instruction:
In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
question:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Teacher and Nurse Support Act of 
2007''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) According to the National Center for Education 
        Statistics, over the next 10 years, the United States will need 
        more than 2,000,000 new teachers to replace the teachers who 
        are retiring or leaving the classroom for other careers.
            (2) The Hart-Rudman National Security Report on education 
        recommended that the President direct the Department of 
        Education to work with the States to devise a comprehensive 
        plan to avert a looming shortage of high-quality teachers.
            (3) According to the National Center for Education 
        Statistics, 20 percent of all new teachers leave the teaching 
        profession within 3 years. Providing loan forgiveness or loan 
        cancellation is one step that would help retain high-quality 
        teachers in schools that need teachers.
            (4) The American Hospital Association has reported more 
        than 118,000 unfilled registered nurse positions in hospitals 
        in the United States. Additionally, the National Commission on 
        Nursing Workforce for Long-Term Care released a report in May, 
        2005, stating that there are nearly 100,000 vacant nursing 
        positions in long-term care facilities on any given day, and 
        the nurse turnover rate exceeds 50 percent. The shortage is 
        costing long-term care facilities an estimated $4 billion a 
        year in recruitment and training expenses.
            (5) College loans are more of a burden than ever for 
        students and families. According to a recent United States 
        Public Interest Research Group report, average student loan 
        debt almost doubled from $9,200 in 1992-1993 to $16,928 in 
        1999-2000.
    (b) Purpose.--The purpose of this Act is to improve access to, and 
the delivery of, high-quality educational and health services 
throughout the United States by reducing the shortage of qualified 
teachers and nurses.

SEC. 3. LOAN FORGIVENESS.

    (a) Loan Forgiveness.--Section 428J of the Higher Education Act of 
1965 (20 U.S.C. 1078-10) is amended to read as follows:

``SEC. 428J. LOAN FORGIVENESS FOR TEACHERS AND NURSES.

