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114th Congress   }                                       {       Report
                        HOUSE OF REPRESENTATIVES
 1st Session     }                                       {       114-25

======================================================================



 
    AMENDING THE INTERNAL REVENUE CODE OF 1986 TO IMPROVE 529 PLANS

                                _______
                                

 February 20, 2015.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Ryan of Wisconsin, from the Committee on Ways and Means, submitted 
                             the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 529]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Ways and Means, to whom was referred the 
bill (H.R. 529) to amend the Internal Revenue Code of 1986 to 
improve 529 plans, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
  I. SUMMARY AND BACKGROUND...........................................3
          A. Purpose and Summary.................................     3
          B. Background and Need for Legislation.................     3
          C. Legislative History.................................     3
 II. EXPLANATION OF THE BILL..........................................4
          A. Section 529 Programs (secs. 2, 3 and 4 of the bill 
              and sec. 529 of the Code)..........................     4
III. VOTES OF THE COMMITTEE...........................................7
 IV. BUDGET EFFECTS OF THE BILL.......................................9
          A. Committee Estimate of Budgetary Effects.............     9
          B. Statement Regarding New Budget Authority and Tax 
              Expenditures Budget Authority......................     9
          C. Cost Estimate Prepared by the Congressional Budget 
              Office.............................................     9
  V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE......11
          A. Committee Oversight Findings and Recommendations....    11
          B. Statement of General Performance Goals and 
              Objectives.........................................    11
          C. Information Relating to Unfunded Mandates...........    11
          D. Applicability of House Rule XXI 5(b)................    11
          E. Tax Complexity Analysis.............................    11
          F. Congressional Earmarks, Limited Tax Benefits, and 
              Limited Tariff Benefits............................    12
          G. Duplication of Federal Programs.....................    12
          H. Disclosure of Directed Rule Makings.................    12
 VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED...........12
VII. ADDITIONAL VIEWS................................................20

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. FINDINGS AND PURPOSE.

  (a) Findings.--Congress finds the following:
          (1) When the Economic Growth and Tax Relief Reconciliation 
        Act of 2001 became law, the tax treatment of section 529 
        college savings plans was changed so that qualified 
        distributions were no longer taxed as income. The favorable tax 
        treatment of college savings plans was made permanent with the 
        passage of the Pension Protection Act of 2006.
          (2) Section 529 college savings plans empower middle-class 
        families to accumulate savings to offset the rising costs of 
        attending college.
          (3) The latest data from the College Savings Plan Network 
        shows that there are 11.83 million 529 accounts open throughout 
        all 50 states, which represent $244.5 billion in total assets. 
        The average 529 account size is $20,671.
          (4) States that sponsor 529 college savings plans have taken 
        steps to ensure these plans are a tool that all families can 
        use to save for college, including setting minimum 
        contributions as low as $25 per month to encourage 
        participation by families of all income levels.
          (5) The President's fiscal year 2016 Budget proposes raising 
        taxes by taxing certain future distributions made from 529 
        college savings plans.
          (6) The tax proposed by the President would discourage the 
        use of 529 college savings plans, requiring families and 
        students to take on more debt.
          (7) Purchase of a computer represents a significant higher 
        education expense and therefore should be eligible for 
        qualified distributions under 529 college savings plans.
  (b) Purpose.--It is the purpose of this Act to--
          (1) enact policies that strengthen 529 college savings plans, 
        and
          (2) make 529 plans more modern, consumer-friendly, and 
        responsive to the realities faced by students today.

SEC. 2. COMPUTER TECHNOLOGY AND EQUIPMENT PERMANENTLY ALLOWED AS A 
                    QUALIFIED HIGHER EDUCATION EXPENSE FOR SECTION 529 
                    ACCOUNTS.

  (a) In General.--Section 529(e)(3)(A)(iii) of the Internal Revenue 
Code of 1986 is amended to read as follows:
                          ``(iii) expenses for the purchase of computer 
                        or peripheral equipment (as defined in section 
                        168(i)(2)(B)), computer software (as defined in 
                        section 197(e)(3)(B)), or Internet access and 
                        related services, if such equipment, software, 
                        or services are to be used primarily by the 
                        beneficiary during any of the years the 
                        beneficiary is enrolled at an eligible 
                        educational institution.''.
  (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2014.

SEC. 3. ELIMINATION OF DISTRIBUTION AGGREGATION REQUIREMENTS.

  (a) In General.--Section 529(c)(3) of the Internal Revenue Code of 
1986 is amended by striking subparagraph (D).
  (b) Effective Date.--The amendment made by this section shall apply 
to distributions after December 31, 2014.

SEC. 4. RECONTRIBUTION OF REFUNDED AMOUNTS.

  (a) In General.--Section 529(c)(3) of the Internal Revenue Code of 
1986, as amended by section 3, is amended by adding at the end the 
following new subparagraph:
                  ``(D) Special rule for contributions of refunded 
                amounts.--In the case of a beneficiary who receives a 
                refund of any qualified higher education expenses from 
                an eligible educational institution, subparagraph (A) 
                shall not apply to that portion of any distribution for 
                the taxable year which is recontributed to a qualified 
                tuition program of which such individual is a 
                beneficiary, but only to the extent such recontribution 
                is made not later than 60 days after the date of such 
                refund and does not exceed the refunded amount.''.
  (b) Effective Date.--
          (1) In general.--The amendment made by this section shall 
        apply with respect to refunds of qualified higher education 
        expenses after December 31, 2014.
          (2) Transition rule.--In the case of a refund of qualified 
        higher education expenses received after December 31, 2014, and 
        before the date of the enactment of this Act, section 
        529(c)(3)(D) of the Internal Revenue Code of 1986 (as added by 
        this section) shall be applied by substituting ``not later than 
        60 days after the date of the enactment of this subparagraph'' 
        for ``not later than 60 days after the date of such refund''.

