Title: Upskilling and Retraining Assistance Act
Policy area: Taxation

Summary:
Upskilling and Retraining Assistance Act
This bill increases to $12,000 in 2020-2021, the exclusion from employee gross income, for income tax purposes, of employer-paid educational assistance programs.
The bill also expands the definition of educational equipment provided to an employee to include education-related tools and technology and other equipment (e.g., hand tools, computers, software, licensure fees).

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4408 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4408

    To amend the Internal Revenue Code of 1986 to expand and modify 
   employer educational assistance programs, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 4, 2020

 Ms. Hassan (for herself, Mr. Young, 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 expand and modify 
   employer educational assistance programs, and for other purposes.

    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 ``Upskilling and Retraining Assistance 
Act''.

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

    In the case of taxable years beginning after December 31, 2019, and 
before January 1, 2022, section 127(a)(2) of the Internal Revenue Code 
of 1986 shall be applied by substituting ``$12,000'' for ``$5,250'' 
each place it appears.

SEC. 3. EXPENSES FOR EDUCATION-RELATED TOOLS AND TECHNOLOGY.

    (a) In General.--Paragraph (1) of section 127(c) of the Internal 
Revenue Code of 1986 is amended by striking ``equipment'' both places 
it appears in subparagraphs (A) and (C) thereof and inserting 
``education-related tools and technology and other equipment''.
    (b) Education-Related Tools and Technology.--Subsection (c) of 
section 127 of the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph:
            ``(8) Education-related tools and technology.--For purposes 
        of paragraph (1), the term `education-related tools and 
        technology' includes any--
                    ``(A) hand tools and construction equipment,
                    ``(B) computer or peripheral equipment (as defined 
                in section 168(i)(2)(B)),
                    ``(C) computer software (as defined in section 
                197(e)(3)(B)), including any licensing fees,
                    ``(D) internet access and related services 
                (including equipment or technology necessary for 
                internet access),
                    ``(E) internet, mobile, or virtual reality learning 
                tools and technology,
                    ``(F) licensure fees, materials, or other 
                equipment, and
                    ``(G) any other tools or technology as determined 
                by the Secretary, in coordination with the Secretary of 
                Education,
        provided to an employee which is required for the education of 
        the employee or in connection with a course of instruction for 
        the employee, or is required in order for the employee to 
        obtain professional advancement, to obtain any certification, 
        licensure, or employment under any State, regional or national 
        guidelines or regulations applicable to a trade or other 
        skilled profession, or to maintain such a certification, 
        licensure, or employment through a continuing education 
        program.''.
    (c) Employee Retention of Education-Related Tools and Technology.--
Paragraph (1) of section 127(c) of the Internal Revenue Code of 1986 is 
amended by striking ``completion of a course of instruction,'' and 
inserting ``completion of a course of instruction (other than 
education-related tools and technology not described in paragraph 
(8)(D)),''.
    (d) Effective Date.--The amendments made by this section shall 
apply to amounts paid or incurred on or after the first day of the 
calendar quarter which includes the date of the enactment of this Act.
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