In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

[EX Q]: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Intelligence Authorization Act for
Fiscal Year 2015''.

TITLE I--INTELLIGENCE ACTIVITIES

SEC. 101. AUTHORIZATION OF APPROPRIATIONS.

Funds are hereby authorized to be appropriated for fiscal year 2015
for the conduct of the intelligence and intelligence-related activities
of the following elements of the United States Government:
(1) The Office of the Director of National Intelligence.
(2) The Central Intelligence Agency.
(3) The Department of Defense.
(4) The Defense Intelligence Agency.
(5) The National Security Agency.
(6) The Department of the Army, the Department of the Navy,
and the Department of the Air Force.
(7) The Coast Guard.
(8) The Department of State.
(9) The Department of the Treasury.
(10) The Department of Energy.
(11) The Department of Justice.
(12) The Federal Bureau of Investigation.
(13) The Drug Enforcement Administration.
(14) The National Reconnaissance Office.
(15) The National Geospatial-Intelligence Agency.
(16) The Department of Homeland Security.

SEC. 102. CLASSIFIED SCHEDULE OF AUTHORIZATIONS.

(a) Specifications of Amounts and Personnel Levels.--The amounts
authorized to be appropriated under section 101 and, subject to section
103, the authorized personnel ceilings as of September 30, 2015, for
the conduct of the intelligence activities of the elements listed in
paragraphs (1) through (16) of section 101, are those specified in the
classified Schedule of Authorizations prepared to accompany the bill
H.R. __ of the One Hundred Thirteenth Congress.
(b) Availability of Classified Schedule of Authorizations.--
(1) Availability.--The classified Schedule of
Authorizations referred to in subsection (a) shall be made
available to the Committee on Appropriations of the Senate, the
Committee on Appropriations of the House of Representatives,
and to the President.
(2) Distribution by the president.--Subject to paragraph
(3), the President shall provide for suitable distribution of
the classified Schedule of Authorizations, or of appropriate
portions of the Schedule, within the executive branch.
(3) Limits on disclosure.--The President shall not publicly
disclose the classified Schedule of Authorizations or any
portion of such Schedule except--
(A) as provided in section 601(a) of the
Implementing Recommendations of the 9/11 Commission Act
of 2007 (50 U.S.C. 3306(a));
(B) to the extent necessary to implement the
budget; or
(C) as otherwise required by law.

SEC. 103. PERSONNEL CEILING ADJUSTMENTS.

(a) Authority for Increases.--With the approval of the Director of
the Office of Management and Budget, the Director of National
Intelligence may authorize employment of civilian personnel in excess
of the number of positions authorized for fiscal year 2015 by the
classified Schedule of Authorizations referred to in section 102(a) if
the Director of National Intelligence determines that such action is
necessary to the performance of important intelligence functions,
except that the number of personnel employed in excess of the number
authorized under such section may not, for any element of the
intelligence community, exceed 3 percent of the number of civilian
personnel authorized under such Schedule for such element.
(b) Treatment of Certain Personnel.--The Director of National
Intelligence shall establish guidelines that govern, for each element
of the intelligence community, the treatment under the personnel levels
authorized under section 102(a), including any exemption from such
personnel levels, of employment or assignment in--
(1) a student program, trainee program, or similar program;
(2) a reserve corps or as a reemployed annuitant; or
(3) details, joint duty, or long-term, full-time training.
(c) Notice to Congressional Intelligence Committees.--The Director
of National Intelligence shall notify the congressional intelligence
committees in writing at least 15 days prior to each exercise of an
authority described in subsection (a).

SEC. 104. INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT.