                       I. SUMMARY AND BACKGROUND 


                         A. Purpose and Summary

    H.R. 529, reported by the Committee on Ways and Means, 
modernizes and improves the treatment of college savings 
programs under section 529 of the Internal Revenue Code of 1986 
(``529 plans''). It treats computer equipment and technology 
expenses as qualified higher education expenses, and removes 
the aggregation requirement for distributions. The bill also 
protects from tax and penalties amounts taken as distributions, 
paid as tuition, and then refunded, provided such amounts are 
re-contributed to the 529 plan within 60 days.

                 B. Background and Need for Legislation

    The Committee believes that 529 plans are an important 
vehicle for encouraging middle-income families to save for 
higher education, and that these plans should be modernized, 
improved, and simplified for such families.

                         C. Legislative History


                               BACKGROUND

    H.R. 529 was introduced on January 26, 2015, and was 
referred to the Committee on Ways and Means.

                            COMMITTEE ACTION

    The Committee on Ways and Means marked up H.R. 529, a bill 
to amend the Internal Revenue Code of 1986 to improve 529 plans 
on February 12, 2015, and ordered the bill, as amended, 
favorably reported (with a quorum being present).

                           COMMITTEE HEARINGS

    The tax treatment of 529 plans was discussed at a full 
Committee hearing on the President's Fiscal Year 2016 Budget 
Proposal with Secretary of the Treasury Jacob J. Lew (February 
3, 2015).

                      II. EXPLANATION OF THE BILL


 A. Section 529 Programs (Secs. 2, 3 and 4 of the Bill and Sec. 529 of 
                               the Code)


                              PRESENT LAW

                 SECTION 529 QUALIFIED TUITION PROGRAMS

In general

    A qualified tuition program is a program established and 
maintained by a State or agency or instrumentality thereof, or 
by one or more eligible educational institutions, which 
satisfies certain requirements and under which a person may 
purchase tuition credits or certificates on behalf of a 
designated beneficiary that entitle the beneficiary to the 
waiver or payment of qualified higher education expenses of the 
beneficiary (a ``prepaid tuition program''). Section 529\1\ 
provides specified income tax and transfer tax rules for the 
treatment of accounts and contracts established under qualified 
tuition programs.\2\ In the case of a program established and 
maintained by a State or agency or instrumentality thereof, a 
qualified tuition program also includes a program under which a 
person may make contributions to an account that is established 
for the purpose of satisfying the qualified higher education 
expenses of the designated beneficiary of the account, provided 
it satisfies certain specified requirements (a ``savings 
account program''). Under both types of qualified tuition 
programs, a contributor establishes an account for the benefit 
of a particular designated beneficiary to provide for that 
beneficiary's higher education expenses.
---------------------------------------------------------------------------
    \1\Except where otherwise specified, all section references are to 
the Internal Revenue Code of 1986, as amended (the ``Code'').
    \2\For purposes of this description, the term ``account'' is used 
interchangeably to refer to a prepaid tuition benefit contract or a 
tuition savings account established pursuant to a qualified tuition 
program.
---------------------------------------------------------------------------
    In general, prepaid tuition contracts and tuition savings 
accounts established under a qualified tuition program involve 
prepayments or contributions made by one or more individuals 
for the benefit of a designated beneficiary. Decisions with 
respect to the contract or account are typically made by an 
individual who is not the designated beneficiary. Qualified 
tuition accounts or contracts generally require the designation 
of a person (generally referred to as an ``account owner'')\3\ 
whom the program administrator (oftentimes a third party 
administrator retained by the State or by the educational 
institution that established the program) may look to for 
decisions, recordkeeping, and reporting with respect to the 
account established for a designated beneficiary. The person or 
persons who make the contributions to the account need not be 
the same person who is regarded as the account owner for 
purposes of administering the account. Under many qualified 
tuition programs, the account owner generally has control over 
the account or contract, including the ability to change 
designated beneficiaries and to withdraw funds at any time and 
for any purpose. Thus, in practice, qualified tuition accounts 
or contracts generally involve a contributor, a designated 
beneficiary, an account owner (who oftentimes is not the 
contributor or the designated beneficiary), and an 
administrator of the account or contract.
---------------------------------------------------------------------------
    \3\Section 529 refers to contributors and designated beneficiaries, 
but does not define or otherwise refer to the term ``account owner,'' 
which is a commonly used term among qualified tuition programs.
---------------------------------------------------------------------------

                  QUALIFIED HIGHER EDUCATION EXPENSES

    For purposes of receiving a distribution from a qualified 
tuition program that qualifies for favorable tax treatment 
under the Code, qualified higher education expenses means 
tuition, fees, books, supplies, and equipment required for the 
enrollment or attendance of a designated beneficiary at an 
eligible educational institution, and expenses for special 
needs services in the case of a special needs beneficiary that 
are incurred in connection with such enrollment or attendance. 
Qualified higher education expenses generally also include room 
and board for students who are enrolled at least half-time. For 
taxable years 2009 and 2010 only, qualified higher education 
expenses included the purchase of any computer technology or 
equipment, or Internet access or related services, if such 
technology or services were to be used by the beneficiary or 
the beneficiary's family during any of the years a beneficiary 
was enrolled at an eligible institution.

              CONTRIBUTIONS TO QUALIFIED TUITION PROGRAMS

    Contributions to a qualified tuition program must be made 
in cash. Section 529 does not impose a specific dollar limit on 
the amount of contributions, account balances, or prepaid 
tuition benefits relating to a qualified tuition account; 
however, the program is required to have adequate safeguards to 
prevent contributions in excess of amounts necessary to provide 
for the beneficiary's qualified higher education expenses. 
Contributions generally are treated as a completed gift 
eligible for the gift tax annual exclusion. Contributions are 
not tax deductible for Federal income tax purposes, although 
they may be deductible for State income tax purposes. Amounts 
in the account accumulate on a tax-free basis (i.e., income on 
accounts in the plan is not subject to current income tax).
    A qualified tuition program may not permit any contributor 
to, or designated beneficiary under, the program to direct 
(directly or indirectly) the investment of any contributions 
(or earnings thereon) more than two times in any calendar year, 
and must provide separate accounting for each designated 
beneficiary. A qualified tuition program may not allow any 
interest in an account or contract (or any portion thereof) to 
be used as security for a loan.

