I 
118TH CONGRESS 
1ST SESSION H. R. 5102 
To amend the Internal Revenue Code of 1986 to provide matching payments 
for ABLE account contributions by certain individuals, and for other 
purposes. 
IN THE HOUSE OF REPRESENTATIVES 
AUGUST 1, 2023 
Mrs. DINGELL 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 provide 
matching payments for ABLE account contributions by 
certain individuals, 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 ‘‘ABLE MATCH (Mak-
ing Able a Tool to Combat Hardship) Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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(1) People with disabilities are more than twice 
as likely to live in poverty than people without dis-
abilities. 
(2) Households containing an adult with a dis-
ability that limits their ability to work requires, on 
average, 28 percent more income to obtain the same 
standard of living as similar households without a 
member with a disability. 
(3) The average income of households that in-
clude any working-age people with disabilities is 
$27,500 less than the average household income of 
people without disabilities. 
(4) The Stephen Beck, Jr., Achieving a Better 
Life Experience Act of 2014 provided for qualified 
ABLE programs, which provided eligible people with 
disabilities the opportunity to open tax-advantaged 
savings accounts without the risk of losing the bene-
fits they need to participate in society. 
(5) As of September 2022, there were 131,436 
ABLE accounts open in the United States with an 
average balance of $8,623. 
SEC. 3. PURPOSES. 
The purposes of this Act are— 
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(1) to encourage and assist individuals with dis-
abilities with fewer resources to save using ABLE 
accounts; 
(2) to increase uptake and continued utilization 
of ABLE accounts by people with disabilities; and 
(3) to provide for a Federal match for new and 
existing ABLE accounts held by individuals with an 
annual income less than 200 percent of the Federal 
poverty limit. 
SEC. 4. MATCHING PAYMENTS FOR ABLE ACCOUNT CON-
TRIBUTIONS BY CERTAIN INDIVIDUALS. 
(a) IN GENERAL.—Subchapter B of chapter 65 of the 
Internal Revenue Code of 1986 is amended by adding at 
the end the following new section: 
‘‘SEC. 6434. MATCHING PAYMENTS FOR ABLE ACCOUNT 
CONTRIBUTIONS BY CERTAIN INDIVIDUALS. 
‘‘(a) IN GENERAL.— 
‘‘(1) ALLOWANCE OF CREDIT.—Any individual 
who is the designated beneficiary of an ABLE ac-
count as of the last day of the taxable year and who 
makes qualified ABLE account contributions for 
such taxable year shall be allowed a credit for such 
taxable year in an amount equal to the applicable 
percentage of so much of the qualified ABLE ac-
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count contributions made by such individual for the 
taxable year as does not exceed $2,000. 
‘‘(2) PAYMENT OF CREDIT.—The credit under 
this section shall be— 
‘‘(A) treated as allowed by subpart C of 
part IV of subchapter A of chapter 1, and 
‘‘(B) paid by the Secretary as a contribu-
tion (as soon as practicable after the individual 
has filed a tax return making a claim for such 
credit for the taxable year) to the ABLE ac-
count of the individual. 
‘‘(b) OVERALL LIMITATION.—The amount of the 
credit allowed under this section with respect to any indi-
vidual shall not exceed the excess of— 
‘‘(1) the amount in effect under section 
529A(b)(2)(B) for the taxable year, over 
‘‘(2) the amount of contributions made to the 
ABLE account of the individual for such taxable 
year. 
‘‘(c) APPLICABLE PERCENTAGE.—For purposes of 
this section— 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the applicable percentage is 100 percent. 
‘‘(2) PHASEOUT.—The percentage under para-
graph (1) shall be reduced (but not below zero) by 
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the number of percentage points which bears the 
same ratio to 50 percentage points as— 
‘‘(A) the excess of— 
‘‘(i) the taxpayer’s modified adjusted 
gross income for such taxable year, over 
‘‘(ii) the applicable dollar amount, 
bears to 
‘‘(B) $20,000. 
If any reduction determined under this paragraph is 
not a whole percentage point, such reduction shall be 
rounded to the next lowest whole percentage point. 
‘‘(3) APPLICABLE DOLLAR AMOUNT.—The ap-
plicable dollar amount is— 
‘‘(A) in the case of a joint return, $56,000, 
‘‘(B) in the case of a head of household (as 
defined in section 2(b)), 3⁄4 of the amount ap-
plicable under subparagraph (A), and 
‘‘(C) in any other case, 1⁄2 of the amount 
applicable under subparagraph (A). 
