A bill to amend the Internal Revenue Code of 1954 to provide for the exclusion from gross income of certain employer educational assistance programs.

Amends the Internal Revenue Code to exclude from the gross income of an employee amounts paid or expenses incurred by the employer for educational assistance to the employee. Limits to 25 percent the amount of payments which may be made by such programs to shareholders or owners (or their spouses or dependents), each of whom owns more than five percent of the stock or of the capital or profits interest in the employer.