             DISTRIBUTIONS FROM QUALIFIED TUITION PROGRAMS

    Distributions from a qualified tuition program are 
excludable from the distributee's gross income to the extent 
that the total distribution does not exceed the qualified 
higher education expenses incurred for the beneficiary.\4\
---------------------------------------------------------------------------
    \4\Sec. 529(c)(3)(B)(i) and (ii)(I).
---------------------------------------------------------------------------
    If distribution from a qualified tuition program exceeds 
the qualified higher education expenses incurred for the 
beneficiary, the amount includible in gross income is 
determined, first, by applying the annuity rules of section 
72\5\ to determine the amount which would be includible in 
gross income if none of the amount distributed was for 
qualified higher education expenses and, then, reducing that 
amount by an amount which bears the same ratio to that amount 
as the qualified higher education expenses bear to the amount 
of the distribution.\6\
---------------------------------------------------------------------------
    \5\Under section 72, a distribution is includible in income to the 
extent that the distribution represents earnings on the contribution to 
the program, determined on a pro rata basis.
    \6\Sec. 529(c)(3)(A) and (B)(ii).
---------------------------------------------------------------------------
    For example, assume a taxpayer had $5,000 in a qualified 
tuition program account, $4,000 of which was the amount 
contributed. Also assume the taxpayer withdraws $1,000 from the 
account and $500 is used for qualified higher education 
expenses. First, the taxpayer applies the annuity rules of 
section 72 which results in $200 being included in income under 
section 72 assuming none of the distribution is used for 
qualified higher education expenses. Then the taxpayer reduces 
the $200 by one-half because 50 percent of the distribution was 
used for qualified higher education expenses. Thus, $100 is 
includible in gross income. This amount is subject to an 
additional 10-percent tax (unless an exception applies).
    The Code provides that, except as provided by the Secretary 
of the Treasury (``Secretary''), for purposes of this 
calculation, the taxpayer's account value, income, and 
investment amount, are generally measured as of December 31st 
of the taxable year in which the distribution was made. The 
Secretary has issued guidance providing that the earnings 
portion of a distribution is to be computed on the date of each 
distribution.\7\
---------------------------------------------------------------------------
    \7\Notice 2001-81, 2001-2 C.B. 617, December 10, 2001.
---------------------------------------------------------------------------
    In the case of an individual who is the designated 
beneficiary for more than one qualified tuition program, all 
such accounts are aggregated for purposes of calculating the 
earnings in the account under section 72. The Secretary has 
provided in guidance that this aggregation is required only in 
the case of accounts contained within the same 529 program, 
having the same account owner and the same designated 
beneficiary.\8\
---------------------------------------------------------------------------
    \8\Ibid.
---------------------------------------------------------------------------

                           REASONS FOR CHANGE

    The Committee recognizes that computer technology is an 
essential part of higher education, and thus believes that 
funds used to purchase such technology should be considered a 
qualified educational expense for purposes of section 529. 
Additionally, the Committee believes that certain rules 
requiring aggregation of section 529 accounts are difficult to 
administer, adding a burden to 529 administrators. Finally, the 
Committee believes that 529 programs should be able to allow 
students who have received a refund of tuition that had been 
paid with the proceeds of a 529 account to recontribute such 
refund back into the account without being taxed and penalized.

                        EXPLANATION OF PROVISION

    The provision makes three modifications to section 529.
    First, the provision provides that qualified higher 
education expenses include the purchase of computer or 
peripheral equipment (as defined in section 168(i)(2)(B)), 
computer software (as defined in section 197(e)(3)(B)), or 
Internet access and related services if the equipment, 
software, or services are to be used primarily by the 
beneficiary during any of the years the beneficiary is enrolled 
at an eligible education institution.
    Second, the provision repeals the rules providing that 
section 529 accounts must be aggregated for purposes of 
calculating the amount of a distribution that is included in a 
taxpayer's income. Thus, in the case of a designated 
beneficiary who has received multiple distributions from a 
qualified tuition program in the taxable year, the portion of a 
distribution that represents earnings is now to be computed on 
a distribution-by-distribution basis, rather than an aggregate 
basis, such that the computation applies to each distribution 
from an account. The following example illustrates the 
operation of this provision: Assume that two designated savings 
accounts have been established by the same account owner within 
the same qualified tuition program for the same designated 
beneficiary. Account A contains $20,000, all of which consists 
of contributed amounts (i.e., it has no earnings). Account B 
contains $30,000, $20,000 of which constitutes an investment in 
the account, and $10,000 attributable to earnings on that 
investment. Assume a taxpayer were to receive a $10,000 
distribution from Account A, with none of the proceeds being 
spent on qualified higher education expenses. Under present 
law, both of the designated beneficiary's accounts would be 
aggregated for purposes of computing earnings. Thus, $2,000 of 
the $10,000 distribution from Account A ($10,000 * $10,000/
$50,000) would be included in the designated beneficiary's 
income. Under the provision, the accounts would not be 
aggregated for purposes of determining earnings on the account. 
Thus, because Account A has no earnings, no amount of the 
distribution would be included in the designated beneficiary's 
income for the taxable year.
    Third, the provision creates a new rule that provides, in 
the case of a designated beneficiary who received a refund of 
any higher education expenses, any distribution that was used 
to pay such refunded expenses shall not be subject to tax if 
the designated beneficiary recontributes the refunded amount to 
the qualified tuition program within 60 days of receiving the 
refund, only to the extent that such recontribution is not in 
excess of the refund. A transition rule allows for 
recontributions of amounts refunded after December 31, 2014 and 
before the date of enactment to be made not later than 60 days 
after the enactment of this provision.

                             EFFECTIVE DATE

    The provision allowing computer technology to be considered 
a higher education expense is effective for taxable years 
beginning after December 31, 2014. The provision removing the 
aggregation requirement in the case of multiple distributions 
is effective for distributions made after December 31, 2014. 
The provision allowing a recontribution of refunded tuition 
amounts is effective for tuition refunded after December 31, 
2014.