‘‘(d) 
QUALIFIED
ABLE 
ACCOUNT
CONTRIBU-
TIONS.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified ABLE 
account contributions’ means, with respect to any 
taxable year, the amount of contributions made by 
the individual to the ABLE account of which such 
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individual is the designated beneficiary. Such term 
shall not include any amount attributable to a pay-
ment under subsection (a)(2). 
‘‘(2) REDUCTION
FOR
CERTAIN
DISTRIBU-
TIONS.— 
‘‘(A) IN GENERAL.—The qualified ABLE 
account contributions determined under para-
graph (1) for a taxable year shall be reduced 
(but not below zero) by the aggregate distribu-
tions received by the individual during the test-
ing period from the ABLE account. 
‘‘(B) TESTING PERIOD.—For purposes of 
subparagraph (A), the testing period, with re-
spect to a taxable year, is the period which in-
cludes— 
‘‘(i) such taxable year, 
‘‘(ii) the 2 preceding taxable years, 
and 
‘‘(iii) the period after such taxable 
year and before the due date (including ex-
tensions) for filing the return of tax for 
such taxable year. 
‘‘(C) EXCEPTED
DISTRIBUTIONS.—There 
shall not be taken into account under subpara-
graph (A) the amount of distributions under a 
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qualified ABLE program (within the meaning 
of section 529A) that is equal to amounts not 
included in gross income with respect to such 
distributions under section 529A(c)(1)(B) (re-
lating to distributions for qualified disability ex-
penses). 
‘‘(D) TREATMENT OF DISTRIBUTIONS RE-
CEIVED BY SPOUSE OF INDIVIDUAL.—For pur-
poses of determining distributions received by 
an individual under subparagraph (A) for any 
taxable year, any distribution received by the 
spouse of such individual shall be treated as re-
ceived by such individual if such individual and 
spouse file a joint return for such taxable year 
and for the taxable year during which the 
spouse receives the distribution. 
‘‘(e) ABLE ACCOUNT.—For purposes of this section, 
the term ‘ABLE account’ has the meaning given such 
term under section 529A. 
‘‘(f) OTHER DEFINITIONS AND SPECIAL RULES.— 
‘‘(1) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of this section, the term ‘modified ad-
justed gross income’ means adjusted gross income 
determined without regard to sections 911, 931, and 
933. 
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‘‘(2) ERRONEOUS CREDITS.— 
‘‘(A) IN GENERAL.—If any contribution is 
erroneously paid under subsection (a)(2), in-
cluding a payment that is not made to an 
ABLE account, the amount of such erroneous 
payment shall be treated as an underpayment 
of tax (other than for purposes of part II of 
subchapter A of chapter 68) for the taxable 
year in which the Secretary determines the pay-
ment is erroneous. 
‘‘(B) DISTRIBUTION OF ERRONEOUS CRED-
ITS.—In the case of a contribution to which 
subparagraph (A) applies, section 72 shall not 
apply to the distribution of such contribution 
(and any income attributable thereto) if such 
distribution is received not later than the day 
prescribed by law (including extensions of time) 
for filing the individual’s return for such tax-
able year. 
‘‘(3) EXCEPTION
FROM
REDUCTION
OR
OFF-
SET.—Any payment made to any individual under 
this section shall not be— 
‘‘(A) subject to reduction or offset pursu-
ant to subsection (c), (d), (e), or (f) of section 
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6402 or any similar authority permitting offset, 
or 
‘‘(B) reduced or offset by other assessed 
Federal taxes that would otherwise be subject 
to levy or collection. 
‘‘(g) INFLATION ADJUSTMENTS.— 
‘‘(1) IN GENERAL.—In the case of any taxable 
year beginning in a calendar year after 2027, the 
$56,000 amount in subsection (c)(3)(A) shall be in-
creased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2026’ for 
‘calendar year 2016’ in subparagraph (A)(ii) 
thereof. 
‘‘(2) ROUNDING.—Any increase determined 
under paragraph (1) shall be rounded to the nearest 
multiple of $1,000.’’. 
