TASK DEFINITION: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
PROBLEM: SECTION 1. INCREASE IN CONTRIBUTION LIMITS AND AMOUNTS AT WHICH PHASE
OUT OF DEDUCTION BEGINS FOR INDIVIDUAL RETIREMENT ACCOUNT
CONTRIBUTIONS.

(a) Increase in Maximum Amount of Contribution to Individual
Retirement Accounts.--
(1) In general.--Subparagraph (A) of section 219(b)(1) of
the Internal Revenue Code of 1986 (relating to maximum amount
of deduction) is amended by striking ''$2,000'' and inserting
''the applicable amount''.
(2) Applicable amount.--Subsection (b) of section 219 of
such Code is amended by adding at the end the following new
paragraph:
''(5) Applicable amount.--
''(A) In general.--For purposes of paragraph (1),
the term 'applicable amount' means--
''(i) for any taxable year beginning in
1997, $2,500,
''(ii) for any taxable year beginning after
1997 and before 2006, the applicable amount
determined under this paragraph for the
preceding taxable year, increased by $500, and
''(iii) for any taxable year beginning
after 2005, $7,000.
''(B) Inflation adjustment.--In the case of a
taxable year beginning in a calendar year after 2006,
the $7,000 amount contained in subparagraph (A)(iii)
shall be increased by an amount equal to--
''(i) such dollar amount, multiplied by
''(ii) the cost-of-living adjustment under
section 1(f)(3) for the calendar year in which
the taxable year begins, determined by
substituting 'calendar year 2005' for 'calendar
year 1992' in subparagraph (B) thereof.
If any amount as adjusted under the preceding sentence
is not a multiple of $10, such amount shall be rounded
to the nearest multiple of $10.''
(b) Increase of Amounts at Which Phase-Out Of Deduction For IRA
Contributions Begins.--
(1) In general.--Clauses (i) and (ii) of section
219(g)(3)(B) of such Code (relating to limitation on deduction
for active participants in certain pension plans) are amended
to read as follows:
''(i) in the case of a taxpayer filing a
joint return--
''(I) for taxable years beginning
in 1997, $50,000,
''(II) for taxable years beginning
after 1997 and before 2003, the
applicable dollar amount determined
under this subclause for the preceding
taxable year, increased by $10,000, and
''(III) for taxable years beginning
after 2002, $110,000.
''(ii) in the case of any other taxpayer
(other than a married individual filing a
separate return)--
''(I) for taxable years beginning
in 1997, $30,000,
''(II) for taxable years beginning
after 1997 and before 2003, the
applicable dollar amount determined
under this subclause for the preceding
taxable year, increased by $5,000, and
''(III) for taxable years beginning
after 2002, $60,000, and''
(2) Inflation adjustment.--Paragraph (3) of section 219(g)
of such Code is amended by adding at the end the following new
subparagraph:
''(C) Inflation adjustment.--In the case of a
taxable year beginning in a calendar year after 2003,
the $110,000 amount contained in subparagraph
(B)(i)(III) and the $60,000 amount contained in
subparagraph (B)(ii)(III) shall each be increased by an
amount equal to--
''(i) such dollar amount, multiplied by
''(ii) the cost-of-living adjustment under
section 1(f)(3) for the calendar year in which
the taxable year begins, determined by
substituting 'calendar year 2004' for 'calendar
year 1992' in subparagraph (B) thereof.
If any amount as adjusted under the preceding sentence
is not a multiple of $100, such amount shall be rounded
to the nearest multiple of $100.''
(c) Conforming Amendments.--
(1) Paragraph (1) of section 408(a) of such Code is amended
by striking ''$2,000'' and inserting ''the applicable amount
(as in effect under section 219(b) for such taxable year)''.
(2) Subparagraph (B) of section 408(b)(2) of such Code is
amended by striking ''$2,000'' and inserting ''the applicable
amount in effect under section 219(b) for the taxable year of
such individual''.
(3) Subsection (b) of section 408 of such Code is amended
in the last sentence by striking '$2,000'' and inserting ''the
applicable amount in effect under section 219(b) for such
taxable year''.
(4) Subparagraph (A) of section 408(d)(5) of such Code is
amended by striking ''dollar amount'' and inserting
''applicable amount''.
(5) Subsection (j) of section 408 of such Code is amended
by striking ''$2,000'' and inserting ''applicable''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 1996.

SEC. 2. PENALTY-FREE DISTRIBUTIONS FROM INDIVIDUAL RETIREMENT PLANS,
401(k) PLANS, ETC.

