I 
111TH CONGRESS 
1ST SESSION H. R. 1351 
To amend the Internal Revenue Code of 1986 to treat computer technology 
and equipment as eligible higher education expenses for 529 plans, to 
allow certain individuals a credit against income tax for contributions 
to 529 plans, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 5, 2009 
Mr. POMEROY (for himself, Mr. TIBERI, Mr. MEEK of Florida, Mr. KIND, and 
Ms. JENKINS) 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 treat com-
puter technology and equipment as eligible higher edu-
cation expenses for 529 plans, to allow certain individuals 
a credit against income tax for contributions to 529 
plans, and for other purposes. 
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 ‘‘Savings Enhancement 
for Education in College Act’’. 
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SEC. 2. COMPUTER TECHNOLOGY AND EQUIPMENT AL-
LOWED AS A QUALIFIED HIGHER EDUCATION 
EXPENSE FOR SECTION 529 ACCOUNTS. 
(a) IN GENERAL.—Section 529(e)(3)(A) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘and’’ 
at the end of clause (i), by striking the period at the end 
of clause (ii), and by adding at the end the following: 
‘‘(iii) expenses paid or incurred for 
the purchase of any computer technology 
or equipment (as defined in section 
170(e)(6)(F)(i)) or Internet access and re-
lated services, if such technology, equip-
ment, or services are to be used primarily 
by the designated beneficiary while enrolled 
at an eligible educational institution. 
Clause (iii) shall not include expenses for com-
puter software designed for sports, games, or 
hobbies unless the software is predominantly 
educational in nature.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses paid or incurred after 
December 31, 2010. 
SEC. 3. CREDIT FOR CONTRIBUTIONS TO 529 PLANS. 
(a) IN GENERAL.—Subsection (d) of section 25B of 
the Internal Revenue Code of 1986 (relating to elective 
deferrals and IRA contributions by certain individuals) is 
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amended by redesignating paragraph (2) as paragraph (3) 
and by inserting after paragraph (1) the following new 
paragraph: 
‘‘(2) CONTRIBUTIONS TO QUALIFIED TUITION 
PROGRAMS.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
savings contribution’ includes the amount of 
any purchase or contribution described in para-
graph (1)(A) of section 529(b) to a qualified 
tuition program (as defined in such section) 
if— 
‘‘(i) the taxpayer has the power to au-
thorize distributions and otherwise admin-
ister the account, and 
‘‘(ii) the designated beneficiary of 
such purchase or contribution is the tax-
payer, the taxpayer’s spouse, or an indi-
vidual with respect to whom the taxpayer 
is allowed a deduction under section 151. 
‘‘(B) LIMITATION
BASED
ON
COMPENSA-
TION.—The amount treated as a qualified sav-
ings contribution by reason of subparagraph 
(A) for any taxable year shall not exceed the 
sum of— 
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‘‘(i) the compensation (as defined in 
section 219(f)(1)) includible in the tax-
payer’s gross income for the taxable year, 
and 
‘‘(ii) the amount excluded from the 
taxpayer’s gross income under section 112 
(relating to combat pay) for such year. 
‘‘(C) 
DETERMINATION
OF
ADJUSTED 
GROSS INCOME.—Solely for purposes of deter-
mining the applicable percentage under sub-
section (b) which applies with respect to the 
amount treated as a qualified savings contribu-
tion by reason of subparagraph (A), adjusted 
gross income (determined without regard to this 
subparagraph) shall be increased by the excess 
(if any) of— 
‘‘(i) the social security benefits re-
ceived during the taxable year (within the 
meaning of section 86), over 
‘‘(ii) the amount included in gross in-
come for such year under section 86.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Section 25B of such Code is amended by 
striking ‘‘qualified retirement savings’’ each place it 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contributions made after De-
cember 31, 2009. 
SEC. 4. INVESTMENT DIRECTION UNDER QUALIFIED TUI-
TION PROGRAMS. 
(a) IN GENERAL.—Paragraph (4) of section 529(b) 
of the Internal Revenue Code of 1986 (relating to invest-
ment direction) is amended by striking the period at the 
end and inserting ‘‘more frequently than 2 times per cal-
endar year.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to years beginning after December 
31, 2008. 
Æ 
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