    ``(a) Statement of Purpose.--It is the purpose of this section to 
encourage individuals to enter and continue in the teaching and nursing 
professions.
    ``(b) Program Authorized.--
            ``(1) In general.--The Secretary shall carry out a program 
        to forgive, in accordance with this section, the student loan 
        debt of any borrower who has one or more loans described under 
        paragraph (2) made on or after October 1, 1998, and who--
                    ``(A) has been employed--
                            ``(i) as a full-time teacher--
                                    ``(I) in a school that qualifies 
                                under section 465(a)(2)(A) for loan 
                                cancellation for Perkins loan 
                                recipients who teach in those schools;
                                    ``(II) if employed as a secondary 
                                school teacher, is teaching a subject 
                                area that is relevant to the borrower's 
                                academic major as certified by the 
                                chief administrative officer of the 
                                public or nonprofit private secondary 
                                school in which the borrower is 
                                employed; and
                                    ``(III) if employed as an 
                                elementary school teacher, has 
                                demonstrated, as certified by the chief 
                                administrative officer of the public or 
                                nonprofit private elementary school in 
                                which the borrower is employed, 
                                knowledge and teaching skills in 
                                reading, writing, mathematics, and 
                                other areas of the elementary school 
                                curriculum; or
                            ``(ii) as a full-time eligible nurse--
                                    ``(I) in a clinical setting; or
                                    ``(II) as a member of the nursing 
                                faculty at an accredited school of 
                                nursing (as those terms are defined in 
                                section 801 of the Public Health 
                                Service Act (42 U.S.C. 296)); and
                    ``(B) is not in default on a loan for which the 
                borrower seeks forgiveness.
            ``(2) Method of loan forgiveness.--To provide the loan 
        forgiveness authorized in paragraph (1), the Secretary shall, 
        subject to paragraph (3), carry out a program--
                    ``(A) through the holder of the loan, to assume the 
                obligation to repay a qualified loan amount (as 
                determined under subsection (c)) for a loan made under 
                section 428 or 428H of this part; and
                    ``(B) to cancel a qualified loan amount (as so 
                determined) for a Federal Direct Stafford Loan or a 
                Federal Direct Unsubsidized Stafford Loan made under 
                part D of this title;
            ``(3) Treatment of consolidation loans.--A loan amount for 
        a loan made under section 428C or section 455(g) may be a 
        qualified loan amount for the purposes of paragraph (2) only to 
        the extent that such loan amount was used to repay a loan made 
        under section 428 or 428H, a Federal Direct Stafford Loan, or a 
        Federal Direct Unsubsidized Stafford Loan for a borrower who 
        meets the requirements of paragraph (1), as determined in 
        accordance with regulations prescribed by the Secretary.
    ``(c) Qualified Loan Amount.--
            ``(1) In general.--
                    ``(A) Aggregate amount.--The Secretary shall, in 
                installments in accordance with subparagraph (B), 
                forgive under this section not more than $17,500 in the 
                aggregate of the student loan obligation of a borrower.
                    ``(B) Annual installments.--The Secretary shall 
                forgive the student loan obligation of a borrower in 
                annual installments after each of 5 years of service 
                described in clause (i) or (ii) of subsection 
                (b)(1)(A)(i) in an amount not to exceed the lesser of 
                the remaining outstanding obligation of the borrower 
                or--
                            ``(i) $2,000 at the completion of the first 
                        year of such service;
                            ``(ii) $2,500 at the completion of the 
                        second year of such service;
                            ``(iii) $3,500 at the completion of the 
                        third year of such service;
                            ``(iv) $4,500 at the completion of the 
                        fourth year of such service; and
                            ``(v) $5,000 at the completion of the fifth 
                        year of such service.
            ``(2) Forbearance on qualified loan amount.--A holder of a 
        loan on which a borrower is seeking forgiveness under this 
        section--
                    ``(A) shall grant forbearance, at the request of 
                the borrower, in annual increments for each of the 
                years of qualifying service if the holder believes, at 
                the time of the borrower's annual request, that the 
                amount expected to be forgiven under this section at 
                the completion of the period of qualifying service will 
                satisfy the anticipated remaining outstanding balance 
                on the loan; and
                    ``(B) may offer other forbearance options to the 
                borrower.
    ``(d) Regulations.--The Secretary is authorized to issue such 
regulations as may be necessary to carry out the provisions of this 
section.
    ``(e) Construction.--Nothing in this section shall be construed to 
authorize any refunding of any repayment of a loan.
    ``(f) List of Schools.--If the list of schools in which a teacher 
may perform service pursuant to subsection (b)(1)(A)(i) is not 
available before May 1 of any year, the Secretary may use the list for 
the year preceding the year for which the determination is made to make 
the service determination.
    ``(g) Additional Eligibility Provisions.--
            ``(1) Continued eligibility for teachers.--Any teacher who 
        performs service in a school that--
                    ``(A) meets the requirements of subsection 
                (b)(1)(A)(i)(I) in any year during such service; and
                    ``(B) in a subsequent year fails to meet the 
                requirements of that subsection,
        may continue to teach in the school and shall be eligible for 
        loan forgiveness pursuant to subsection (b).
            ``(2) Prevention of double benefits.--No borrower may, for 
        the same service, receive a benefit under both this subsection 
        and--
                    ``(A) subtitle D of title I of the National and 
                Community Service Act of 1990 (42 U.S.C. 12571 et 
                seq.); or
                    ``(B) section 846 of the Public Health Service Act 
                (42 U.S.C. 297n).
    ``(h) Definitions.--In this section:
            ``(1) Eligible nurse.--The term `eligible nurse' means a 
        nurse who meets all of the following:
                    ``(A) The nurse graduated from--
                            ``(i) an accredited school of nursing (as 
                        those terms are defined in section 801 of the 
                        Public Health Service Act (42 U.S.C. 296));
                            ``(ii) a nursing center; or
                            ``(iii) an academic health center that 
                        provides nurse training.
                    ``(B) The nurse holds a valid and unrestricted 
                license to practice nursing in the State in which the 
                nurse practices in a clinical setting.
                    ``(C) The nurse holds 1 or more of the following:
                            ``(i) A graduate degree in nursing or 
                        equivalent degree.
                            ``(ii) A nursing degree from a collegiate 
                        school of nursing (as defined in section 801 of 
                        the Public Health Service Act (42 U.S.C. 296)).
                            ``(iii) A nursing degree from an associate 
                        degree school of nursing (as defined in section 
                        801 of the Public Health Service Act (42 U.S.C. 
                        296)).
                            ``(iv) A nursing degree from a diploma 
                        school of nursing (as defined in section 801 of 
                        the Public Health Service Act (42 U.S.C. 296)).
            ``(2) Year.--The term `year', where applied to service as a 
        teacher (or service as a member of the nursing faculty at an 
        accredited school of nursing (as those terms are defined in 
        section 801 of the Public Health Service Act (42 U.S.C. 296))), 
        means an academic year as defined by the Secretary.''.
    (b) Repeal of Loan Cancellation Provision.--Section 460 of the 
Higher Education Act of 1965 (20 U.S.C. 1087j) is repealed.

