Text: H.R.1518 — 109th Congress (2005-2006)All Information (Except Text)

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Introduced in House (04/06/2005)


109th CONGRESS
1st Session
H. R. 1518


To amend the Internal Revenue Code of 1986 to expand the exclusion for employer-provided educational assistance to include educational assistance provided to dependents of employees.


IN THE HOUSE OF REPRESENTATIVES

April 6, 2005

Mr. Keller (for himself, Mr. Foley, and Mr. English of Pennsylvania) 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 expand the exclusion for employer-provided educational assistance to include educational assistance provided to dependents of employees.

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 “Family Friendly Employers Act of 2005”.

SEC. 2. Exclusion for employer-provided educational assistance provided to dependents of employees.

(a) In general.—Paragraph (1) of section 127(c) of the Internal Revenue Code of 1986 (defining educational assistance) is amended—

(1) by inserting “or a dependent of the employee” after “education of the employee” in subparagraph (A), and

(2) by inserting “or dependent” after “employee” in subparagraph (B) and in the material following subparagraph (B).

(b) Separate limitation for dependents.—Subsection (a) of section 127 of such Code is amended by adding at the end the following new paragraph:

“(3) MAXIMUM EXCLUSION FOR ASSISTANCE FURNISHED TO DEPENDENTS.—If, but for this paragraph, this section would exclude from gross income more than $2,500 of educational assistance furnished to the dependents of an employee (in the aggregate) during a calendar year, this section shall apply only to the first $2,500 of such assistance so furnished.”.

(c) Conforming amendment.—Paragraph (2) of section 127(a) of such Code is amended—

(1) by striking “an individual” and inserting “the employee”, and

(2) in the heading thereof by striking “maximum exclusion” and inserting “maximum exclusion for assistance furnished to employee”.

(d) Effective date.—The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.