(a) Authorization of Appropriations.--There is authorized to be
appropriated for the Intelligence Community Management Account of the
Director of National Intelligence for fiscal year 2015 the sum of
$__________. Within such amount, funds identified in the classified
Schedule of Authorizations referred to in section 102(a) for advanced
research and development shall remain available until September 30,
2016.
(b) Authorized Personnel Levels.--The elements within the
Intelligence Community Management Account of the Director of National
Intelligence are authorized __ positions as of September 30, 2015.
Personnel serving in such elements may be permanent employees of the
Office of the Director of National Intelligence or personnel detailed
from other elements of the United States Government.
(c) Classified Authorizations.--
(1) Authorization of appropriations.--In addition to
amounts authorized to be appropriated for the Intelligence
Community Management Account by subsection (a), there are
authorized to be appropriated for the Community Management
Account for fiscal year 2015 such additional amounts as are
specified in the classified Schedule of Authorizations referred
to in section 102(a). Such additional amounts for advanced
research and development shall remain available until September
30, 2016.
(2) Authorization of personnel.--In addition to the
personnel authorized by subsection (b) for elements of the
Intelligence Community Management Account as of September 30,
2015, there are authorized such additional personnel for the
Community Management Account as of that date as are specified
in the classified Schedule of Authorizations referred to in
section 102(a).

TITLE II--CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY SYSTEM

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

There is authorized to be appropriated for the Central Intelligence
Agency Retirement and Disability Fund for fiscal year 2015 the sum of
$__________.

TITLE III--GENERAL PROVISIONS

SEC. 301. INCREASE IN EMPLOYEE COMPENSATION AND BENEFITS AUTHORIZED BY
LAW.

Appropriations authorized by this Act for salary, pay, retirement,
and other benefits for Federal employees may be increased by such
additional or supplemental amounts as may be necessary for increases in
such compensation or benefits authorized by law.

SEC. 302. RESTRICTION ON CONDUCT OF INTELLIGENCE ACTIVITIES.

The authorization of appropriations by this Act shall not be deemed
to constitute authority for the conduct of any intelligence activity
which is not otherwise authorized by the Constitution or the laws of
the United States.
[EX A]: Intelligence Authorization Act for Fiscal Year 2015 - Authorizes FY2015 appropriations for the conduct of intelligence and intelligence-related activities of the: (1) Office of the Director of National Intelligence (DNI); (2) Central Intelligence Agency (CIA); (3) Department of Defense (DOD); (4) Defense Intelligence Agency (DIA); (5) National Security Agency (NSA); (6) Departments of the Army, Navy, and Air Force; (7) Coast Guard; (8) Departments of State, the Treasury, Energy (DOE), and Justice (DOJ); (9) Federal Bureau of Investigation (FBI); (10) Drug Enforcement Administration (DEA); (11) National Reconnaissance Office; (12) National Geospatial-Intelligence Agency; and (13) Department of Homeland Security (DHS). Specifies that the amounts authorized and the authorized personnel ceilings as of September 30, 2015, for such activities are those in the classified Schedule of Authorizations, which shall be made available to the congressional appropriations committees and the President. Allows the DNI, with the approval of the Office of Management and Budget (OMB), to authorize employment of civilian personnel in excess of the number authorized for FY2015 when necessary for the performance of important intelligence functions. Requires notification to the intelligence committees on the use of such authority. Requires the DNI to establish guidelines to govern the treatment under such authorized personnel levels of employment or assignment in: (1) a student or trainee program; (2) a reserve corps or as a reemployed annuitant; or (3) details, joint duty, or long term, full-time training. Authorizes appropriations for the Intelligence Community Management Account for FY2015, as well as for personnel positions for elements within such Account. Authorizes appropriations for FY2015 for the Central Intelligence Agency Retirement and Disability Fund. Permits appropriations authorized by this Act for salary, pay, retirement, and other benefits for federal employees to be increased by such additional or supplemental amounts as necessary for increases in such compensation or benefits authorized by law. Prohibits the authorization of appropriations by this Act from being deemed to constitute authority to conduct any intelligence activity not otherwise authorized by the Constitution or laws of the United States.

[EX Q]: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Space Tourism Promotion Act of
2001''.

SEC. 2. FINDINGS.

