Savings Enhancement for Education in College Act - Amends the Internal Revenue Code to: (1) make permanent the allowance for payment of expenses for computer technology and equipment from qualified tuition programs; (2) allow a tax credit for contributions to such programs; and (3) allow limited direction of investment of contributions or earnings in a qualified tuition program.
[Congressional Bills 111th Congress]
[From the U.S. Government Printing Office]
[H.R. 1351 Introduced in House (IH)]
111th CONGRESS
1st Session
H. R. 1351
To amend the Internal Revenue Code of 1986 to treat computer technology
and equipment as eligible higher education expenses for 529 plans, to
allow certain individuals a credit against income tax for contributions
to 529 plans, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 5, 2009
Mr. Pomeroy (for himself, Mr. Tiberi, Mr. Meek of Florida, Mr. Kind,
and Ms. Jenkins) 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 treat computer technology
and equipment as eligible higher education expenses for 529 plans, to
allow certain individuals a credit against income tax for contributions
to 529 plans, and for other purposes.
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 ``Savings Enhancement for Education in
College Act''.
SEC. 2. COMPUTER TECHNOLOGY AND EQUIPMENT ALLOWED AS A QUALIFIED HIGHER
EDUCATION EXPENSE FOR SECTION 529 ACCOUNTS.
(a) In General.--Section 529(e)(3)(A) of the Internal Revenue Code
of 1986 is amended by striking ``and'' at the end of clause (i), by
striking the period at the end of clause (ii), and by adding at the end
the following:
``(iii) expenses paid or incurred for the
purchase of any computer technology or
equipment (as defined in section
170(e)(6)(F)(i)) or Internet access and related
services, if such technology, equipment, or
services are to be used primarily by the
designated beneficiary while enrolled at an
eligible educational institution.
Clause (iii) shall not include expenses for computer
software designed for sports, games, or hobbies unless
the software is predominantly educational in nature.''.
(b) Effective Date.--The amendments made by this section shall
apply to expenses paid or incurred after December 31, 2010.
SEC. 3. CREDIT FOR CONTRIBUTIONS TO 529 PLANS.
(a) In General.--Subsection (d) of section 25B of the Internal
Revenue Code of 1986 (relating to elective deferrals and IRA
contributions by certain individuals) is amended by redesignating
paragraph (2) as paragraph (3) and by inserting after paragraph (1) the
following new paragraph:
``(2) Contributions to qualified tuition programs.--
``(A) In general.--The term `qualified savings
contribution' includes the amount of any purchase or
contribution described in paragraph (1)(A) of section
529(b) to a qualified tuition program (as defined in
such section) if--
``(i) the taxpayer has the power to
authorize distributions and otherwise
administer the account, and
``(ii) the designated beneficiary of such
purchase or contribution is the taxpayer, the
taxpayer's spouse, or an individual with
respect to whom the taxpayer is allowed a
deduction under section 151.
``(B) Limitation based on compensation.--The amount
treated as a qualified savings contribution by reason
of subparagraph (A) for any taxable year shall not
exceed the sum of--
``(i) the compensation (as defined in
section 219(f)(1)) includible in the taxpayer's
gross income for the taxable year, and
``(ii) the amount excluded from the
taxpayer's gross income under section 112
(relating to combat pay) for such year.
``(C) Determination of adjusted gross income.--
Solely for purposes of determining the applicable
percentage under subsection (b) which applies with
respect to the amount treated as a qualified savings
contribution by reason of subparagraph (A), adjusted
gross income (determined without regard to this
subparagraph) shall be increased by the excess (if any)
of--
``(i) the social security benefits received
during the taxable year (within the meaning of
section 86), over
``(ii) the amount included in gross income
for such year under section 86.''.
(b) Conforming Amendments.--
(1) Section 25B of such Code is amended by striking
``qualified retirement savings'' each place it appears in the
text and inserting ``qualified savings''.
(2) The subsection heading for section 25B(d) of such Code
is amended by striking ``Retirement''.
(3) Subparagraph (A) of section 25B(d)(3) of such Code, as
redesignated by subsection (a), is amended--
(A) by striking ``paragraph (1)'' the first place
it appears and inserting ``paragraph (1) or (2)'', and
(B) by striking ``paragraph (1)'' the second place
it appears and inserting ``paragraph (1), or (2), as
the case may be,''.
(4) The heading for section 25B of such Code is amended by
striking ``and ira contributions'' and inserting ``, ira
contributions, and qualified tuition program contributions''.
(5) The table of sections for subpart A of part IV of
subchapter A of chapter 1 of such Code is amended by striking
the item relating to section 25B and inserting the following
new item:
``Sec. 25B. Elective deferrals, IRA contributions, and qualified
tuition program contributions by certain
individuals.''.
(c) Effective Date.--The amendments made by this section shall
apply to contributions made after December 31, 2009.
SEC. 4. INVESTMENT DIRECTION UNDER QUALIFIED TUITION PROGRAMS.
(a) In General.--Paragraph (4) of section 529(b) of the Internal
Revenue Code of 1986 (relating to investment direction) is amended by
striking the period at the end and inserting ``more frequently than 2
times per calendar year.''.
(b) Effective Date.--The amendments made by this section shall
apply to years beginning after December 31, 2008.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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