SEC. 4. PHASE OUT OF CURRENT PROGRAM.

    An individual who began the required period of teaching described 
in section 428J(b)(1) or 460(b)(1)(A) of the Higher Education Act of 
1965 (20 U.S.C. 1078-10 and 1087j) as such sections were in effect on 
the day before the date of enactment of this Act, shall--
            (1) be eligible to receive loan forgiveness or loan 
        cancellation in the amount described in, and in accordance with 
        the requirements of, such sections as in effect on the day 
        before the date of enactment of this Act; and
            (2) not be eligible to receive loan forgiveness under 
        section 428J of the Higher Education Act of 1965 as in effect 
        on the date of enactment of this Act.
answer:
Teacher and Nurse Support Act of 2007 - Amends the Higher Education Act of 1965 to increase to a maximum of $17,500 the aggregate student loan obligation eligible for forgiveness or cancellation under the Federal Family Education Loan or Direct Loan programs for teachers who serve full-time in certain elementary or secondary schools that enroll a high proportion of disadvantaged students.

Includes, under these student loan forgiveness and cancellation programs, nurses who serve in a clinical setting or as a member of the nursing faculty at an accredited school of nursing. Directs the Secretary of Education to repay such loan obligation in annual installments up to specified maximum amounts after each of five years of such service.


question:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Farm and Ranch Risk Management 
Act''.

SEC. 2. FARM AND RANCH RISK MANAGEMENT ACCOUNTS.

    (a) In General.--Subpart C of part II of subchapter E of chapter 1 
of the Internal Revenue Code of 1986 (relating to taxable year for 
which deductions taken) is amended by inserting after section 468B the 
following:

``SEC. 468C. FARM AND RANCH RISK MANAGEMENT ACCOUNTS.

