I 
110TH CONGRESS 
2D SESSION 
H. R. 6036 
To amend the Internal Revenue Code of 1986 to establish lifelong learning 
accounts to provide an incentive to save for education. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 13, 2008 
Mr. EMANUEL (for himself and Mr. RAMSTAD) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addi-
tion to the Committee on Education and Labor, for a period to be subse-
quently determined by the Speaker, in each case for consideration of such 
provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to establish 
lifelong learning accounts to provide an incentive to save 
for education. 
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 ‘‘Lifelong Learning Ac-
counts Act of 2008’’. 
SEC. 2. LIFELONG LEARNING ACCOUNTS. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 (relating to refundable credits) is amended by redes-
ignating section 36 as section 37 and by inserting after 
section 35 the following new section: 
‘‘SEC. 36. CONTRIBUTIONS TO LIFELONG LEARNING AC-
COUNTS. 
‘‘(a) CREDIT ALLOWED.—In the case of an eligible 
individual, there shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year an 
amount equal to the applicable percentage of the contribu-
tions (other than rollover contributions described in sub-
section (e)(5)) paid in cash during such taxable year by 
or on behalf of such individual to a lifelong learning ac-
count of such individual. 
‘‘(b) LIMITATIONS AND DEFINITIONS RELATED TO 
ALLOWANCE OF CREDIT.— 
‘‘(1) DOLLAR
LIMITATION.—The amount of 
contributions taken into account under subsection 
(a) with respect to any eligible individual for any 
taxable year shall not exceed the lesser of— 
‘‘(A) $2,500, or 
‘‘(B) an amount equal to the compensation 
(as defined in section 219(f)(1)) includible in 
the individual’s gross income for such taxable 
year. 
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‘‘(2) LIMITATIONS
BASED
ON
MODIFIED
AD-
JUSTED GROSS INCOME.— 
‘‘(A) PHASEOUT OF DOLLAR LIMITATION 
BASED ON ACCOUNT BENEFICIARY’S MODIFIED 
ADJUSTED
GROSS
INCOME.—The 
$2,500 
amount contained in paragraph (1)(A) shall be 
reduced (but not below zero) by the account 
beneficiary’s reduction amount. 
‘‘(B) 
PER
CONTRIBUTOR
LIMITATION 
BASED
ON
CONTRIBUTOR’S
MODIFIED
AD-
JUSTED GROSS INCOME.—In the case of a con-
tributor who is an individual (other than an em-
ployer of the account beneficiary), the aggre-
gate amount of the contributions of such con-
tributor which may be taken into account under 
subsection (a) with respect to any eligible indi-
vidual for any taxable year shall not exceed the 
excess (if any) of $2,500 over such contribu-
tor’s reduction amount. 
‘‘(C) ACCOUNT BENEFICIARY’S REDUCTION 
AMOUNT.—For purposes of subparagraph (A), 
the account beneficiary’s reduction amount is 
the amount which bears the same ratio to 
$2,500 as— 
‘‘(i) the excess of— 
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‘‘(I) the account beneficiary’s 
modified adjusted gross income for 
such taxable year, over 
‘‘(II) 
$100,000 
(twice 
such 
amount in the case of a joint return), 
bears to 
‘‘(ii) $20,000 (twice such amount in 
the case of a joint return). 
For purposes of the preceding sentence, the 
term ‘modified adjusted gross income’ means 
adjusted gross income increased by any amount 
excluded from gross income under section 911, 
931, or 933. 
‘‘(D) 
CONTRIBUTOR’S
REDUCTION 
AMOUNT.—For purposes of subparagraph (B), 
the contributor’s reduction amount is the 
amount that would be determined under sub-
paragraph (C) if ‘contributor’ were substituted 
for ‘account beneficiary’ each place it appears 
therein. 
‘‘(E) SPECIAL RULE FOR MARRIED INDI-
VIDUALS FILING A SEPARATE RETURN.—In the 
case of a married individual filing a separate re-
turn, subparagraph (C)(i)(II) shall be applied 
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by substituting ‘zero’ for the dollar amount 
therein. 