(a) Distributions Related to First Homes, Education, or Adoption.--
(1) In general.--Paragraph (2) of section 72(t) (relating
to exceptions to 10-percent additional tax on early
distributions from qualified retirement plans) is amended by
adding at the end the following new subparagraph:
''(E) Certain distributions from individual
retirement plans, 401(k) plans, etc.--Distributions to
an individual from an individual retirement plan, or
from amounts attributable to employer contributions
made pursuant to elective deferrals described in
subparagraph (A) or (C) of section 402(g)(3) or section
501(c)(18)(D)(iii), to the extent such distributions do
not exceed the sum of--
''(i) qualified first-time homebuyer
distributions (as defined in paragraph (7))
made during the taxable year,
''(ii) qualified education expenses (as
defined in paragraph (8)) of the taxpayer for
the taxable year, and
''(iii) qualified adoption expenses (as
defined in section 23(d), determined without
regard to section 23(d)(2)(B)) paid or incurred
by the taxpayer during the taxable year.''
(2) Definitions.--Section 72(t) is amended by adding at the
end the following new paragraphs:
''(7) Qualified first-time homebuyer distributions.--For
purposes of paragraph (2)(E)(i)--
''(A) In general.--The term 'qualified first-time
homebuyer distribution' means any payment or
distribution received by an individual to the extent
such payment or distribution is used by the individual
before the close of the 60th day after the day on which
such payment or distribution is received to pay
qualified acquisition costs with respect to a principal
residence of a first-time homebuyer who is such
individual, the spouse of such individual, or any
child, grandchild, or ancestor of such individual or
the individual's spouse.
''(B) Qualified acquisition costs.--For purposes of
this paragraph, the term 'qualified acquisition costs'
means the costs of acquiring, constructing, or
reconstructing a residence. Such term includes any
usual or reasonable settlement, financing, or other
closing costs.
''(C) First-time homebuyer; other definitions.--For
purposes of this paragraph--
''(i) First-time homebuyer.--The term
'first-time homebuyer' means any individual
if--
''(I) such individual (and if
married, such individual's spouse) had
no present ownership interest in a
principal residence during the 2-year
period ending on the date of
acquisition of the principal residence
to which this paragraph applies, and
''(II) subsection (h) or (k) of
section 1034 did not suspend the
running of any period of time specified
in section 1034 with respect to such
individual on the day before the date
the distribution is applied pursuant to
subparagraph (A).
''(ii) Principal residence.--The term
'principal residence' has the same meaning as
when used in section 1034.
''(iii) Date of acquisition.--The term
'date of acquisition' means the date--
''(I) on which a binding contract
to acquire the principal residence to
which subparagraph (A) applies is
entered into, or
''(II) on which construction or
reconstruction of such a principal
residence is commenced.
''(D) Special rule where delay in acquisition.--If
any distribution from any individual retirement plan
fails to meet the requirements of subparagraph (A)
solely by reason of a delay or cancellation of the
purchase or construction of the residence, the amount
of the distribution may be contributed to an individual
retirement plan as provided in section 408(d)(3)(A)(i)
(determined by substituting '120 days' for '60 days' in
such section), except that--
''(i) section 408(d)(3)(B) shall not be
applied to such contribution, and
''(ii) such amount shall not be taken into
account in determining whether section
408(d)(3)(A)(i) applies to any other amount.
''(8) Qualified education expenses.--For purposes of
paragraph (2)(E)(ii)--
''(A) In general.--The term 'qualified higher
education expenses' means tuition, fees, books,
supplies, and equipment required for the education of--
''(i) the taxpayer,
''(ii) the taxpayer's spouse, or
''(iii) any child (as defined in section
151(c)(3)), grandchild, or ancestor of the
taxpayer or the taxpayer's spouse,
whether or not such education takes place at an
eligible educational institution (as defined in section
135(c)(3)).
''(B) Coordination with savings bond provisions.--
The amount of qualified education expenses for any
taxable year shall be reduced by any amount excludable
from gross income under section 135.''
(3) Conforming amendment.--Subparagraph (B) of section
72(t)(2) is amended by striking ''or (D)'' and inserting '',
(D), or (E)''.
(b) Penalty-Free Distributions for Certain Unemployed Individuals
Not Limited to Health Insurance Costs and Allowed From 401(k) Plans,
Etc.--Subparagraph (D) of section 72(t)(2) is amended--
(1) in clause (i), by inserting '', or from amounts
attributable to employer contributions made pursuant to
elective deferrals described in subparagraph (A) or (C) of
section 402(g)(3) or section 501(c)(18)(D)(iii),'' after
''individual retirement plan'',
(2) in clause (i), by inserting ''and'' at the end of
subclause (I), by striking '', and'' at the end of subclause
(II) and inserting a period, and by striking subclause (III),
and
(3) by striking ''for health insurance premiums'' in the
heading.
(c) Unlimited Penalty-Free Distributions for Medical Care and
Expanded Definition of Dependents for Purposes of Such Distributions.--
Subparagraph (B) of section 72(t)(2) is amended by striking ''medical
care'' and all that follows and inserting ''medical care, determined--
''(i) without regard to whether the
employee itemizes deductions for such taxable
year, and
''(ii) in the case of a distribution from
an individual retirement plan, or from amounts
attributable to employer contributions made
pursuant to elective deferrals described in
subparagraph (A) or (C) of section 402(g)(3) or
section 501(c)(18)(D)(iii)--
''(I) without regard to whether or
not such expenses exceed 7.5 percent of
adjusted gross income, and
''(II) by treating an individual's
dependents as including all children
and grandchildren of the individual (or
of such individual's spouse), and all
ancestors of the individual (or of such
individual's spouse).''
(d) Effective Date.--The amendments made by this section shall
apply to payments and distributions in taxable years beginning after
December 31, 1996.