The Congress finds that--
(1) humans have long had a yearning to travel in space and
experience conditions beyond Earth's atmosphere;
(2) forty years of human space flight experience have
demonstrated the feasibility of safe travel to and from space
as well as the ability of humans to live and work in space;
(3) the Nation's human space flight program has developed
technologies and operational procedures that the private sector
could make use of to enable American citizens to experience
space travel;
(4) space tourism has the potential to become a significant
industry and a powerful stimulus for advances in space
transportation;
(5) the Federal Government could play an important role in
stimulating the development of space tourism by means of
guaranteed loans, tax credits, expeditious establishment of a
straightforward and predictable regulatory structure, and
research and development in technologies that may enable the
private sector to develop operational passenger-carrying space
transportation systems and on-orbit habitations;
(6) as the agency of the Federal Government primarily
responsible for the development of America's commercial sector,
the Department of Commerce, and in particular its Office of
Space Commercialization, should have the lead role in
encouraging the growth of space tourism;
(7) as the agency of the Federal Government currently
responsible for regulating America's commercial space
transportation industry, the Federal Aviation Administration,
and in particular its Office of Commercial Space
Transportation, should have the lead role in establishing the
regulatory structure necessary to ensure the safety of United
States space tourism;
(8) as the agency of the Federal Government responsible for
carrying out the major share of the Nation's civil space
activities, the National Aeronautics and Space Administration
should continue its traditional role of conducting research and
development related to new space technologies and systems and
facilitating their transfer to the private sector;
(9) it is an appropriate role for the Federal Government to
undertake measures to encourage the development of space
tourism in the United States; and
(10) at the same time, it is an inappropriate role and a
misallocation of taxpayer-provided resources for the Federal
Government to compete with the private sector in the provision
of transportation vehicles or facilities for space tourism.

SEC. 3. DEFINITIONS.

In this Act--
(1) terms that are defined in the Federal Credit Reform Act
of 1990 have the meaning given those terms in that Act; and
(2) the term ''space tourism'' means travel to, from, or
within outer space, or to the surface of a body in space other
than Earth, or habitation in outer space, for the purpose of
recreation.

SEC. 4. LOAN GUARANTEES.

(a) Authority.--
(1) In general.--The Secretary of Commerce may guarantee up
to 85 percent of the value of loans for the purpose of
developing transportation systems, habitation facilities, or
other infrastructure required for space tourism.
(2) Limitation.--The maximum aggregate amount of loan
commitments that may be guaranteed under this section by the
Secretary of Commerce at any one time shall be $2,000,000,000.
(3) Administrative fee.--The Secretary of Commerce is
authorized to collect from any borrower, and to the extent
provided for in advance in appropriations Acts to use, an
amount not to exceed 0.5 percent of the amount borrowed, for
covering the administrative expenses and other annual costs to
the Department of Commerce of the loan guarantee.
(b) Terms and Conditions.--A loan guaranteed under this section
shall be on such terms and conditions as the Secretary of Commerce may
prescribe.
(c) Term of Loans.--Loans guaranteed under this section shall be
for a term of not to exceed 20 years, or 100 percent of the useful life
of the substantial portion of the physical assets to be financed by the
loans, whichever is shorter, as determined by the Secretary of
Commerce.
(d) Lien on Interests in Assets.--Upon providing a loan guarantee
to a borrower under this section, the Secretary of Commerce shall have
liens which shall be superior to all other liens on assets of the
borrower equal to 85 percent of the unpaid balance of the loan subject
to the guarantee.
(e) Protection.--No loan shall be guaranteed under this section
unless the Secretary of Commerce determines that the borrower is
responsible and that adequate provision is made for servicing the loan
on reasonable terms and for protecting the interests of the United
States.
(f) Validity.--A loan guarantee under this section shall be
conclusive evidence that such guarantee has been properly obtained, and
that the underlying loan qualifies for such guarantee. In an action for
fraud or material misrepresentation by the holder of a loan guaranteed
under this section, such guarantee shall be presumed to be valid,
legal, and enforceable.
(g) Forbearance.--The Secretary of Commerce may approve an
agreement, between the parties to a loan guaranteed under this section,
that provides for forbearance for the benefit of the borrower if the
forbearance will result in no cost to the Federal Government.
(h) Administration and Oversight Responsibility.--The Office of
Space Commercialization shall be responsible for the administration and
oversight of this section on behalf of the Department of Commerce.