‘‘(3) TREATMENT
OF
EMPLOYER
CONTRIBU-
TIONS.— 
‘‘(A) EXCLUSION FROM GROSS INCOME.— 
Gross income shall not include any contribution 
to a lifelong learning account made by an em-
ployer of the account beneficiary to the extent 
that the aggregate amount of such contribu-
tions made during the taxable year does not ex-
ceed the limitation in effect under paragraph 
(1) (determined without regard to subpara-
graph (B) of this paragraph) for such taxable 
year with respect to such beneficiary. 
‘‘(B) COORDINATION WITH CREDIT.—The 
limitation which would (but for this subpara-
graph) apply under paragraph (1) with respect 
to the eligible individual for any taxable year 
shall be reduced (but not below zero) by the ag-
gregate amount contributed to lifelong learning 
accounts of such individual which is excludable 
from the taxpayer’s gross income for such tax-
able year under subparagraph (A) (and such 
amount shall not be taken into account in de-
termining the credit under subsection (a)). 
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‘‘(4) APPLICABLE PERCENTAGE.—For purposes 
of this section, the term ‘applicable percentage’ 
means— 
‘‘(A) 50 percent with respect to the first 
$500 of contributions taken into account under 
subsection (a) with respect to any eligible indi-
vidual for any taxable year, and 
‘‘(B) 25 percent with respect to so much of 
such contributions as exceeds $500. 
‘‘(5) ELIGIBLE INDIVIDUAL.—For purposes of 
this section, the term ‘eligible individual’ means any 
individual for any taxable year if, as of the first day 
of such taxable year, such individual has attained 
age 18 but has not attained age 71. 
‘‘(c) LIFELONG LEARNING ACCOUNTS.—For pur-
poses of this section— 
‘‘(1) IN GENERAL.—The term ‘lifelong learning 
account’ means a trust created or organized in the 
United States as a lifelong learning account exclu-
sively for the purpose of paying the qualified edu-
cation expenses of the account beneficiary, but only 
if the written governing instrument creating the 
trust meets the following requirements: 
‘‘(A) No contribution will be accepted un-
less it is in cash. 
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‘‘(B) Except in the case of a rollover con-
tribution described in subsection (e)(5), no con-
tribution will be accepted if such contribution, 
when added to all previous contributions to the 
trust for the calendar year, would exceed 
$2,500. 
‘‘(C) The trustee is a bank (as defined in 
section 408(n)), an agency or instrumentality of 
a State, or another person who demonstrates to 
the satisfaction of the Secretary that the man-
ner in which that person will administer the 
trust will be consistent with the requirements of 
this section. 
‘‘(D) No part of the trust assets will be in-
vested in life insurance contracts. 
‘‘(E) No part of the trust assets will be in-
vested in any collectible (as defined in section 
408(m)). 
‘‘(F) The assets of the trust will not be 
commingled with other property except in a 
common trust fund or common investment 
fund. 
‘‘(G) The interest of an individual in the 
balance in his account is nonforfeitable. 
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‘‘(2) QUALIFIED EDUCATION EXPENSES.—The 
term ‘qualified education expenses’ means amounts 
paid by the account beneficiary for education of, or 
courses of instruction (including training and ap-
prenticeship programs) for, the account beneficiary 
or the account beneficiary’s spouse, including— 
‘‘(A) tuition, fees, and similar payments, 
and 
‘‘(B) books, supplies, equipment, tools, and 
information technology devices, required for 
such course or education. 
Such term shall not include amounts paid for any 
course or other education involving sports, games, or 
hobbies. 
‘‘(3) ACCOUNT
BENEFICIARY.—The term ‘ac-
count beneficiary’ means the individual on whose be-
half the lifelong learning account was established. 
‘‘(4) CERTAIN RULES TO APPLY.—Rules similar 
to the following rules shall apply for purposes of this 
section: 
‘‘(A) Section 219(f)(3) (relating to time 
when contributions deemed made). 
‘‘(B) Section 408(g) (relating to commu-
nity property laws). 
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‘‘(C) Section 408(h) (relating to custodial 
accounts). 
‘‘(d) TAX TREATMENT OF ACCOUNTS.— 
‘‘(1) IN GENERAL.—A lifelong learning account 
is exempt from taxation under this subtitle unless 
such account has ceased to be a lifelong learning ac-
count. Notwithstanding the preceding sentence, any 
such account is subject to the taxes imposed by sec-
tion 511 (relating to imposition of tax on unrelated 
business income of charitable, etc. organizations). 