                      III. VOTES OF THE COMMITTEE

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the vote of the Committee on Ways and Means in its 
consideration of H.R. 529, a bill to amend the Internal Revenue 
Code of 1986 to improve 529 plans on February 12, 2015.
    The amendment by Mr. Davis to the amendment in the nature 
of a substitute, in which, under the amendment, 529 programs 
would be required to provide certain information regarding 
contributions and distributions required by the Secretary to be 
made public in aggregate form, was not agreed to by a roll call 
vote of 21 nays to 13 yeas (with a quorum being present). The 
vote was as follows:

----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative       Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Ryan.......................  ........     .........  Mr. Levin.........     ........  ........
IMr. Johnson...................  ........     .........  Mr. Rangel........     ........  ........
Mr. Brady......................  ........     .........  Mr. McDermott.....     ........  ........
Mr. Nunes......................  ........     .........  Mr. Lewis.........     ........  ........
Mr. Tiberi.....................  ........     .........  Mr. Neal..........     ........  ........
Mr. Reichert...................  ........     .........  Mr. Becerra.......     ........  ........
Mr. Boustany...................  ........     .........  Mr. Doggett.......     ........  ........
Mr. Roskam.....................  ........     .........  Mr. Thompson......     ........  ........
Mr. Price......................  ........  ........  .........  Mr. Larson........  ........  ........  ........
Mr. Buchanan...................  ........     .........  Mr. Blumenauer....     ........  ........
Mr. Smith (NE).................  ........     .........  Mr. Kind..........     ........  ........
Mr. Schock.....................  ........     .........  Mr. Pascrell......     ........  ........
Ms. Jenkins....................  ........     .........  Mr. Crowley.......     ........  ........
Mr. Paulsen....................  ........     .........  Mr. Davis.........     ........  ........
Mr. Marchant...................  ........  ........  .........  Ms. Sanchez.......  ........  ........  ........
Ms. Black......................  ........     .........  ..................  ........  ........  ........
Mr. Reed.......................  ........     .........  ..................  ........  ........  ........
Mr. Young......................  ........     .........  ..................  ........  ........  ........
Mr. Kelly......................  ........     .........  ..................  ........  ........  ........
Mr. Renacci....................  ........     .........  ..................  ........  ........  ........
Mr. Meehan.....................  ........  ........  .........  ..................  ........  ........  ........
Ms. Noem.......................  ........     .........  ..................  ........  ........  ........
Mr. Holding....................  ........     .........  ..................  ........  ........  ........
Mr. Smith (MO).................  ........     .........  ..................  ........  ........  ........
----------------------------------------------------------------------------------------------------------------

    The amendment by Mr. Davis to the amendment in the nature 
of a substitute, in which, under the amendment, taxpayers with 
adjusted gross incomes of more than $3 million would not be 
eligible to make contributions to 529 accounts, was not agreed 
to by a roll call vote of 23 nays to 14 yeas (with a quorum 
being present). The vote was as follows:

----------------------------------------------------------------------------------------------------------------
         Representative             Yea       Nay     Present     Representative      Yea       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Ryan.......................  ........     .........  Mr. Levin........     ........  .........
Mr. Johnson....................  ........     .........  Mr. Rangel.......     ........  .........
Mr. Brady......................  ........     .........  Mr. McDermott....     ........  .........
Mr. Nunes......................  ........     .........  Mr. Lewis........     ........  .........
Mr. Tiberi.....................  ........     .........  Mr. Neal.........     ........  .........
Mr. Reichert...................  ........     .........  Mr. Becerra......     ........  .........
Mr. Boustany...................  ........     .........  Mr. Doggett......     ........  .........
Mr. Roskam.....................  ........     .........  Mr. Thompson.....     ........  .........
Mr. Price......................  ........  ........  .........  Mr. Larson.......     ........  .........
Mr. Buchanan...................  ........     .........  Mr. Blumenauer...     ........  .........
Mr. Smith (NE).................  ........     .........  Mr. Kind.........     ........  .........
Mr. Schock.....................  ........     .........  Mr. Pascrell.....     ........  .........
Ms. Jenkins....................  ........     .........  Mr. Crowley......     ........  .........
Mr. Paulsen....................  ........     .........  Mr. Davis........     ........  .........
Mr. Marchant...................  ........     .........  Ms. Sanchez......     ........  .........
Ms. Black......................  ........     .........  .................  ........  ........  .........
Mr. Reed.......................  ........     .........  .................  ........  ........  .........
Mr. Young......................  ........     .........  .................  ........  ........  .........
Mr. Kelly......................  ........     .........  .................  ........  ........  .........
Mr. Renacci....................  ........     .........  .................  ........  ........  .........
Mr. Meehan.....................  ........     .........  .................  ........  ........  .........
Mr. Noem.......................  ........     .........  .................  ........  ........  .........
Mr. Holding....................  ........     .........  .................  ........  ........  .........
Mr. Smith (MO).................  ........     .........  .................  ........  ........  .........
----------------------------------------------------------------------------------------------------------------

    The bill, H.R. 529, was ordered favorably reported as 
amended to the House of Representatives by a voice vote (with a 
quorum being present).

                     IV. BUDGET EFFECTS OF THE BILL


               A. Committee Estimate of Budgetary Effects

    In compliance with clause 3(d) of rule XIII of the Rules of 
the House of Representatives, the following statement is made 
concerning the effects on the budget of the bill, H.R. 529, as 
reported.
    The bill, as reported, is estimated to have the following 
effect on Federal budget receipts for fiscal years 2015-2025:

----------------------------------------------------------------------------------------------------------------
                                     Fiscal years, in millions of dollars--
-----------------------------------------------------------------------------------------------------------------
  2015     2016     2017     2018     2019     2020    2021    2022    2023    2024    2025    2015-20   2015-25
----------------------------------------------------------------------------------------------------------------
    -1       -2       -2       -3       -3       -4       -5      -6      -7      -8     -10       -15       -51
----------------------------------------------------------------------------------------------------------------

    Pursuant to clause 8 of rule XIII of the Rules of the House 
of Representatives, the following statement is made by the 
Joint Committee on Taxation with respect to the provisions of 
the bill amending the Internal Revenue Code of 1986: the gross 
budgetary effect (before incorporating macroeconomic effects) 
in any fiscal year is less than 0.25 percent of the current 
projected gross domestic product of the United States for that 
fiscal year; therefore, the bill is not ``major legislation'' 
for purposes of requiring that the estimate include the 
budgetary effects of changes in economic output, employment, 
capital stock and other macroeconomic variables.

