‘‘(2) SPECIAL
RULES.—Rules similar to the 
rules of section 45E(e) shall apply for purposes of 
this section. 
‘‘(3) SELF-EMPLOYED
INDIVIDUALS.—A self- 
employed individual (within the meaning of section 
401(c)(1)(B)) shall not be treated as an employee.’’. 
(2) 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 fol-
lowing new paragraph: 
‘‘(32) the lifelong learning contribution credit 
determined under section 45O.’’. 
(3) 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 para-
graph: 
‘‘(14) the employer lifelong learning contribu-
tion credit determined under section 45O(a).’’. 
(4) CLERICAL AMENDMENT.—The table of sec-
tions for subpart D of part IV of subchapter A of 
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chapter 1 of such Code is amended by adding at the 
end the following new item: 
‘‘Sec. 45O. Contributions by employers to lifelong learning accounts.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
SEC. 5. APPLICATION TO SECTION 529 QUALIFIED TUITION 
PROGRAMS. 
Section 529 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new sub-
section: 
‘‘(g) APPLICATION
OF LIFELONG LEARNING AC-
COUNT RULES.—Not later than 90 days after the date 
of the enactment of this subsection, the Secretary shall— 
‘‘(1) prescribe regulations which provide for the 
application (subject the requirements of subsection 
(i) and (j) of section 224) of the rules of sections 
224 (including the deduction allowed under sub-
section (a) thereof), 36, and 45O, and related provi-
sions, to qualified tuition programs established 
under this section, or 
‘‘(2) submit a report to Congress describing in 
detail the reasons that such regulations have not 
been prescribed.’’. 
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SEC. 6. STUDY ON EFFECTIVENESS OF LIFELONG LEARN-
ING ACCOUNTS DEMONSTRATION PROGRAM. 
(a) IN GENERAL.—The Comptroller General of the 
United States, in consultation with the Secretary of 
Labor, shall conduct a study on lifelong learning accounts 
established under section 224 of the Internal Revenue 
Code of 1986 and the credits established under sections 
36 and 45O of such Code. Such study shall examine the 
effectiveness of the accounts in increasing funding for ca-
reer-related education and the extent to which the tax ben-
efits under such sections are provided to low-income indi-
viduals. 
(b) REPORT.—Not later than January 1, 2009, the 
Secretary of the Treasury shall submit to Congress a re-
port on the study conducted under subsection (a). 
Æ 
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