SEC. 5. CAPITAL GAINS EXCLUSION.

(a) In General.--Part I of subchapter P of chapter 1 of the
Internal Revenue Code of 1986 (relating to items specifically excluded
from gross income) is amended by adding at the end the following new
section:

''SEC. 1203. EXCLUSION OF GAINS FOR QUALIFIED SPACE TOURISM
CORPORATIONS.

''(a) In General.--Gross income shall not include gain on the sale
or exchange of any stock of a qualified space tourism corporation held
for more than one year.
''(b) Qualified Space Tourism Corporation.--For purposes of
subsection (a), the term 'qualified space tourism corporation' means,
with respect to any taxable year, a domestic corporation which is a C
corporation if--
''(1) such corporation is organized exclusively for
providing to unrelated persons any service of space tourism (as
defined in section 3 of the Space Tourism Promotion Act of
2001), and
''(2) such corporation derives at least 75 percent of its
gross receipts from the active conduct of a trade or business
of providing a service described in paragraph (1).
''(c) Certain Purchases by Corporations of Its Own Stock.--For
purposes of this section, rules similar to the rules of section
1202(c)(3) shall apply.
''(d) Related Person.--Persons shall be treated as related to each
other if such persons would be treated as a single employer under the
regulations prescribed under section 52(b). In the case of a
corporation which is a member of an affiliated group of corporations
filing a consolidated return, such corporation shall be treated as
providing services related to space tourism to an unrelated person if
such services are provided to such a person by another member of such
group.
''(e) Termination.--This section shall not apply to sales or
exchanges after December 31, 2011.''.
(b) Clerical Amendment.--The table of sections for part I of
subchapter P of such Code is amended by adding at the end the following
new item:

''Sec. 1203. Exclusion of gains for
qualified space tourism
corporations.''
(c) Effective Date.--The amendments made by this section shall
apply to sales and exchanges in taxable years beginning after December
31, 2001.

SEC. 6. ESTABLISHMENT OF REGULATORY STANDARDS.

(a) In General.--Not later than 2 years after the date of the
enactment of this Act, the Secretary of Transportation shall issue
regulations to govern--
(1) activities necessary to ensure the safe operation of
passenger-carrying launch and reentry vehicles and spacecraft
for space tourism, to the extent to which regulatory procedures
have not previously been established by law; and
(2) activities related to the provision of and safe
operation of habitable facilities in outer space for space
tourism purposes.
(b) Orbital Debris Avoidance.--Not later than 2 years after the
date of the enactment of this Act, the Secretary of Transportation
shall issue regulations to prevent, to the extent practicable, the
growth of orbital debris resulting from activities associated with
space tourism.
(c) Legal Regime.--Activities taking place on space tourism
habitation facilities and passenger-carrying launch and reentry
vehicles and spacecraft for space tourism licensed or otherwise
regulated by the Secretary of Transportation shall be governed by the
laws of the United States.

SEC. 7. USE OF FEDERAL FACILITIES.