B. Statement Regarding New Budget Authority and Tax Expenditures Budget 
                               Authority

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee states that the 
bill involves no new or increased budget authority. The 
Committee further states that the revenue-reducing tax 
provisions involve increased tax expenditures. (See amounts in 
table in Part IV.A., above.)

      C. Cost Estimate Prepared by the Congressional Budget Office

    In compliance with clause 3(c)(3) of rule XIII of the Rules 
of the House of Representatives, requiring a cost estimate 
prepared by the CBO, the following statement by CBO is 
provided.

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, February 19, 2015.
Hon. Paul Ryan,
Chairman, Committee on Ways and Means,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 529, a bill to 
amend the Internal Revenue Code of 1986 to improve 529 plans.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Logan 
Timmerhoff.
            Sincerely,
                                         Robert A. Sunshine
                                        (For Douglas W. Elmendorf).
    Enclosure.

H.R. 529--A bill to amend the Internal Revenue Code of 1986 to improve 
        529 plans

    H.R. 529 would modify the tax treatment of college savings 
plans authorized under section 529 of the Internal Revenue 
Code. Under current law, income earned on amounts in those 
accounts accumulates on a tax-free basis, and the distribution 
of such income is not included in the taxable income of the 
recipient to the extent that it is used to pay certain higher 
education expenses. H.R. 529 would expand the qualifying 
expenses to include certain computer and related expenses. The 
bill would also modify the computation of the taxable portion 
of a distribution when the contributor has established multiple 
accounts for the student. In addition, H.R. 529 would allow 
beneficiaries to pay no tax in the event that they receive a 
refund from the educational institution (for example, after 
withdrawing from enrollment) and contribute the refunded amount 
back to the savings plan within 60 days.
    The staff of the Joint Committee on Taxation (JCT) 
estimates that enacting H.R. 529 would reduce revenues, thus 
increasing federal deficits, by $51 million over the 2015-2025 
period.
    The Statutory Pay-As-You-Go Act of 2010 establishes budget-
reporting and enforcement procedures for legislation affecting 
direct spending and revenues. Enacting H.R. 529 would result in 
revenue losses in each year beginning in 2015. The estimated 
increases in the deficit are shown in the following table.
    JCT has determined that the bill contains no 
intergovernmental or private-sector mandates as defined in the 
Unfunded Mandates Reform Act.
    The CBO staff contact for this estimate is Logan 
Timmerhoff. The estimate was approved by David Weiner, 
Assistant Director for Tax Analysis.

          CBO ESTIMATE OF PAY-AS-YOU-GO EFFECTS FOR H.R. 529, AS ORDERED REPORTED BY THE HOUSE COMMITTEE ON WAYS AND MEANS ON FEBRUARY 12, 2015
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                    By fiscal year, in millions of dollars--
                                                      --------------------------------------------------------------------------------------------------
                                                        2015   2016   2017   2018   2019   2020   2021   2022   2023   2024   2025  2015-2020  2015-2025
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                               NET INCREASE IN THE DEFICIT
 
Statutory Pay-As-You-Go Impact.......................      1      2      2      3      3      4      5      6      7      8     10        15        51
--------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Staff of the Joint Committee on Taxation.

     V. OTHER MATTERS TO BE DISCUSSED UNDER THE RULES OF THE HOUSE


          A. Committee Oversight Findings and Recommendations

    With respect to clause 3(c)(1) of rule XIII of the Rules of 
the House of Representatives (relating to oversight findings), 
the Committee advises that it was as a result of the 
Committee's review of the provisions of H.R. 529 that the 
Committee concluded that it is appropriate to report the bill, 
as amended, favorably to the House of Representatives with the 
recommendation that the bill do pass.

        B. Statement of General Performance Goals and Objectives

    With respect to clause 3(c)(4) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
bill contains no measure that authorizes funding, so no 
statement of general performance goals and objectives for which 
any measure authorizes funding is required.

              C. Information Relating to Unfunded Mandates

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995 (Pub. L. No. 104-
4).
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

                D. Applicability of House Rule XXI 5(b)

    Rule XXI 5(b) of the Rules of the House of Representatives 
provides, in part, that ``A bill or joint resolution, 
amendment, or conference report carrying a Federal income tax 
rate increase may not be considered as passed or agreed to 
unless so determined by a vote of not less than three-fifths of 
the Members voting, a quorum being present.'' The Committee has 
carefully reviewed the bill, and states that the bill does not 
involve any Federal income tax rate increases within the 
meaning of the rule.

                       E. Tax Complexity Analysis

    The following statement is made pursuant to clause 3(h)(1) 
of rule XIII of the Rules of the House of Representatives. 
Section 4022(b) of the Internal Revenue Service Restructuring 
and Reform Act of 1998 requires the staff of the Joint 
Committee on Taxation (in consultation with the Internal 
Revenue Service and the Treasury Department) to provide a tax 
complexity analysis. The complexity analysis is required for 
all legislation reported by the Senate Committee on Finance, 
the House Committee on Ways and Means, or any committee of 
conference if the legislation includes a provision that 
directly or indirectly amends the Internal Revenue Code and has 
widespread applicability to individuals or small businesses.
    Pursuant to clause 3(h)(1) of rule XIII of the Rules of the 
House of Representatives, the staff of the Joint Committee on 
Taxation has determined that a complexity analysis is not 
required under section 4022(b) of the IRS Reform Act because 
the bill contains no provisions that amend the Code and that 
have ``widespread applicability'' to individuals or small 
businesses, within the meaning of the rule.