SOLUTION: Amends the Internal Revenue Code to increase the: (1) maximum deduction for individual retirement account contributions; and (2) income amount at which phase-out of that deduction begins.
Exempts from the early distribution penalty: (1) distributions from certain types of retirement plans for first-time home buyer, education, or adoption expenses; and (2) for unemployed individuals (currently, for unemployed individuals for health insurance premiums). Modifies requirements regarding penalties for medical care early distributions.

PROBLEM: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Holocaust Victim Insurance Relief
Act of 1998''.

SEC. 2. FINDINGS.

Congress makes the following findings:
(1) During World War II, 6,000,000 victims of the Holocaust
lost their lives and property.
(2) In addition to the many atrocities that befell the
victims of the Nazi regime, many of the insurance claims that
rightfully should have been paid to the victims and their
families were not.
(3) In many instances, insurance company records are the
only proof of the existence of these insurance policies
belonging to Holocaust victims.
(4) Many Holocaust survivors and their descendants have
been fighting for 50 years to persuade insurance companies to
settle unpaid claims.
(5) Holocaust survivors and families of victims have asked
that insurance companies disclose any information they possess
that could show proof of insurance policies held by Holocaust
victims and survivors.
(6) Insurance companies doing business in the United States
have a responsibility to ensure that any involvement they or
their related companies may have had with insurance policies of
Holocaust victims are disclosed to the Federal Government and
to ensure the rapid resolution of these questions, eliminating
the further victimization of these policyholders and their
families.
(7) The international Jewish community is negotiating with
responsible insurance companies to establish an international
commission to resolve the issue of outstanding insurance
claims.

SEC. 3. ESTABLISHMENT OF HOLOCAUST INSURANCE REGISTRY.

The Secretary of the Treasury, Secretary of State, and Secretary of
Commerce shall jointly establish and maintain a central registry
containing records and information relating to insurance policies of
victims, living and deceased, of the Holocaust. The registry shall be
known as the Holocaust Insurance Registry and shall be accessible to
the public.

SEC. 4. FULL DISCLOSURE BY INSURANCE FIRMS.

Any insurer currently doing business in the United States that sold
life, property, liability, health, annuity, dowry, educational, or
casualty insurance policies, directly or through a related company, to
persons in Europe, which were in effect between 1920 and 1945, whether
the sale occurred before or after the insurer and the related company
became related, shall, within 180 days following the date of the
enactment of this Act, file or cause to be filed the following
information with the Departments of the Treasury, State, or Commerce to
be entered into the Holocaust Insurance Registry:
(1) The number of such insurance policies.
(2) The holder, beneficiary, and current status of such
policies.
(3) A comparison of the names of holders and beneficiaries
of such policies and the names of the victims of the Holocaust.
The names of victims of the Holocaust shall be provided by the
Department of State and may additionally be obtained from the Yad
Vashem repository in Israel.

SEC. 5. CERTIFICATION BY INSURANCE COMPANIES.