(a) Prohibition Against Certain Uses of Federal Facilities.--
(1) In general.--Launch, reentry, and space travel vehicles
owned by the Federal Government shall not be used for the
transport of any individuals other than those engaged in or
supporting the conduct of official business of the United
States or the conduct of scientific or engineering research and
development, except in emergency situations.
(2) International space station.--The United States portion
of the International Space Station shall not be visited or
occupied by any individuals other than those engaged in or
supporting the conduct of official business of the United
States or the conduct of scientific or engineering research and
development, and those authorized by relevant international
agreements, except in emergency situations.
(b) Use of Other Federal Facilities.--The use of other Federal
facilities and infrastructure, such as launch ranges and data relay
satellites, shall be made available to commercial entities engaged in
space tourism on a cost-reimbursable basis to the extent that excess
capacity exists at the time the commercial entity requests the use of
such facilities and infrastructure.
[EX A]: Space Tourism Promotion Act of 2001 - Authorizes the Secretary of Commerce to guarantee up to 85 percent of the value of loans for developing transportation systems, habitation facilities, or other infrastructure required for space tourism.Amends the Internal Revenue Code of 1986 to exclude from gross income gain on the sale or exchange of any stock of a qualified space tourism corporation held for more than a year.Requires the Secretary of Transportation to issue regulations to: (1) govern activities necessary to ensure the safe operation of passenger-carrying launch and reentry vehicles and spacecraft for space tourism and activities related to the provision and safe operation of habitable facilities in outer space for space tourism; and (2) prevent the growth of orbital debris resulting from activities associated with space tourism.Prohibits: (1) the use of launch, reentry, and space travel vehicles owned by the Government for the transport of any individuals other than those engaged in or supporting the conduct of official business or scientific or engineering research and development (R&D), except in emergencies; and (2) the U.S. portion of the International Space Station from being visited or occupied by any individuals other than those engaged in or supporting the conduct of such business or R&D and those authorized by relevant international agreements, except in emergencies.Requires the use of other Federal facilities and infrastructure, such as launch ranges and data relay satellites, to be made available to commercial entities engaged in space tourism on a cost-reimbursable basis to the extent that excess capacity exists.

[EX Q]: SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

(a) Short Title.--This Act may be cited as the ''Higher Education
Savings Credit Act of 1997''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this Act an amendment or repeal is expressed in
terms of an amendment to, or repeal of, a section or other provision,
the reference shall be considered to be made to a section or other
provision of the Internal Revenue Code of 1986.

SEC. 2. CREDIT FOR CONTRIBUTIONS TO EDUCATION INVESTMENT ACCOUNTS.

(a) In General.--Subpart A of part IV of subchapter A of chapter 1
(relating to nonrefundable personal credits) is amended by inserting
after section 23 the following new section:

''SEC. 24. CONTRIBUTIONS TO EDUCATION INVESTMENT ACCOUNTS.

''(a) Allowance of Credit.--
''(1) In general.--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 the applicable
percentage of the contributions made by the taxpayer for the
taxable year to an education investment account of an account
holder who is an individual with respect to whom the taxpayer
is allowed a deduction under section 151(c) for such taxable
year.
''(2) Applicable percentage.--For purposes of paragraph
(1), the applicable percentage is the percentage determined in
accordance with the following table with respect to the age of
the account holder as of the close of the taxable year:

''If the account The applicable
holder's age is: percentage is:

