Upward Mobility Enhancement Act

Bill: 115-hr-4135
Sponsor: full_name: Rep. Smith, Jason [R-MO-8]
Introduced: 2017-10-25
Policy area: Taxation
Subjects: Employee benefits and pensions

Income tax exclusion

Inflation and prices

Student aid and college costs
Latest action: action_date: 2017-10-25
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2017-10-25
action_desc: Introduced in House
text: <p><b>Upward Mobility Enhancement Act </b></p> <p>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. </p> <p>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, in the case of assistance for education below the graduate level; and (2) requires the dollar amount to be adjusted for inflation after 2017. </p> <p>(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.)</p>

tv_txt: I 115th CONGRESS 1st Session H. R. 4135 IN THE HOUSE OF REPRESENTATIVES October 25, 2017 Mr. Smith of Missouri (for himself, Mr. Cuellar , Mr. Rodney Davis of Illinois , Ms. DelBene , and Mr. Danny K. Davis of Illinois ) 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 increase the exclusion for educational assistance programs.

1. Short title This Act may be cited as the Upward Mobility Enhancement Act . 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, in the case of assistance for education below the graduate level. (B) Inflation adjustment In the case of any calendar year after 2017, the dollar 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.