  F. Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
                                Benefits

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill, and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                   G. Duplication of Federal Programs

    In compliance with Sec. 3(g)(2) of H. Res. 5 (114th 
Congress), the Committee states that no provision of the bill 
establishes or reauthorizes: (1) a program of the Federal 
Government known to be duplicative of another Federal program, 
(2) a program included in any report from the Government 
Accountability Office to Congress pursuant to section 21 of 
Public Law 111-139, or (3) a program related to a program 
identified in the most recent Catalog of Federal Domestic 
Assistance, published pursuant to the Federal Program 
Information Act (Public Law 95-220, as amended by Public Law 
98-169).

                 H. Disclosure of Directed Rule Makings

    In compliance with Sec. 3(i) of H. Res. 5 (114th Congress), 
the following statement is made concerning directed rule 
makings: The Committee estimates that the bill requires no 
directed rule makings within the meaning of such section.

       VI. CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

INTERNAL REVENUE CODE OF 1986

           *       *       *       *       *       *       *


Subtitle A--Income Taxes

           *       *       *       *       *       *       *


CHAPTER 1--NORMAL TAXES AND SURTAXES

           *       *       *       *       *       *       *


Subchapter F--Exempt Organizations

           *       *       *       *       *       *       *


                  PART VIII--CERTAIN SAVINGS ENTITIES

SEC. 529. QUALIFIED TUITION PROGRAMS.