‘‘(2) ACCOUNT TERMINATIONS.—Rules similar 
to the rules of paragraphs (2) and (4) of section 
408(e) shall apply to lifelong learning accounts, and 
any amount treated as distributed under such rules 
shall be treated as not used to pay qualified edu-
cation expenses. 
‘‘(e) TAX TREATMENT OF DISTRIBUTIONS.— 
‘‘(1) INCLUSION
IN
GROSS
INCOME.—Any 
amount distributed out of a lifelong learning account 
shall be included in gross income by the distributee. 
‘‘(2) ADDITIONAL TAX.— 
‘‘(A) IN GENERAL.—Except as otherwise 
provided in this subsection, the tax imposed by 
this chapter on the account beneficiary for any 
taxable year in which there is a nonqualified 
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distribution from a lifelong learning account 
shall be increased by 10 percent of the amount 
of such distribution. 
‘‘(B) 
EXCEPTIONS.—Subparagraph 
(A) 
shall not apply if the distribution is made after 
the account beneficiary dies, becomes disabled 
(within the meaning of section 72(m)(7)), or 
has attained age 70. 
‘‘(3) NONQUALIFIED DISTRIBUTION.—For pur-
poses of this section, the term ‘nonqualified distribu-
tion’ means the excess (if any) of— 
‘‘(A) the aggregate distributions from the 
account during the taxable year, over 
‘‘(B) the qualified education expenses of 
the account beneficiary for the taxable year. 
‘‘(4) EXCESS CONTRIBUTIONS RETURNED BE-
FORE DUE DATE OF RETURN.— 
‘‘(A) IN
GENERAL.—If any excess con-
tribution is contributed for a taxable year to 
any lifelong learning account of an individual, 
paragraphs (1) and (2) shall not apply to dis-
tributions from the lifelong learning accounts of 
such individual (to the extent such distributions 
do not exceed the aggregate excess contribu-
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tions to all such accounts of such individual for 
such year) if— 
‘‘(i) such distribution is received by 
the individual on or before the last day 
prescribed by law (including extensions of 
time) for filing such individual’s return for 
such taxable year, and 
‘‘(ii) such distribution is accompanied 
by the amount of net income attributable 
to such excess contribution. 
Any net income described in clause (ii) shall be 
included in the gross income of the individual 
for the taxable year in which it is received. 
‘‘(B) EXCESS
CONTRIBUTION.—For pur-
poses of subparagraph (A), the term ‘excess 
contribution’ means any contribution (other 
than a rollover contribution described in para-
graph (6)) which is not taken into account for 
purposes of determining the credit allowed 
under subsection (a) or the amount excludable 
from the taxpayer’s gross income under sub-
section (b)(3). 
‘‘(5) ROLLOVER CONTRIBUTION.—An amount is 
described in this paragraph as a rollover contribu-
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tion if it meets the requirements of subparagraphs 
(A) and (B). 
‘‘(A) IN GENERAL.—Paragraphs (1) and 
(2) shall not apply to any amount paid or dis-
tributed from a lifelong learning account to the 
account beneficiary to the extent the amount 
received is paid into a lifelong learning account 
for the benefit of such beneficiary not later 
than the 60th day after the day on which the 
beneficiary receives the payment or distribution. 
‘‘(B) LIMITATION.—This paragraph shall 
not apply to any amount described in subpara-
graph (A) received by an individual from a life-
long learning account if, at any time during the 
1-year period ending on the day of such receipt, 
such individual received any other amount de-
scribed in subparagraph (A) from a lifelong 
learning account to which paragraphs (1) and 
(2) did not apply by reason of the application 
of this paragraph. 
‘‘(6) TRANSFER OF ACCOUNT INCIDENT TO DI-
VORCE.—The transfer of an individual’s interest in 
a lifelong learning account to an individual’s spouse 
or former spouse under a divorce or separation in-
strument described in subparagraph (A) of section 
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71(b)(2) shall not be considered a taxable transfer 
made by such individual notwithstanding any other 
provision of this subtitle, and such interest shall, 
after such transfer, be treated as a lifelong learning 
account with respect to which such spouse is the ac-
count beneficiary. 
