H.R. 4849 - Upward Mobility Enhancement Act

116TH CONGRESS
1ST SESSION

H.R. 4849

To amend the Internal Revenue Code of 1986 to increase
the exclusion for educational assistance programs.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 23, 2019

Mr. SMITH of Missouri (for himself and Mr. DANNY K. DAVIS
of Illinois) introduced the following bill; which was referred
to the Committee on Ways and Means

A BILL

To amend the Internal Revenue Code of 1986 to increase the exclusion for educational assistance programs.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the "Upward Mobility Enhancement Act".

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

(a) IN GENERAL. — Paragraph (2) of section 127(a) of the Internal Revenue Code of 1986 is amended to read as follows:

"(2) MAXIMUM EXCLUSION. —

"(A) IN GENERAL. — This section shall apply only to the first $11,500 of educational assistance furnished to an individual during a calendar year, in the case of assistance for education below the graduate level.

"(B) INFLATION ADJUSTMENT. — In the case of any calendar year after 2019, the dollar amount in subparagraph (A) shall be increased by an amount equal to —

"(i) such dollar amount, multiplied by

"(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins by substituting 'calendar year 2017' for 'calendar year 2016' in subparagraph (A)(ii) thereof.

If any increase determined under this subparagraph is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50.".

(b) EFFECTIVE DATE. — The amendment made by this section shall apply to taxable years beginning after December 31, 2018.