Text: S.744 — 111th Congress (2009-2010)All Information (Except Text)

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Introduced in Senate (03/31/2009)


111th CONGRESS
1st Session
S. 744


To amend the Internal Revenue Code of 1986 to exclude from an employee's gross income any employer-provided supplemental instructional services assistance, and for other purposes.


IN THE SENATE OF THE UNITED STATES

March 31, 2009

Ms. Snowe (for herself and Mr. Nelson of Florida) introduced the following bill; which was read twice and referred to the Committee on Finance


A BILL

To amend the Internal Revenue Code of 1986 to exclude from an employee's gross income any employer-provided supplemental instructional services assistance, 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 “Affordable Tutoring of Our Children Act”.

SEC. 2. Exclusion of employer-provided supplemental instructional services assistance.

(a) In general.—Section 129 of the Internal Revenue Code of 1986 (relating to dependent care assistance programs) is amended—

(1) by inserting “and supplemental instructional services assistance” after “dependent care assistance” each place it appears (except in subsections (d)(4) and (e)(1) thereof), and

(2) by inserting “and supplemental instructional services” after “dependent care services” both places it appears in subsection (a)(2).

(b) Supplemental instructional services assistance.—Section 129(e) of the Internal Revenue Code of 1986 (relating to definitions and services) is amended by redesignating paragraphs (2) through (9) as paragraphs (3) through (10), respectively, and by inserting after paragraph (1) the following new paragraph:

“(2) SUPPLEMENTAL INSTRUCTIONAL SERVICES ASSISTANCE.—

“(A) IN GENERAL.—The term ‘supplemental instructional services assistance’ means the payment of, or provision of, supplemental instructional services to an employee's dependent (as defined in subsection (a)(1) of section 152, determined without regard to subsection (c)(1)(C) thereof) who—

“(i) has attained the age of 5 but not the age of 19 as of the close of the calendar year in which the taxable year of the employee begins, and

“(ii) has not obtained a high school diploma or been awarded a general education degree.

“(B) SUPPLEMENTAL INSTRUCTIONAL SERVICES.—The term ‘supplemental instructional services’ means instructional or other academic enrichment services which are—

“(i) in addition to instruction provided during the school day,

“(ii) specifically designed to increase the academic achievement of such dependent,

“(iii) in the core academic studies of English, reading or language arts, mathematics, science, foreign languages, civics and government, economics, arts, social studies, and geography, and

“(iv) provided by a State certified instructor or by a State recognized or privately accredited organization.”.

(c) No exclusion for supplemental instructional services assistance provided to highly compensated employees.—Section 129(a)(2)(A) of the Internal Revenue Code of 1986 (relating to limitation of exclusion) is amended by inserting “, except that no amount may be excluded under paragraph (1) for supplemental instructional services paid or incurred by an employee who is a highly compensated employee (within the meaning of section 414(q))” after “individual)”.

(d) Conforming amendments.—

(1) Section 21(b)(2)(A) of the Internal Revenue Code of 1986 is amended by adding at the end the following new sentence: “Such term shall not include any amount paid for supplemental instructional services (as defined in section 129(e)(2)(B)).”.

(2) The second sentence of section 21(c) of such Code is amended by inserting “of dependent care assistance” after “aggregate amount”.

(3) Section 6051(a)(9) of such Code is amended by inserting “and supplemental instructional services assistance” after “dependent care assistance” both places it appears.

(e) Clerical amendments.—

(1) The heading for section 129 of the Internal Revenue Code of 1986 is amended by inserting “and supplemental instructional services assistance” after “assistance”.

(2) The item relating to section 129 in the table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting “and supplemental instructional services assistance” after “assistance”.

(f) Effective date.—The amendments made by this section shall apply to taxable years beginning after December 31, 2009.