‘‘(7) TREATMENT AFTER DEATH OF ACCOUNT 
BENEFICIARY.— 
‘‘(A) TREATMENT IF DESIGNATED BENE-
FICIARY
IS
SPOUSE.—If the account bene-
ficiary’s surviving spouse acquires such bene-
ficiary’s interest in a lifelong learning account 
by reason of being the designated beneficiary of 
such account at the death of the account bene-
ficiary, such lifelong learning account shall be 
treated as if the spouse were the account bene-
ficiary. 
‘‘(B) OTHER CASES.— 
‘‘(i) IN GENERAL.—If, by reason of 
the death of the account beneficiary, any 
person acquires the account beneficiary’s 
interest in a lifelong learning account in a 
case to which subparagraph (A) does not 
apply— 
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‘‘(I) such account shall cease to 
be a lifelong learning account as of 
the date of death, and 
‘‘(II) an amount equal to the fair 
market value of the assets in such ac-
count on such date shall be includible 
if such person is not the estate of 
such beneficiary, in such person’s 
gross income for the taxable year 
which includes such date, or if such 
person is the estate of such bene-
ficiary, in such beneficiary’s gross in-
come for the last taxable year of such 
beneficiary. 
‘‘(ii) 
DEDUCTION
FOR
ESTATE 
TAXES.—An appropriate deduction shall be 
allowed under section 691(c) to any person 
(other than the decedent or the decedent’s 
spouse) with respect to amounts included 
in gross income under clause (i) by such 
person. 
‘‘(f) REPORTS.—The trustee of a lifelong learning ac-
count shall make such reports regarding such account to 
the Secretary and to the account beneficiary with respect 
to contributions, distributions, and such other matters as 
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the Secretary may require under regulations. The reports 
required by this subsection shall be filed at such time and 
in such manner and furnished to such individuals at such 
time and in such manner as may be required by those reg-
ulations.’’. 
(b) TAX ON EXCESS CONTRIBUTIONS.—Section 4973 
of the Internal Revenue Code of 1986 is amended— 
(1) by striking ‘‘or’’ at the end of subsection 
(a)(4), by inserting ‘‘or’’ at the end of subsection 
(a)(5), and by inserting after subsection (a)(5) the 
following new paragraph: 
‘‘(6) a lifelong learning account (within the 
meaning of section 36(c)),’’, and 
(2) by adding at the end the following new sub-
section: 
‘‘(h) EXCESS CONTRIBUTIONS TO LIFELONG LEARN-
ING ACCOUNTS.—For purposes of this section, in the case 
of lifelong learning accounts (within the meaning of sec-
tion 36(c)), the term ‘excess contributions’ means the sum 
of— 
‘‘(1) the aggregate amount contributed for the 
taxable year to the accounts (other than rollover 
contributions described in section 36(e)(5)) which is 
not taken into account for purposes of determining 
the credit allowed under section 36(a) or the amount 
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excludable from the taxpayer’s gross income under 
section 36(b)(3), and 
‘‘(2) the amount determined under this sub-
section for the preceding taxable year, reduced by 
the sum of— 
‘‘(A) the distributions out of the accounts 
with respect to which additional tax was im-
posed under section 36(e)(2)(A) for the taxable 
year, and 
‘‘(B) the excess (if any) of— 
‘‘(i) the maximum amount of con-
tributions which may be taken into account 
under section 36(a) for the taxable year, 
over 
‘‘(ii) the amount contributed to the 
accounts for the taxable year. 
For purposes of this subsection, any contribu-
tion which is distributed out of the lifelong 
learning account in a distribution to which sec-
tion 36(e)(5) applies shall be treated as an 
amount not contributed.’’. 
(c) TAX ON PROHIBITED TRANSACTIONS.— 
(1) Paragraph (1) of section 4975(e) of the In-
ternal Revenue Code of 1986 (relating to prohibited 
transactions) is amended by redesignating subpara-
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graph (G) as subparagraph (H), by striking ‘‘or’’ at 
the end of subparagraph (F), and by inserting after 
subparagraph (F) the following new subparagraph: 
‘‘(G) a lifelong learning account described 
in section 36(c), or’’. 
(2) Subsection (c) of section 4975 of such Code 
is amended by adding at the end the following new 
paragraph: 
‘‘(7) SPECIAL RULE FOR LIFELONG LEARNING 
ACCOUNTS.—An individual for whose benefit a life-
long learning account is established shall be exempt 
from the tax imposed by this section with respect to 
any transaction concerning such account (which 
would otherwise be taxable under this section) if, 
with respect to such transaction, the account ceases 
to be a lifelong learning account by reason of the ap-
plication of section 36(d)(2) to such account.’’. 