    ``(a) Deduction Allowed.--In the case of an individual engaged in 
an eligible farming business or commercial fishing, there shall be 
allowed as a deduction for any taxable year the amount paid in cash by 
the taxpayer during the taxable year to a Farm and Ranch Risk 
Management Account (hereinafter referred to as the `FARRM Account').
    ``(b) Limitation.--
            ``(1) Contributions.--The amount which a taxpayer may pay 
        into the FARRM Account for any taxable year shall not exceed 20 
        percent of so much of the taxable income of the taxpayer 
        (determined without regard to this section) which is 
        attributable (determined in the manner applicable under section 
        1301) to any eligible farming business or commercial fishing.
            ``(2) Distributions.--Distributions from a FARRM Account 
        may not be used to purchase, lease, or finance any new fishing 
        vessel, add capacity to any fishery, or otherwise contribute to 
        the overcapitalization of any fishery. The Secretary of 
        Commerce shall implement regulations to enforce this paragraph.
    ``(c) Eligible Businesses.--For purposes of this section--
            ``(1) Eligible farming business.--The term `eligible 
        farming business' means any farming business (as defined in 
        section 263A(e)(4)) which is not a passive activity (within the 
        meaning of section 469(c)) of the taxpayer.
            ``(2) Commercial fishing.--The term `commercial fishing' 
        has the meaning given such term by section (3) of the Magnuson-
        Stevens Fishery Conservation and Management Act (16 U.S.C. 
        1802) but only if such fishing is not a passive activity 
        (within the meaning of section 469(c)) of the taxpayer.
    ``(d) FARRM Account.--For purposes of this section--
            ``(1) In general.--The term `FARRM Account' means a trust 
        created or organized in the United States for the exclusive 
        benefit of the taxpayer, but only if the written governing 
        instrument creating the trust meets the following requirements:
                    ``(A) No contribution will be accepted for any 
                taxable year in excess of the amount allowed as a 
                deduction under subsection (a) for such year.
                    ``(B) The trustee is a bank (as defined in section 
                408(n)) or another person who demonstrates to the 
                satisfaction of the Secretary that the manner in which 
                such person will administer the trust will be 
                consistent with the requirements of this section.
                    ``(C) The assets of the trust consist entirely of 
                cash or of obligations which have adequate stated 
                interest (as defined in section 1274(c)(2)) and which 
                pay such interest not less often than annually.
                    ``(D) All income of the trust is distributed 
                currently to the grantor.
                    ``(E) The assets of the trust will not be 
                commingled with other property except in a common trust 
                fund or common investment fund.
            ``(2) Account taxed as grantor trust.--The grantor of a 
        FARRM Account shall be treated for purposes of this title as 
        the owner of such Account and shall be subject to tax thereon 
        in accordance with subpart E of part I of subchapter J of this 
        chapter (relating to grantors and others treated as substantial 
        owners).
    ``(e) Inclusion of Amounts Distributed.--
            ``(1) In general.--Except as provided in paragraph (2), 
        there shall be includible in the gross income of the taxpayer 
        for any taxable year--
                    ``(A) any amount distributed from a FARRM Account 
                of the taxpayer during such taxable year, and
                    ``(B) any deemed distribution under--
                            ``(i) subsection (f)(1) (relating to 
                        deposits not distributed within 5 years),
                            ``(ii) subsection (f)(2) (relating to 
                        cessation in eligible farming business), and
                            ``(iii) subparagraph (A) or (B) of 
                        subsection (f)(3) (relating to prohibited 
                        transactions and pledging account as security).
            ``(2) Exceptions.--Paragraph (1)(A) shall not apply to--
                    ``(A) any distribution to the extent attributable 
                to income of the Account, and
                    ``(B) the distribution of any contribution paid 
                during a taxable year to a FARRM Account to the extent 
                that such contribution exceeds the limitation 
                applicable under subsection (b) if requirements similar 
                to the requirements of section 408(d)(4) are met.
        For purposes of subparagraph (A), distributions shall be 
        treated as first attributable to income and then to other 
        amounts.
    ``(f) Special Rules.--
            ``(1) Tax on deposits in account which are not distributed 
        within 5 years.--
                    ``(A) In general.--If, at the close of any taxable 
                year, there is a nonqualified balance in any FARRM 
                Account--
                            ``(i) there shall be deemed distributed 