(b) TREATMENT OF CERTAIN POSSESSIONS.— 
(1) PAYMENTS TO POSSESSIONS WITH MIRROR 
CODE TAX SYSTEMS.—The Secretary of the Treas-
ury shall pay to each possession of the United States 
which has a mirror code tax system amounts equal 
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to the loss (if any) to that possession by reason of 
the amendments made by this section. Such 
amounts shall be determined by the Secretary of the 
Treasury based on information provided by the gov-
ernment of the respective possession. 
(2) PAYMENTS TO OTHER POSSESSIONS.—The 
Secretary of the Treasury shall pay to each posses-
sion of the United States which does not have a mir-
ror code tax system amounts estimated by the Sec-
retary of the Treasury as being equal to the aggre-
gate benefits (if any) that would have been provided 
to residents of such possession by reason of the 
amendments made by this section if a mirror code 
tax system had been in effect in such possession. 
The preceding sentence shall not apply unless the re-
spective possession has a plan, which has been ap-
proved by the Secretary of the Treasury, under 
which such possession will promptly distribute such 
payments to its residents. 
(3) COORDINATION
WITH
CREDIT
ALLOWED 
AGAINST UNITED STATES INCOME TAXES.—No cred-
it shall be allowed against United States income 
taxes under section 6434 of the Internal Revenue 
Code of 1986 (as added by this section) to any per-
son— 
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(A) to whom a credit is allowed against 
taxes imposed by the possession by reason of 
the amendments made by this section, or 
(B) who is eligible for a payment under a 
plan described in paragraph (2). 
(4) MIRROR CODE TAX SYSTEM.—For purposes 
of this subsection, the term ‘‘mirror code tax sys-
tem’’ means, with respect to any possession of the 
United States, the income tax system of such posses-
sion if the income tax liability of the residents of 
such possession under such system is determined by 
reference to the income tax laws of the United 
States as if such possession were the United States. 
(5) TREATMENT OF PAYMENTS.—For purposes 
of section 1324 of title 31, United States Code, the 
payments under this subsection shall be treated in 
the same manner as a refund due from a credit pro-
vision referred to in subsection (b)(2) of such sec-
tion. 
(c) DEFICIENCIES.—Section 6211(b)(4) of the Inter-
nal Revenue Code of 1986 is amended by striking ‘‘and 
6433’’ and inserting ‘‘6433, and 6434’’. 
(d) PAYMENT AUTHORITY.—Section 1324(b)(2) of 
title 31, United States Code, is amended by striking ‘‘or 
6433’’ and inserting ‘‘6433, or 6434’’. 
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(e) CONFORMING AMENDMENTS.— 
(1) Subpart A of part IV of subchapter A of 
chapter 1 of the Internal Revenue Code of 1986 is 
amended by striking section 25B (and the item re-
lated to such section in the table of sections for such 
subpart). 
(2) The table of sections for subchapter B of 
chapter 65 of such Code is amended by adding at 
the end the following new item: 
‘‘Sec. 6434. Matching payments for ABLE account contributions by certain in-
dividuals.’’. 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2026. 
SEC. 5. DEMOGRAPHIC REPORTING WITH RESPECT TO 
ABLE ACCOUNTS. 
(a) IN GENERAL.—Section 529A(d)(1) of the Inter-
nal Revenue Code of 1986 is amended by adding at the 
end the following new sentence: ‘‘In addition to the infor-
mation required under the preceding sentence, each officer 
or employee having control of the qualified ABLE pro-
gram of their designee shall include in reports provided 
to the Secretary demographic information (including race, 
gender, and disability type) relating to the designated 
beneficiaries of ABLE accounts under the program.’’. 
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(b) EFFECTIVE DATE.—The amendment made by 
this section shall apply to reports made after the date of 
the enactment of this section. 
SEC. 6. GRANTS TO PROMOTE USE OF ABLE ACCOUNTS 
AND THE MATCHING CONTRIBUTION CREDIT. 
(a) IN GENERAL.—The Secretary of the Treasury (or 
the Secretary’s delegate) may award grants to States to 
enable States to promote ABLE accounts (as defined in 
section 529A(e) of the Internal Revenue Code of 1986) 
and matching payments for contributions to such accounts 
(as provided under section 6434 of such Code, as added 
by this Act). 
(b) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to carry out this section 
$5,000,000 for each of fiscal years 2025 through 2029. 
Æ 
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