under any State, regional or national 
guidelines or regulations applicable to a trade or 
other skilled profession, or to maintain such a cer-
tification, licensure, or employment through a con-
tinuing education program.’’ 
(c) EMPLOYEE
RETENTION
OF
EDUCATION-RE-
LATED TOOLS AND TECHNOLOGY.—Section 127(c)(1) of 
such Code is amended by striking ‘‘completion of a course 
of instruction,’’ and inserting ‘‘completion of a course of 
instruction (other than education-related tools and tech-
nology not described in paragraph (8)(D)),’’. 
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(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to amounts paid or incurred on 
or after the first day of the calendar quarter which in-
cludes the date of the enactment of this Act. 
Æ 
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