                        from such Account during such taxable year an 
                        amount equal to such balance, and
                            ``(ii) the taxpayer's tax imposed by this 
                        chapter for such taxable year shall be 
                        increased by 10 percent of such deemed 
                        distribution.
                The preceding sentence shall not apply if an amount 
                equal to such nonqualified balance is distributed from 
                such Account to the taxpayer before the due date 
                (including extensions) for filing the return of tax 
                imposed by this chapter for such year (or, if earlier, 
                the date the taxpayer files such return for such year).
                    ``(B) Nonqualified balance.--For purposes of 
                subparagraph (A), the term `nonqualified balance' means 
                any balance in the Account on the last day of the 
                taxable year which is attributable to amounts deposited 
                in such Account before the 4th preceding taxable year.
                    ``(C) Ordering rule.--For purposes of this 
                paragraph, distributions from a FARRM Account (other 
                than distributions of current income) shall be treated 
                as made from deposits in the order in which such 
                deposits were made, beginning with the earliest 
                deposits.
            ``(2) Cessation in eligible business.--At the close of the 
        first disqualification period after a period for which the 
        taxpayer was engaged in an eligible farming business or 
        commercial fishing, there shall be deemed distributed from the 
        FARRM Account of the taxpayer an amount equal to the balance in 
        such Account (if any) at the close of such disqualification 
        period. For purposes of the preceding sentence, the term 
        `disqualification period' means any period of 2 consecutive 
        taxable years for which the taxpayer is not engaged in an 
eligible farming business or commercial fishing.
            ``(3) Certain rules to apply.--Rules similar to the 
        following rules shall apply for purposes of this section:
                    ``(A) Section 220(f)(8) (relating to treatment on 
                death).
                    ``(B) Section 408(e)(2) (relating to loss of 
                exemption of account where individual engages in 
                prohibited transaction).
                    ``(C) Section 408(e)(4) (relating to effect of 
                pledging account as security).
                    ``(D) Section 408(g) (relating to community 
                property laws).
                    ``(E) Section 408(h) (relating to custodial 
                accounts).
            ``(4) Time when payments deemed made.--For purposes of this 
        section, a taxpayer shall be deemed to have made a payment to a 
        FARRM Account on the last day of a taxable year if such payment 
        is made on account of such taxable year and is made on or 
        before the due date (without regard to extensions) for filing 
        the return of tax for such taxable year.
            ``(5) Individual.--For purposes of this section, the term 
        `individual' shall not include an estate or trust.
            ``(6) Deduction not allowed for self-employment tax.--The 
        deduction allowable by reason of subsection (a) shall not be 
        taken into account in determining an individual's net earnings 
        from self-employment (within the meaning of section 1402(a)) 
        for purposes of chapter 2.
    ``(g) Reports.--The trustee of a FARRM Account shall make such 
reports regarding such Account to the Secretary and to the person for 
whose benefit the Account is maintained with respect to contributions, 
distributions, and such other matters as the Secretary may require 
under regulations. The reports required by this subsection shall be 
filed at such time and in such manner and furnished to such persons at 
such time and in such manner as may be required by such regulations.''.
    (b) Tax on Excess Contributions.--
            (1) Subsection (a) of section 4973 of such Code (relating 
        to tax on excess contributions to certain tax-favored accounts 
        and annuities) is amended by striking ``or'' at the end of 
        paragraph (3), by redesignating paragraph (4) as paragraph (5), 
        and by inserting after paragraph (3) the following:
            ``(4) a FARRM Account (within the meaning of section 
        468C(d)), or''.
            (2) Section 4973 of such Code is amended by adding at the 
        end the following:
    ``(g) Excess Contributions to FARRM Accounts.--For purposes of this 
section, in the case of a FARRM Account (within the meaning of section 
468C(d)), the term `excess contributions' means the amount by which the 
amount contributed for the taxable year to the Account exceeds the 
amount which may be contributed to the Account under section 468C(b) 
for such taxable year. For purposes of this subsection, any 
contribution which is distributed out of the FARRM Account in a 
distribution to which section 468C(e)(2)(B) applies shall be treated as 
an amount not contributed.''.
            (3) The section heading for section 4973 of such Code is 
        amended to read as follows:

