Title: Upward Mobility Enhancement Act
Policy area: Taxation

Summary:
Upward Mobility Enhancement Act
This bill amends the Internal Revenue Code, with respect to the exclusion for educational assistance programs, to increase the maximum amount of employer-provided educational assistance that may be excluded from the gross income of an employee.
The bill: (1) specifies that the exclusion applies only to the first $11,500 of educational assistance furnished to an individual during a calendar year, and (2) requires the $11,500 amount to be adjusted for inflation after 2017.
(Under current law, the exclusion applies only to the first $5,250 of educational assistance furnished to an individual during a calendar year and is not adjusted for inflation.)

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[S. 2007 Introduced in Senate (IS)]

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115th CONGRESS
  1st Session
                                S. 2007

 To amend the Internal Revenue Code of 1986 to increase the exclusion 
                  for educational assistance programs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            October 25, 2017

 Mr. Flake (for himself and Ms. Cortez Masto) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to increase the exclusion 
                  for educational assistance programs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Upward Mobility Enhancement Act''.

SEC. 2. INCREASE IN EXCLUSION FOR EDUCATIONAL ASSISTANCE PROGRAMS.

    (a) In General.--Paragraph (2) of section 127(a) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(2) Maximum exclusion.--
                    ``(A) In general.--This section shall apply only to 
                the first $11,500 of educational assistance furnished 
                to an individual during a calendar year.
                    ``(B) Inflation adjustment.--In the case of any 
                calendar year after 2017, the $11,500 amount in 
                subparagraph (A) shall be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which such taxable year begins 
                        by substituting `calendar year 2016' for 
                        `calendar year 1992' in subparagraph (B) 
                        thereof.
                If any increase determined under this subparagraph is 
                not a multiple of $50, such increase shall be rounded 
                to the next lowest multiple of $50.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2016.
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