Not over 6................................. 50
Over 6 but not over 9...................... 40
Over 9 but not over 12..................... 30
Over 12 but not over 15.................... 20
Over 15 but not over 18.................... 10
''(b) Limitation on Amount of Contributions Taken Into Account in
Determining Credit.--The amount of contributions which may be taken
into account under subsection (a) with respect to each account holder
shall not exceed $500.
''(c) Definitions and Special Rules.--For purposes of this
section--
''(1) Education investment account.--The term 'education
investment account' means a trust created or organized in the
United States exclusively for the purpose of paying the
qualified higher education expenses of the account holder, but
only if the written governing instrument creating the trust
meets the following requirements:
''(A) No contribution will be accepted--
''(i) unless it is in cash,
''(ii) except in the case of rollover
contributions from another education investment
account, in excess of $1,500 for any calendar
year, and
''(iii) after the date on which the account
holder attains age 18.
''(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
that person will administer the trust will be
consistent with the requirements of this section.
''(C) No part of the trust assets will be invested
in life insurance contracts.
''(D) The assets of the trust shall not be
commingled with other property except in a common trust
fund or common investment fund.
''(E) Any balance in the education investment
account on the day after the date on which the account
holder attains age 30 (or, if earlier, the date on
which such holder dies) shall be distributed within 30
days of such date to the account holder (or in the case
of death, the beneficiary).
''(2) Qualified higher education expenses.--
''(A) In general.--The term 'qualified higher
education expenses' means the cost of attendance
(within the meaning of section 472 of the Higher
Education Act of 1965 (20 U.S.C. 1087ll), as in effect
on the date of the enactment of the Higher Education
Access and Affordability Act of 1997) of the account
holder at an eligible educational institution, except
that such expenses shall be reduced by--
''(i) the amount excluded from gross income
under section 135 by reason of such expenses,
and
''(ii) the amount of the reduction
described in section 135(d)(1) (other than
subparagraph (E)).
''(B) State tuition plans.--Such term shall include
amounts paid or incurred to purchase tuition credits or
certificates, or to make contributions to an account,
under a qualified State tuition program (as defined in
section 529(b)).
''(3) Eligible educational institution.--The term 'eligible
educational institution' has the meaning given such term by
section 135(c)(3).
''(4) Account holder.--The term 'account holder' means the
individual for whose benefit the education investment account
is established.
''(5) Time when contributions deemed made.--A taxpayer
shall be deemed to have made a contribution on the last day of
the preceding taxable year if the contribution is made on
account of such taxable year and is made not later than the
time prescribed by law for filing the return for such taxable
year (not including extensions thereof).
''(6) Account may not be established for benefit of more
than 1 individual.--An education investment account may not be
established for the benefit of more than 1 individual.
''(7) Special rule where more than 1 account.--If, at any
time during a calendar year, 2 or more education investment
accounts are maintained for the benefit of an individual, only
the account first established shall be treated as an education
investment account for purposes of this section. This paragraph
shall not apply to the extent more than 1 account exists solely
by reason of a rollover contribution.
''(d) Tax Treatment of Account.--
''(1) In general.--An education investment account shall be
exempt from taxation under this subtitle. Notwithstanding the
preceding sentence, the education investment account shall be
subject to the taxes imposed by section 511 (relating to
imposition of tax on unrelated business income of charitable
organizations).
''(2) Special rules.--Rules similar to the rules of
paragraphs (2) and (4) of section 408(e) shall apply to any
education investment account, and any amount treated as
distributed under such rules shall be treated as not used to
pay qualified higher education expenses.
''(e) Tax Treatment of Distributions.--
''(1) In general.--Except as otherwise provided in this
subsection, any amount paid or distributed out of an education
investment account shall be included in gross income of the
payee or distributee for the taxable year in the manner
prescribed by section 72. For purposes of the preceding
sentence, rules similar to the rules of section 408(d)(2) shall
apply.
''(2) Distribution used to pay educational expenses.--
Paragraph (1) shall not apply to any payment or distribution
out of an education investment account to the extent such
payment or distribution is used exclusively to pay the
qualified higher education expenses of the account holder.
''(3) Special rule for applying section 2503.--If any
payment or distribution from an education investment account is
used exclusively for the payment to an eligible educational
institution of the qualified higher education expenses of the
account holder, such payment shall be treated as a qualified
transfer for purposes of section 2503(e).
''(4) Additional tax and credit recapture for distributions
not used for educational expenses.--
''(A) In general.--
''(i) Additional tax.--The tax imposed by
this chapter for any taxable year on any
taxpayer who receives a payment or distribution
from an education investment account which is
includible in gross income under paragraph (1)
shall be increased by 10 percent of the amount
which is so includible.
''(ii) Credit recapture.--If any payment or
distribution out of an education investment
account is not used exclusively to pay the
qualified higher education expenses of the
account holder, the account holder's tax
imposed by this chapter for the taxable year in