``SEC. 4973. EXCESS CONTRIBUTIONS TO CERTAIN ACCOUNTS, ANNUITIES, 
              ETC.''.

            (4) The table of sections for chapter 43 of such Code is 
        amended by striking the item relating to section 4973 and 
        inserting the following:

                              ``Sec. 4973. Excess contributions to 
                                        certain accounts, annuities, 
                                        etc.''.
    (c) Tax on Prohibited Transactions.--
            (1) Subsection (c) of section 4975 of such Code (relating 
        to tax on prohibited transactions) is amended by adding at the 
        end the following:
            ``(6) Special rule for farrm accounts.--A person for whose 
        benefit a FARRM Account (within the meaning of section 468C(d)) 
        is established shall be exempt from the tax imposed by this 
        section with respect to any transaction concerning such account 
        (which would otherwise be taxable under this section) if, with 
        respect to such transaction, the account ceases to be a FARRM 
        Account by reason of the application of section 468C(f)(3)(A) 
        to such account.''.
            (2) Paragraph (1) of section 4975(e) of such Code is 
        amended by redesignating subparagraphs (E) and (F) as 
        subparagraphs (F) and (G), respectively, and by inserting after 
        subparagraph (D) the following:
                    ``(E) a FARRM Account described in section 
                468C(d),''.
    (d) Failure To Provide Reports on FARRM Accounts.--Paragraph (2) of 
section 6693(a) of such Code (relating to failure to provide reports on 
certain tax-favored accounts or annuities) is amended by redesignating 
subparagraphs (C) and (D) as subparagraphs (D) and (E), respectively, 
and by inserting after subparagraph (B) the following:
                    ``(C) section 468C(g) (relating to FARRM 
                Accounts),''.
    (e) Clerical Amendment.--The table of sections for subpart C of 
part II of subchapter E of chapter 1 of such Code is amended by 
inserting after the item relating to section 468B the following:

                              ``Sec. 468C. Farm and Ranch Risk 
                                        Management Accounts.''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
answer:
Farm and Ranch Risk Management Act - Amends the Internal Revenue Code to allow an individual engaged in an eligible farming or commercial fishing business a deduction for any taxable year of up to 20 percent of taxable income attributable to the eligible farming or commercial fishing business which was paid in cash by the taxpayer to a Farm and Ranch Risk Management Account (FARRM Account).Includes distributions from a FARRM account in the taxpayer's gross income, and subjects to a special ten percent surtax any distributions not made within five years of contribution. Establishes a tax on excess contributions, but exempts the taxpayer from the tax on certain prohibited transactions.


question:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``IRA Savings Opportunity Act of 
1997''.

SEC. 2. MODIFICATIONS TO INDIVIDUAL RETIREMENT PLANS.

    (a) Increase in Income Limitations.--Subparagraph (B) of section 
219(g)(3) of the Internal Revenue Code of 1986 is amended--
            (1) by striking ``$40,000'' in clause (i) and inserting 
        ``$80,000, and
            (2) by striking ``$25,000'' in clause (ii) and inserting 
        ``$50,000''.
    (b) Extension of Phaseout Range.--Clause (ii) of section 
219(g)(2)(A) of such Code is amended by striking ``$10,000'' and 
inserting ``$20,000''.
    (c) Additional $2,000 of Nondeductible Contributions Permitted for 
Certain Individuals Who Are Not Active Participants in Employer 
Plans.--
            (1) In general.--Subparagraph (B) of section 408(o)(2) of 
        such Code (relating to nondeductible limit) is amended by 
        adding at the end the following new clause:
                            ``(iii) Additional $2,000 of nondeductible 
                        contributions permitted for certain individuals 
                        who are not active participants in employer 
                        plans.--
                                    ``(I) In general.--In the case of 
                                an individual who is not an active 
                                participant (as defined in section 
                                219(g)) for any part of any plan year 
                                ending with or within the taxable year, 
                                the amount determined under clause 
                                (i)(I) shall be increased by $2,000.
                                    ``(II) Reduction based on adjusted 
                                gross income.--The $2,000 amount in 
                                subclause (I) shall be reduced (but not 
                                below zero) by an amount which bears 
                                the same ratio to $2,000 as the excess 
                                of the taxpayer's adjusted gross income 
                                (as determined under section 219(g)(3)) 
                                for the taxable year over the 
                                applicable dollar amount (as defined in 
                                such section) bears to $20,000. The 
                                rules of subparagraphs (B) and (C) of 
                                paragraph (2), and paragraph (4), of 
                                section 219(g) shall apply for purposes 
                                of the preceding sentence.''
            (2) Conforming amendments.--
                    (A) Subsections (a)(1), (b), and (j) of section 408 
                of such Code are each amended by striking ``$2,000'' 
                and inserting ``$4,000''.
                    (B) The last sentence of section 408(d)(5) of such 
                Code is amended by striking before the period ``and by 
                treating the limitation under section 219(b)(1)(A) as 
                being $4,000''.
                    (C) The last sentence of section 4973(b) of such 
                Code (relating to excess contributions) is amended to 
                read as follows: ``For purposes of paragraphs (1)(B) 
                and (2)(C), the amount allowable as a deduction under 
                section 219 shall be computed without regard to section 
                219(g) and by treating the limitation under section 
                219(b)(1)(A) as being $4,000.''
    (d) Eligibility for IRA Deduction Determined Without Regard to 
Spouse's Participation in Pension Plan.--Paragraph (1) of section 
219(g) of such Code (relating to limitation on deduction for active 
participants in certain pension plans) is amended by striking ``or the 
individual's spouse''.
    (e) Alternative Credit for Lower Income Taxpayers.--
            (1) In general.--Subpart A of part IV of subchapter A of 
        chapter 1 of such Code (relating to nonrefundable personal 
        credits) is amended by inserting after section 23 the following 
        new section:

``SEC. 24. RETIREMENT SAVINGS.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 20 percent of the amount which 
would (but for subsection (c)) be allowed as a deduction under section 
219 for such taxable year.
    ``(b) Limitation Based on Adjusted Gross Income.--
            ``(1) In general.--The amount of the credit which would 
        (but for this subsection) be allowed under subsection (a) for 
        the taxable year shall be reduced (but not below zero) by an 
        amount which bears the same ratio to such amount of credit as--
                    ``(A) the excess of--
                            ``(i) the taxpayer's adjusted gross income 
                        for such taxable year, over
                            ``(ii) the applicable dollar amount, bears 
                        to
                    ``(B) $10,000.
            ``(2) Rounding.--Any amount determined under this 
        subsection which is not a multiple of $10 shall be rounded to 
        the next lowest $10.
            ``(3) Applicable dollar amount.--For purposes of this 
        subsection, the term `applicable dollar amount' means--
                    ``(A) in the case of a taxpayer filing a joint 
                return, $40,000,
                    ``(B) in the case of any other taxpayer (other than 
                a married individual filing a separate return), 
                $25,000, and
                    ``(C) in the case of a married individual filing a 
                separate return, zero.
        The rule of section 219(g)(4) shall apply for purposes of this 
        paragraph.
    ``(c) Coordination With Deduction.--No deduction shall be allowed 
under section 219 for amount paid by or on behalf of an individual for 
any taxable year if any such amount (with respect to such individual) 
is taken into account in determining the credit under this section for 
such year.''
            (2) Clerical amendment.--The table of sections for such 
        subpart A is amended by inserting after the item relating to 
        section 23 the following new item:

                              ``Sec. 24. Retirement savings.''
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 3. COORDINATION OF IRA DEDUCTION LIMIT WITH ELECTIVE DEFERRAL 
              LIMIT.

    (a) In General.--Section 219(b) of the Internal Revenue Code of 
1986 (relating to maximum amount of deduction) is amended by adding at 
the end the following new paragraph:
            ``(5) Coordination with elective deferral limit.--The 
        amount determined under paragraph (1) and subsection (c)(1)(A) 
        with respect to any individual for any taxable year shall not 
        exceed the excess (if any) of--
                    ``(A) the limitation applicable for the taxable 
                year under section 402(g)(1), over
                    ``(B) the elective deferrals (as defined in section 
                402(g)(3)) of such individual for such taxable year.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.
answer:

IRA Savings Opportunity Act of 1997 - Amends the Internal Revenue Code, with respect to retirement savings plans, to, among other things: (1) double income limitations; (2) permit a worker without an employer plan to contribute an additional $2,000 to a plan; and (3) allow a credit of 20 percent, subject to income limitations, for amounts which would otherwise be allowed as a qualified retirement deduction.