(d) FAILURE TO PROVIDE REPORTS ON LIFELONG 
LEARNING ACCOUNTS.—Paragraph (2) of section 6693(a) 
of the Internal Revenue Code of 1986 is amended by strik-
ing ‘‘and’’ at the end of subparagraph (D), by redesig-
nating subparagraph (E) as subparagraph (F), and by in-
serting after subparagraph (D) the following new subpara-
graph: 
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‘‘(E) section 36(f) (relating to lifelong 
learning accounts), and’’. 
(e) EXCLUSION FROM EMPLOYMENT TAXES.— 
(1) 
FEDERAL
INSURANCE
CONTRIBUTIONS 
ACT.—Subsection (a) of section 3121 of the Internal 
Revenue Code of 1986 is amended by striking ‘‘or’’ 
at the end of paragraph (21), by striking the period 
at the end of paragraph (22) and inserting ‘‘; or’’, 
and by inserting after paragraph (22) the following 
new paragraph: 
‘‘(23) any payment made to or for the benefit 
of an employee if at the time of such payment it is 
reasonable to believe that the employee will be able 
to exclude such payment from income under section 
36(b)(3).’’. 
(2) RAILROAD RETIREMENT TAX.—Subsection 
(e) of section 3231 of such Code is amended by add-
ing at the end the following new paragraph: 
‘‘(13) LEARNING ACCOUNT CONTRIBUTIONS.— 
The term ‘compensation’ shall not include any pay-
ment made to or for the benefit of an employee if 
at the time of such payment it is reasonable to be-
lieve that the employee will be able to exclude such 
payment from income under section 36(b)(3).’’. 
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(3) UNEMPLOYMENT TAX.—Subsection (b) of 
section 3306 of such Code is amended by striking 
‘‘or’’ at the end of paragraph (18), by striking the 
period at the end of paragraph (19) and inserting ‘‘; 
or’’, and by inserting after paragraph (19) the fol-
lowing new paragraph: 
‘‘(20) any payment made to or for the benefit 
of an employee if at the time of such payment it is 
reasonable to believe that the employee will be able 
to exclude such payment from income under section 
36(b)(3).’’. 
(4) WITHHOLDING TAX.—Subsection (a) of sec-
tion 3401 of such Code is amended by striking ‘‘or’’ 
at the end of paragraph (21), by striking the period 
at the end of paragraph (22) and inserting ‘‘; or’’, 
and by inserting after paragraph (22) the following 
new paragraph: 
‘‘(23) any payment made to or for the benefit 
of an employee if at the time of such payment it is 
reasonable to believe that the employee will be able 
to exclude such payment from income under section 
36(b)(3).’’. 
(5) EMPLOYER CONTRIBUTIONS REQUIRED TO 
BE SHOWN ON W–2.—Subsection (a) of section 6051 
of such Code is amended by striking ‘‘and’’ at the 
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end of paragraph (12), by striking the period at the 
end of paragraph (13) and inserting ‘‘, and’’, and by 
inserting after paragraph (13) the following new 
paragraph: 
‘‘(14) the amount contributed to any learning 
account (as defined in section 224) on behalf of such 
employee.’’. 
(6) SOCIAL
SECURITY
TRUST
FUNDS
HELD 
HARMLESS.—There is hereby appropriated (out of 
any money in the Treasury not otherwise appro-
priated) for each fiscal year to each fund under the 
Social Security Act an amount equal to the reduc-
tion in the transfers to such fund for such fiscal 
year by reason of the amendment made by para-
graph (1). 
(f) EXEMPTION FROM ERISA REQUIREMENTS.— 
Subsection (b) of section 4 of the Employee Retirement 
Income Security Act of 1974 is amended by striking ‘‘or’’ 
at the end of paragraph (4), by striking the period at the 
end of paragraph (5) and inserting ‘‘; or’’, and by insert-
ing after paragraph (5) the following new paragraph: 
‘‘(6) such plan is maintained solely for the pur-
poses of establishing, and making contributions to, 
lifelong learning accounts (as defined in section 36 
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of the Internal Revenue Code of 1986) on behalf of 
employees.’’. 