which such payment or distribution is made
shall be increased by the lesser of the amount
of the payment or distribution or the excess
(if any) of--
''(I) the aggregate credit allowed
under this section for contributions to
such account, over
''(II) the aggregate increase in
tax under this clause for all prior
taxable years with respect to payments
and distributions out of such account.
''(B) Exception for disability, death, or
scholarship.--Subparagraph (A) shall not apply if the
payment or distribution is--
''(i) made on account of the death or
disability of the account holder, or
''(ii) made on account of a scholarship (or
allowance or payment described in section
135(d)(1) (B) or (C)) received by the account
holder to the extent the amount of the payment
or distribution does not exceed the amount of
the scholarship, allowance, or payment.
''(C) Excess contributions returned before due date
of return.--Subparagraph (A) shall not apply to the
distribution to a contributor of any contribution paid
during a taxable year to an education investment
account to the extent that such contribution, when
added to previous contributions to the account during
the taxable year, exceeds $1,500 if--
''(i) such distribution is received on or
before the day prescribed by law (including
extensions of time) for filing such
contributor's return for such taxable year, and
''(ii) such distribution is accompanied by
the amount of net income attributable to such
excess contribution.
Any net income described in clause (ii) shall be
included in the gross income of the contributor for the
taxable year in which such excess contribution was
made.
''(5) Rollover contributions.--Paragraph (1) shall not
apply to any amount paid or distributed from an education
investment account to the extent that the amount received is
paid into another education investment account for the benefit
of the account holder not later than the 60th day after the day
on which the holder receives the payment or distribution. The
preceding sentence shall not apply to any payment or
distribution if it applied to any prior payment or distribution
during the 12-month period ending on the date of the payment or
distribution.
''(6) Special rules for death and divorce.--Rules similar
to the rules of section 220(f) (7) and (8) shall apply.
''(f) Community Property Laws.--This section shall be applied
without regard to any community property laws.
''(g) Custodial Accounts.--For purposes of this section, a
custodial account shall be treated as a trust if the assets of such
account are held by a bank (as defined in section 408(n)) or another
person who demonstrates, to the satisfaction of the Secretary, that the
manner in which he will administer the account will be consistent with
the requirements of this section, and if the custodial account would,
except for the fact that it is not a trust, constitute an account
described in subsection (b)(1). For purposes of this title, in the case
of a custodial account treated as a trust by reason of the preceding
sentence, the custodian of such account shall be treated as the trustee
thereof.
''(h) Reports.--The trustee of an education investment account
shall make such reports regarding such account to the Secretary and to
the account holder 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 individuals at such time and in such
manner as may be required by those regulations.''
(b) Tax on Prohibited Transactions.--Section 4975 (relating to
prohibited transactions) is amended--
(1) by adding at the end of subsection (c) the following
new paragraph:
''(5) Special rule for education investment accounts.--An
individual for whose benefit an education investment account is
established and any contributor to such account 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 an education investment
account by reason of the application of section 24 to such
account.''; and
(2) in subsection (e)(1), by striking ''or'' at the end of
subparagraph (D), by redesignating subparagraph (E) as
subparagraph (F), and by inserting after subparagraph (D) the
following new subparagraph:
''(E) a education investment account described in
section 24(c), or''.
(c) Failure To Provide Reports on Education Investment Accounts.--
Section 6693 (relating to failure to provide reports on individual
retirement accounts or annuities) is amended--
(1) by striking ''individual retirement'' and inserting
''certain tax-favored'' in the heading of such section, and
(2) in subsection (a)(2), by striking ''and'' at the end of
subparagraph (A), by striking the period at the end of
subparagraph (B) and inserting '', and'', and by adding at the
end the following new subparagraph:
''(C) section 24(h) (relating to education
investment accounts).''
(d) Coordination With Savings Bond Exclusion.--Section 135(d)(1) is
amended by striking ''or'' at the end of subparagraph (C), by striking
the period at the end of subparagraph (D) and inserting '', or'' , and
by adding at the end the following new subparagraph:
''(E) a payment or distribution from an education
investment account (as defined in section 24(c)).''
(e) Clerical Amendments.--
(1) The table of sections for subpart A of part IV of
subchapter A of chapter 1 is amended by inserting after the
item relating to section 23 the following new item:

''Sec. 24. Contributions to education
investment accounts.''
(2) The item relating to section 6693 in the table of
sections for subchapter B of chapter 68 is amended by striking
''individual retirement'' and inserting ''certain tax-
favored''.
(f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 1997.
[EX A]:
Higher Education Savings Credit Act of 1997 - Amends the Internal Revenue Code to establish a credit for contributions made by a taxpayer to a qualifying higher education investment account for a dependent not over 18 years old. Determines such credit upon a maximum annual contribution of $500 per account holder and an age-based percentage. Excludes account distributions from gross income if used to pay the holder's qualified higher education expenses, and provides for an additional tax and credit recapture (with exceptions) if used otherwise.
Sets forth related reporting requirements.