Each insurer subject to section 4 shall certify under penalty of
perjury to any of the following:
(1) The proceeds of the policies described in section 4
have been paid to the designated beneficiaries or their heirs
where that person or persons, after diligent search, could be
located and identified.
(2) The proceeds of the policies where the beneficiaries or
heirs could not, after diligent search, be located or
identified, have been distributed to Holocaust survivors or to
qualified charitable nonprofit organizations for the purpose of
assisting Holocaust survivors.
(3) A court of law has certified in a legal proceeding
resolving the rights of unpaid policyholders, their heirs, and
beneficiaries, a plan for the distribution of the proceeds.
(4) The proceeds have not been distributed and the amount
of those proceeds.
An insurer currently doing business in the United States that did not
sell any insurance policies in Europe prior to 1945, shall not be
subject to this section if a related company, whether or not authorized
and currently doing business in the United States, has made a filing
under this section.

SEC. 6. PENALTIES FOR FAILURE TO DISCLOSE INFORMATION.

(a) In General.--Any insurer that knowingly files information
required by this Act that is false shall be liable for a civil penalty
not to exceed $5,000 for each violation, which penalty is hereby
appropriated to the Departments of Treasury, State, and Commerce to be
used to aid in the resolution of Holocaust insurance claims.
(b) Suspension.--Any insurance company that fails to comply with
the requirements of this Act by the 210th day after the date of the
enactment of this Act, shall be suspended from practicing in the
insurance business until the time that the insurer complies with this
Act.
(c) Regulation.--The Secretary of the Treasury, Secretary of State,
and Secretary of Commerce shall jointly adopt regulations to implement
this Act.

SEC. 7. SENSE OF CONGRESS.

It is the sense of Congress that outstanding claims under insurance
policies held by Holocaust victims and survivors be resolved at the
earliest possible time.

SEC. 8. DEFINITIONS.

For purposes of this Act:
(1) The term ''Holocaust victim'' means any person who was
persecuted during the period of 1929 to 1945, inclusive, by
Nazi Germany, its allies, or sympathizers.
(2) The term ''related company'' means any parent,
subsidiary, reinsurer, successor in interest, managing general
agent, or affiliate company of the insurer.
(3) The term ''proceeds'' means the face value or other
payout value of insurance policies and annuities plus
reasonable interest to date of payment without diminution for
wartime or immediate postwar currency devaluation.

SOLUTION: Holocaust Victim Insurance Relief Act of 1998 - Directs the Secretary of the Treasury, the Secretary of State, and the Secretary of Commerce jointly to establish a central public registry containing records and information relating to insurance policies of living and deceased victims of the Holocaust, to be known as the Holocaust Insurance Registry.
Requires any insurer currently doing business in the United States that sold life, property, liability, health, annuity, dowry, educational, or casualty insurance policies, directly or through a related company, to persons in Europe, which were in effect between 1920 and 1945, to file with the Departments of the Treasury, State, or Commerce for entry into the Registry: (1) the number of such insurance policies; (2) the holder, beneficiary, and current status of such policies; and (3) a comparison of the names of holders and beneficiaries of such policies and the names of Holocaust victims.
Requires each such insurer to certify under penalty of perjury to any of the following: (1) the proceeds of the policies have been paid to the designated beneficiaries or their heirs where that person or persons could be located and identified; (2) the proceeds of the policies, where the beneficiaries or heirs could not be located or identified, have been distributed to Holocaust survivors or to qualified charitable nonprofit organizations for the purpose of assisting Holocaust survivors; (3) a court of law has certified in a legal proceeding resolving the rights of unpaid policyholders, their heirs, and beneficiaries, a plan for the distribution of the proceeds; or (4) the proceeds have not been distributed and the amounts of those proceeds. Exempts from such filing requirement any insurer currently doing business in the United States that did not sell any insurance policies in Europe before 1945, if a related company, whether or not authorized and currently doing business in the United States, has made such a filing.
Makes any insurer that knowingly files false information liable for a civil penalty not to exceed $5,000 for each violation, which penalty is appropriated to the Departments of the Treasury, State, and Commerce to be used to aid in the resolution of Holocaust insurance claims. Declares that any insurance company that fails to comply with the requirements of this Act shall be suspended from practicing in the insurance business until the time that the insurer complies.
Expresses the sense of the Congress that outstanding claims under insurance policies held by Holocaust victims and survivors be resolved at the earliest possible time.

PROBLEM: SECTION 1. CREDIT FOR INTEREST ON EDUCATION LOANS.

(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to nonrefundable
personal credits) is amended by inserting after section 22 the
following new section:

''SEC. 23. INTEREST ON EDUCATION LOANS.