  (a) General Rule.--A qualified tuition program shall be 
exempt from taxation under this subtitle. Notwithstanding the 
preceding sentence, such program shall be subject to the taxes 
imposed by section 511 (relating to imposition of tax on 
unrelated business income of charitable organizations).
  (b) Qualified Tuition Program.--For purposes of this 
section--
          (1) In general.--The term ``qualified tuition 
        program'' means a program established and maintained by 
        a State or agency or instrumentality thereof or by 1 or 
        more eligible educational institutions--
                  (A) under which a person--
                          (i) may purchase tuition credits or 
                        certificates on behalf of a designated 
                        beneficiary which entitle the 
                        beneficiary to the waiver or payment of 
                        qualified higher education expenses of 
                        the beneficiary, or
                          (ii) in the case of a program 
                        established and maintained by a State 
                        or agency or instrumentality thereof, 
                        may make contributions to an account 
                        which is established for the purpose of 
                        meeting the qualified higher education 
                        expenses of the designated beneficiary 
                        of the account, and
                  (B) which meets the other requirements of 
                this subsection.
        Except to the extent provided in regulations, a program 
        established and maintained by 1 or more eligible 
        educational institutions shall not be treated as a 
        qualified tuition program unless such program provides 
        that amounts are held in a qualified trust and such 
        program has received a ruling or determination that 
        such program meets the applicable requirements for a 
        qualified tuition program. For purposes of the 
        preceding sentence, the term ``qualified trust'' means 
        a trust which is created or organized in the United 
        States for the exclusive benefit of designated 
        beneficiaries and with respect to which the 
        requirements of paragraphs (2) and (5) of section 
        408(a) are met.
          (2) Cash contributions.--A program shall not be 
        treated as a qualified tuition program unless it 
        provides that purchases or contributions may only be 
        made in cash.
          (3) Separate accounting.--A program shall not be 
        treated as a qualified tuition program unless it 
        provides separate accounting for each designated 
        beneficiary.
          (4) Limited investment direction.--A program shall 
        not be treated as a qualified tuition program unless it 
        provides that any contributor to, or designated 
        beneficiary under, such program may, directly or 
        indirectly, direct the investment of any contributions 
        to the program (or any earnings thereon) no more than 2 
        times in any calendar year.
          (5) No pledging of interest as security.--A program 
        shall not be treated as a qualified tuition program if 
        it allows any interest in the program or any portion 
        thereof to be used as security for a loan.
          (6) Prohibition on excess contributions.--A program 
        shall not be treated as a qualified tuition program 
        unless it provides adequate safeguards to prevent 
        contributions on behalf of a designated beneficiary in 
        excess of those necessary to provide for the qualified 
        higher education expenses of the beneficiary.
  (c) Tax Treatment of Designated Beneficiaries and 
Contributors.--
          (1) In general.--Except as otherwise provided in this 
        subsection, no amount shall be includible in gross 
        income of--
                  (A) a designated beneficiary under a 
                qualified tuition program, or
                  (B) a contributor to such program on behalf 
                of a designated beneficiary,
        with respect to any distribution or earnings under such 
        program.
          (2) Gift tax treatment of contributions.--For 
        purposes of chapters 12 and 13--
                  (A) In general.--Any contribution to a 
                qualified tuition program on behalf of any 
                designated beneficiary--
                          (i) shall be treated as a completed 
                        gift to such beneficiary which is not a 
                        future interest in property, and
                          (ii) shall not be treated as a 
                        qualified transfer under section 
                        2503(e).
                  (B) Treatment of excess contributions.--If 
                the aggregate amount of contributions described 
                in subparagraph (A) during the calendar year by 
                a donor exceeds the limitation for such year 
                under section 2503(b), such aggregate amount 
                shall, at the election of the donor, be taken 
                into account for purposes of such section 
                ratably over the 5-year period beginning with 
                such calendar year.
          (3) Distributions.--
                  (A) In general.--Any distribution under a 
                qualified tuition program shall be includible 
                in the gross income of the distributee in the 
                manner as provided under section 72 to the 
                extent not excluded from gross income under any 
                other provision of this chapter.
                  (B) Distributions for qualified higher 
                education expenses.--For purposes of this 
                paragraph--
                          (i) In-kind distributions.--No amount 
                        shall be includible in gross income 
                        under subparagraph (A) by reason of a 
                        distribution which consists of 
                        providing a benefit to the distributee 
                        which, if paid for by the distributee, 
                        would constitute payment of a qualified 
                        higher education expense.
                          (ii) Cash distributions.--In the case 
                        of distributions not described in 
                        clause (i), if--
                                  (I) such distributions do not 
                                exceed the qualified higher 
                                education expenses (reduced by 
                                expenses described in clause 
                                (i)), no amount shall be 
                                includible in gross income, and
                                  (II) in any other case, the 
                                amount otherwise includible in 
                                gross income shall be reduced 
                                by an amount which bears the 
                                same ratio to such amount as 
                                such expenses bear to such 
                                distributions.
                          (iii) Exception for institutional 
                        programs.--In the case of any taxable 
                        year beginning before January 1, 2004, 
                        clauses (i) and (ii) shall not apply 
                        with respect to any distribution during 
                        such taxable year under a qualified 
                        tuition program established and 
                        maintained by 1 or more eligible 
                        educational institutions.
                          (iv) Treatment as distributions.--Any 
                        benefit furnished to a designated 
                        beneficiary under a qualified tuition 
                        program shall be treated as a 
                        distribution to the beneficiary for 
                        purposes of this paragraph.
                          (v) Coordination with Hope and 
                        Lifetime Learning credits.--The total 
                        amount of qualified higher education 
                        expenses with respect to an individual 
                        for the taxable year shall be reduced--
                                  (I) as provided in section 
                                25A(g)(2), and
                                  (II) by the amount of such 
                                expenses which were taken into 
                                account in determining the 
                                credit allowed to the taxpayer 
                                or any other person under 
                                section 25A.
                          (vi) Coordination with Coverdell 
                        education savings accounts.--If, with 
                        respect to an individual for any 
                        taxable year--
                                  (I) the aggregate 
                                distributions to which clauses 
                                (i) and (ii) and section 
                                530(d)(2)(A) apply, exceed
                                  (II) the total amount of 
                                qualified higher education 
                                expenses otherwise taken into 
                                account under clauses (i) and 
                                (ii) (after the application of 
                                clause (v)) for such year,
                        the taxpayer shall allocate such 
                        expenses among such distributions for 
                        purposes of determining the amount of 
                        the exclusion under clauses (i) and 
                        (ii) and section 530(d)(2)(A).
                  (C) Change in beneficiaries or programs.--
                          (i) Rollovers.--Subparagraph (A) 
                        shall not apply to that portion of any 
                        distribution which, within 60 days of 
                        such distribution, is transferred--
                                  (I) to another qualified 
                                tuition program for the benefit 
                                of the designated beneficiary, 
                                or
                                  (II) to the credit of another 
                                designated beneficiary under a 
                                qualified tuition program who 
                                is a member of the family of 
                                the designated beneficiary with 
                                respect to which the 
                                distribution was made.
                          (ii) Change in designated 
                        beneficiaries.--Any change in the 
                        designated beneficiary of an interest 
                        in a qualified tuition program shall 
                        not be treated as a distribution for 
                        purposes of subparagraph (A) if the new 
                        beneficiary is a member of the family 
                        of the old beneficiary.
                          (iii) Limitation on certain 
                        rollovers.--Clause (i)(I) shall not 
                        apply to any transfer if such transfer 
                        occurs within 12 months from the date 
                        of a previous transfer to any qualified 
                        tuition program for the benefit of the 
                        designated beneficiary.
                  [(D) Operating rules.--For purposes of 
                applying section 72--
                          [(i) to the extent provided by the 
                        Secretary, all qualified tuition 
                        programs of which an individual is a 
                        designated beneficiary shall be treated 
                        as one program,
                          [(ii) except to the extent provided 
                        by the Secretary, all distributions 
                        during a taxable year shall be treated 
                        as one distribution, and
