(i) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2007. 
SEC. 3. REFUNDABLE CREDIT FOR CONTRIBUTIONS TO 
LIFELONG LEARNING ACCOUNTS. 
(a) GENERAL RULE.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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) GENERAL RULE.—In the case of an eligible indi-
vidual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal to the aggregate amount paid in cash for the taxable 
year by such individual to a lifelong learning account es-
tablished for the benefit of such individual under section 
224. 
‘‘(b) LIMITATIONS.— 
‘‘(1) IN GENERAL.—The credit allowed under 
subsection (a) with respect to any taxable year shall 
not exceed $500. 
‘‘(2) LIMITATION
BASED
ON
MODIFIED
AD-
JUSTED GROSS INCOME.—The amount which would 
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(but for this paragraph) be otherwise allowable as a 
credit under subsection (a) for the taxable year shall 
be reduced (but not below zero) by the amount 
which bears the same ratio to the amount which 
would (but for this paragraph) be otherwise allow-
able under subsection (a) as— 
‘‘(A) the excess of— 
‘‘(i) the taxpayer’s modified adjusted 
gross income (as defined in section 
530(c)(2)) for the taxable year, over 
‘‘(ii) $55,000 (twice such amount in 
the case of a joint return), bears to 
‘‘(B) $10,000 (twice such amount in the 
case of a joint return). 
‘‘(c) ELIGIBLE INDIVIDUAL.—The term ‘eligible indi-
vidual’ has the meaning given such term by section 
224(f)(1).’’. 
(b) CONFORMING AMENDMENTS.— 
(1) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting ‘‘or 
36’’ after ‘‘section 35’’. 
(2) 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 striking the last 
item and inserting the following new items: 
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‘‘Sec. 36. Contributions to lifelong learning accounts. 
‘‘Sec. 37. Overpayments of tax.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
SEC. 4. TAX TREATMENT OF CONTRIBUTIONS BY EMPLOY-
ERS TO LIFELONG LEARNING ACCOUNTS OF 
THEIR EMPLOYEES. 
(a) ALLOWANCE OF CREDIT TO EMPLOYERS.— 
(1) IN GENERAL.—Subpart D of part IV of 
subchapter A of chapter 1 of the Internal Revenue 
Code of 1986 (relating to business related credits) is 
amended by adding at the end the following new sec-
tion: 
‘‘SEC. 45O. CONTRIBUTIONS BY EMPLOYERS TO LIFELONG 
LEARNING ACCOUNTS. 
‘‘(a) IN GENERAL.—For purposes of section 38, in 
the case of an employer, the lifelong learning contribution 
credit determined under this section for any taxable year 
is an amount equal to the aggregate qualified lifelong 
learning contributions of the employer for the taxable 
year. 
‘‘(b) QUALIFIED LIFELONG LEARNING CONTRIBU-
TION.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified lifelong 
learning contribution’ means a contribution made by 
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an employer on behalf of an employee of such em-
ployer to a lifelong learning account established on 
behalf of such employee. 
‘‘(2) DOLLAR LIMITATION.—The aggregate con-
tributions made by an employer on behalf of any em-
ployee which may be treated as qualified lifelong 
learning contributions for any calendar year shall 
not exceed the lesser of— 
‘‘(A) the contributions made by the em-
ployee to the employee’s lifelong learning ac-
count during the calendar year, or 
‘‘(B) $500. 
‘‘(c) NO REDUCTION IN EDUCATION BENEFITS.—No 
credit shall be allowed under this section to any employer 
for any taxable year unless such employer certifies (in 
such form and manner as the Secretary may provide) that 
such employer has not reduced the education and tuition 
benefits provided by the employer to its employees. 
‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section— 
‘‘(1) DEFINITIONS.—Any term used in this sec-
tion which is also used in section 529A shall have 
the same meaning as when used in such section. 
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