(g) CONFORMING AMENDMENTS.— 
(1) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by redesignating the 
item relating to section 36 as an item relating to 
section 37 and by inserting before such item the fol-
lowing new item: 
‘‘Sec. 36. Contributions to lifelong learning accounts.’’. 
(2) Section 6211(b)(4)(A) of such Code is 
amended by striking ‘‘34,’’ and all that follows 
through ‘‘6428’’ and inserting ‘‘34, 35, 36, 53(e), 
and 6428’’. 
(3) Section 1324(b)(2) of title 31, United 
States Code, is amended by inserting ‘‘, 36,’’ after 
‘‘section 35’’. 
(h) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
SEC. 3. CREDIT FOR EMPLOYER CONTRIBUTIONS TO LIFE-
LONG LEARNING ACCOUNTS AND ADMINIS-
TRATIVE EXPENSES OF CERTAIN SMALL EM-
PLOYERS. 
(a) IN GENERAL.—Subpart D of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 (relating to business related credits) is amended by 
adding at the end the following new section: 
‘‘SEC. 45O. LIFELONG LEARNING ACCOUNTS CREDIT. 
‘‘(a) IN GENERAL.—For purposes of section 38, the 
lifelong learning accounts credit is the sum of— 
‘‘(1) the lifelong learning account contributions 
credit, and 
‘‘(2) in the case of an eligible employer, the 
small employer lifelong learning account administra-
tive costs credit. 
‘‘(b) LIFELONG LEARNING ACCOUNT CONTRIBU-
TIONS CREDIT.— 
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘lifelong learning account contribu-
tions credit’ means the amount equal to 25 percent 
of the aggregate amount paid or incurred by the tax-
payer during the taxable year as contributions to 
lifelong learning accounts (as defined in section 36) 
of employees of the taxpayer. 
‘‘(2) DOLLAR LIMITATION.—The amount of the 
contributions taken into account under paragraph 
(1) with respect to any employee for any taxable 
year shall not exceed $2,500. 
‘‘(c) SMALL EMPLOYER LIFELONG LEARNING AC-
COUNT ADMINISTRATIVE COSTS CREDIT.— 
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‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘small employer lifelong learning ac-
count administrative costs credit’ means, in the case 
of an eligible employer, the amount equal to 50 per-
cent of the aggregate amount paid or incurred by 
the taxpayer during the taxable year as administra-
tive expenses in carrying out a program to make 
payments to the lifelong learning accounts (as de-
fined in section 36) of employees of the taxpayer. 
‘‘(2) DOLLAR LIMITATION.—The amount of the 
credit determined under this subsection for any tax-
able year shall not exceed— 
‘‘(A) $500 for the first credit year and 
each of the 2 taxable years immediately fol-
lowing the first credit year, and 
‘‘(B) zero for any other taxable year. 
‘‘(3) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(A) ELIGIBLE EMPLOYER.—The term ‘eli-
gible employer’ has the meaning given such 
term by section 408(p)(2)(C)(i). 
‘‘(B) FIRST
CREDIT
YEAR.—The term 
‘first credit year’ means the first taxable year 
for which the taxpayer claims a credit under 
this section. 
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‘‘(4) SPECIAL
RULES.—For purposes of this 
subsection, rules similar to the rules of paragraphs 
(1), (2), and (3) of section 45E(e) shall apply.’’. 
(b) CREDIT PART OF GENERAL BUSINESS CREDIT.— 
Section 38(b) of such Code is amended by striking ‘‘and’’ 
at the end of paragraph (30), by striking the period at 
the end of paragraph (31) and inserting ‘‘, plus’’, and by 
adding at the end the following new paragraph: 
‘‘(32) the lifelong learning accounts credit de-
termined under section 45O.’’. 
(c) DEDUCTION
FOR
UNUSED
CREDIT.—Section 
196(c) of such Code is amended by striking ‘‘and’’ at the 
end of paragraph (12), by striking the period at the end 
of paragraph (13) and inserting ‘‘, and’’, and by adding 
at the end the following new paragraph: 
‘‘(14) the lifelong learning accounts credit de-
termined under section 45O.’’. 
(d) CLERICAL AMENDMENT.—The table of sections 
for subpart D of part IV of subchapter A of chapter 1 
of such Code is amended by adding at the end the fol-
lowing new item: 
‘‘Sec. 45O. Lifelong learning accounts credit.’’. 
(e) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2008. 
Æ 
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