                          [(iii) except to the extent provided 
                        by the Secretary, the value of the 
                        contract, income on the contract, and 
                        investment in the contract shall be 
                        computed as of the close of the 
                        calendar year in which the taxable year 
                        begins.]
                  (D) Special rule for contributions of 
                refunded amounts.--In the case of a beneficiary 
                who receives a refund of any qualified higher 
                education expenses from an eligible educational 
                institution, subparagraph (A) shall not apply 
                to that portion of any distribution for the 
                taxable year which is recontributed to a 
                qualified tuition program of which such 
                individual is a beneficiary, but only to the 
                extent such recontribution is made not later 
                than 60 days after the date of such refund and 
                does not exceed the refunded amount.
          (4) Estate tax treatment.--
                  (A) In general.--No amount shall be 
                includible in the gross estate of any 
                individual for purposes of chapter 11 by reason 
                of an interest in a qualified tuition program.
                  (B) Amounts includible in estate of 
                designated beneficiary in certain cases.--
                Subparagraph (A) shall not apply to amounts 
                distributed on account of the death of a 
                beneficiary.
                  (C) Amounts includible in estate of donor 
                making excess contributions.--In the case of a 
                donor who makes the election described in 
                paragraph (2)(B) and who dies before the close 
                of the 5-year period referred to in such 
                paragraph, notwithstanding subparagraph (A), 
                the gross estate of the donor shall include the 
                portion of such contributions properly 
                allocable to periods after the date of death of 
                the donor.
          (5) Other gift tax rules.--For purposes of chapters 
        12 and 13--
                  (A) Treatment of distributions.--Except as 
                provided in subparagraph (B), in no event shall 
                a distribution from a qualified tuition program 
                be treated as a taxable gift.
                  (B) Treatment of designation of new 
                beneficiary.--The taxes imposed by chapters 12 
                and 13 shall apply to a transfer by reason of a 
                change in the designated beneficiary under the 
                program (or a rollover to the account of a new 
                beneficiary) unless the new beneficiary is--
                          (i) assigned to the same generation 
                        as (or a higher generation than) the 
                        old beneficiary (determined in 
                        accordance with section 2651), and
                          (ii) a member of the family of the 
                        old beneficiary.
          (6) Additional tax.--The tax imposed by section 
        530(d)(4) shall apply to any payment or distribution 
        from a qualified tuition program in the same manner as 
        such tax applies to a payment or distribution from an 
        Coverdell education savings account. This paragraph 
        shall not apply to any payment or distribution in any 
        taxable year beginning before January 1, 2004, which is 
        includible in gross income but used for qualified 
        higher education expenses of the designated 
        beneficiary.
  (d) Reports.--Each officer or employee having control of the 
qualified tuition program or their designee shall make such 
reports regarding such program to the Secretary and to 
designated beneficiaries with respect to contributions, 
distributions, and such other matters as the Secretary may 
require. The reports required by this subsection shall be filed 
at such time and in such manner and furnished to such 
individuals at such time and in such manner as may be required 
by the Secretary.
  (e) Other Definitions and Special Rules.--For purposes of 
this section--
          (1) Designated beneficiary.--The term ``designated 
        beneficiary'' means--
                  (A) the individual designated at the 
                commencement of participation in the qualified 
                tuition program as the beneficiary of amounts 
                paid (or to be paid) to the program,
                  (B) in the case of a change in beneficiaries 
                described in subsection (c)(3)(C), the 
                individual who is the new beneficiary, and
                  (C) in the case of an interest in a qualified 
                tuition program purchased by a State or local 
                government (or agency or instrumentality 
                thereof) or an organization described in 
                section 501(c)(3) and exempt from taxation 
                under section 501(a) as part of a scholarship 
                program operated by such government or 
                organization, the individual receiving such 
                interest as a scholarship.
          (2) Member of family.--The term ``member of the 
        family'' means, with respect to any designated 
        beneficiary--
                  (A) the spouse of such beneficiary;
                  (B) an individual who bears a relationship to 
                such beneficiary which is described in 
                subparagraphs (A) through (G) of section 
                152(d)(2);
                  (C) the spouse of any individual described in 
                subparagraph (B); and
                  (D) any first cousin of such beneficiary.
          (3) Qualified higher education expenses.--
                  (A) In general.--The term ``qualified higher 
                education expenses'' means--
                          (i) tuition, fees, books, supplies, 
                        and equipment required for the 
                        enrollment or attendance of a 
                        designated beneficiary at an eligible 
                        educational institution;
                          (ii) expenses for special needs 
                        services in the case of a special needs 
                        beneficiary which are incurred in 
                        connection with such enrollment or 
                        attendance
                          [(iii) expenses paid or incurred in 
                        2009 or 2010 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 by the 
                        beneficiary and the beneficiary's 
                        family during any of the years the 
                        beneficiary is enrolled at an eligible 
                        educational institution.]
                          (iii) expenses for the purchase of 
                        computer or peripheral equipment (as 
                        defined in section 168(i)(2)(B)), 
                        computer software (as defined in 
                        section 197(e)(3)(B)), or Internet 
                        access and related services, if such 
                        equipment, software, or services are to 
                        be used primarily by the beneficiary 
                        during any of the years the beneficiary 
                        is 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) Room and board included for students who 
                are at least half-time.--
                          (i) In general.--In the case of an 
                        individual who is an eligible student 
                        (as defined in section 25A(b)(3)) for 
                        any academic period, such term shall 
                        also include reasonable costs for such 
                        period (as determined under the 
                        qualified tuition program) incurred by 
                        the designated beneficiary for room and 
                        board while attending such institution. 
                        For purposes of subsection (b)(6), a 
                        designated beneficiary shall be treated 
                        as meeting the requirements of this 
                        clause.
                          (ii) Limitation.--The amount treated 
                        as qualified higher education expenses 
                        by reason of clause (i) shall not 
                        exceed--
                                  (I) the allowance (applicable 
                                to the student) for room and 
                                board included in the cost of 
                                attendance (as defined in 
                                section 472 of the Higher 
                                Education Act of 1965 (20 
                                U.S.C. 1087ll), as in effect on 
                                the date of the enactment of 
                                the Economic Growth and Tax 
                                Relief Reconciliation Act of 
                                2001) as determined by the 
                                eligible educational 
                                institution for such period, or
                                  (II) if greater, the actual 
                                invoice amount the student 
                                residing in housing owned or 
                                operated by the eligible 
                                educational institution is 
                                charged by such institution for 
                                room and board costs for such 
                                period.
          (4) Application of section 514.--An interest in a 
        qualified tuition program shall not be treated as debt 
        for purposes of section 514.
          (5) Eligible educational institution.--The term 
        ``eligible educational institution'' means an 
        institution--
                  (A) which is described in section 481 of the 
                Higher Education Act of 1965 (20 U.S.C. 1088), 
                as in effect on the date of the enactment of 
                this paragraph, and
                  (B) which is eligible to participate in a 
                program under title IV of such Act.
  (f) Regulations.--Notwithstanding any other provision of this 
section, the Secretary shall prescribe such regulations as may 
be necessary or appropriate to carry out the purposes of this 
section and to prevent abuse of such purposes, including 
regulations under chapters 11, 12, and 13 of this title.

           *       *       *       *       *       *       *


                         VII. ADDITIONAL VIEWS

    We are supportive of the technical changes made by H.R. 529 
that would reinstate the technology expenses permitted in 2009 
and 2010 and allow any college refunds to be reinvested back 
into one's account within 60 days. However, we continue to be 
concerned about the Committee passing bills without any offset 
and the lack of concrete data on 529 accounts.
    The Joint Committee on Taxation estimated this bill to cost 
$51 million over 10 years. At the markup, we offered an 
amendment that would have paid for the cost of this bill. Under 
the amendment, 529 programs would have been available to 
taxpayers with adjusted gross incomes of $3 million or less. 
The Republicans voted against this amendment.
    We also offered an amendment that would have required 
Treasury to provide a report on 529 plans, including 
contributions, distributions, and other relevant data. The 
Republicans voted against this amendment.
    At the end of the day, we should keep in mind that, 
according to a December 2012 GAO report, 529 accounts are used 
by only three percent (3%) of American families. While this 
Committee does not have full jurisdiction over education, we 
should take seriously our responsibility to join in addressing 
the college affordability crisis gripping our country.
                                           Sander M. Levin,
                                                    Ranking Member.

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