''(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 15 percent of the interest paid
by the taxpayer during the taxable year on any qualified education
loan.
''(b) Maximum Credit.--The credit allowed by subsection (a) for the
taxable year shall not exceed $300.
''(c) Limitation on Taxpayers Eligible for Credit.--No credit shall
be allowed by this section to an individual for the taxable year if a
deduction under section 151 with respect to such individual is allowed
to another taxpayer for the taxable year beginning in the calendar year
in which such individual's taxable year begins.
''(d) Limit on Period Credit Allowed.--
''(1) Taxpayer and taxpayer's spouse.--Except as provided
in paragraph (2), a credit shall be allowed under this section
only with respect to interest paid on any qualified education
loan during the first 48 months (whether or not consecutive) in
which interest payments are required. For purposes of this
paragraph, any loan and all refinancings of such loan shall be
treated as 1 loan.
''(2) Dependent.--If the qualified education loan was used
to pay education expenses of an individual other than the
taxpayer or the taxpayer's spouse, a credit shall be allowed
under this section for any taxable year with respect to such
loan only if--
''(A) a deduction under section 151 with respect to
such individual is allowed to the taxpayer for such
taxable year, and
''(B) such individual is at least a half-time
student with respect to such taxable year.
''(e) Definitions.--For purposes of this section--
''(1) Qualified education loan.--The term 'qualified
education loan' means any indebtedness incurred to pay
qualified higher education expenses--
''(A) which are incurred on behalf of the taxpayer,
the taxpayer's spouse, or a dependent of the taxpayer,
''(B) which are paid or incurred within a
reasonable period of time before or after the
indebtedness is incurred, and
''(C) which are attributable to education furnished
during a period during which the recipient was at least
a half-time student.
Such term includes indebtedness used to refinance indebtedness
which qualifies as a qualified education loan. The term
'qualified education loan' shall not include any indebtedness
owed to a person who is related (within the meaning of section
267(b) or 707(b)(1)) to the taxpayer.
''(2) Qualified higher education expenses.--The term
'qualified higher education expenses' means the cost of
attendance (as defined in section 472 of the Higher Education
Act of 1965, 20 U.S.C. 1087ll, as in effect on the day before
the date of the enactment of this Act) of the taxpayer, the
taxpayer's spouse, or a dependent of the taxpayer at an
eligible educational institution. For purposes of the preceding
sentence, the term 'eligible educational institution' has the
same meaning given such term by section 135(c)(3), except that
such term shall also include an institution conducting an
internship or residency program leading to a degree or
certificate awarded by an institution of higher education, a
hospital, or a health care facility which offers postgraduate
training.
''(3) Half-time student.--The term 'half-time student'
means any individual who would be a student as defined in
section 151(c)(4) if 'half-time' were substituted for 'full-
time' each place it appears in such section.
''(4) Dependent.--The term 'dependent' has the meaning
given such term by section 152.
''(f) Special Rules.--
''(1) Denial of double benefit.--No credit shall be allowed
under this section for any amount for which a deduction is
allowable under any other provision of this chapter.
''(2) Marital status.--Marital status shall be determined
in accordance with section 7703.''
(b) Optional Deduction for Interest on Education Loans.--Paragraph
(2) of section 163(h) of the Internal Revenue Code of 1986 (defining
personal interest) is amended by striking ''and'' at the end of
subparagraph (D), by redesignating subparagraph (E) as subparagraph
(F), and by inserting after subparagraph (D) the following new
subparagraph:
''(E) any interest paid on a qualified education
loan (as defined in section 23(e)) during the period
described in section 23(d), unless a credit or
deduction is taken with respect to such interest under
any other provisions of this chapter, and''.
(c) Clerical Amendment.--The table of sections for such subpart A
is amended by inserting after the item relating to section 22 the
following new item:

''Sec. 23. Interest on education loans.''
(d) Effective Date.--The amendments made by this section shall
apply to any qualified education loan (as defined in section 23(e) of
the Internal Revenue Code of 1986, as added by this section) incurred
on, before, or after July 1, 1993, but only with respect to any loan
interest payment due after June 30, 1993, and before the termination of
the period described in section 23(d)(1) of such Code.

SOLUTION:
Amends the Internal Revenue Code to allow a tax credit for interest paid or incurred on any qualified education loan during the first 48 months (whether or not consecutive) for which interest payments are required to be made. Limits such credit to $300.
Allows such tax credit to parents only if the dependent is a student and a personal exemption is claimed for such dependent student.
Excludes interest paid on education loans from the definition of "personal interest" (thus, allowing a deduction to be taken) unless a credit or deduction with respect to such interest is taken.