H. R. 4428
IN THE HOUSE OF REPRESENTATIVES
July 13, 2021
Mr. Smith of Missouri (for himself and Mr. Danny K. Davis of Illinois) introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to increase the exclusion for educational assistance programs and to allow the exclusion with respect to education-related tools and technology.
This Act may be cited as the
Upward Mobility Enhancement Act.
Increase in exclusion for educational assistance programs
Section 127(a)(2) of the Internal Revenue Code of 1986 is amended to read as follows:
This section shall apply only to the first $12,000 of educational assistance furnished to an individual during a calendar year, in the case of assistance for education below the graduate level.
In the case of any calendar year after 2021, the dollar amount in subparagraph (A) shall be increased by an amount equal to—
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which such taxable year begins by substituting
calendar year 2020 for
calendar year 2016 in subparagraph (A)(ii) thereof.
The amendment made by this section shall apply to taxable years beginning after December 31, 2020.
Expenses for education-related tools and technology
Section 127(c)(1) of the Internal Revenue Code of 1986 is amended by striking
equipment both places it appears in subparagraphs (A) and (C) thereof and inserting
education-related tools and technology and other equipment.
Education-Related tools and technology
Section 127(c) of such Code is amended by adding at the end the following new paragraph:
Education-related tools and technology
For purposes of paragraph (1), the term
education-related tools and technology includes any—
hand tools and construction equipment,
computer or peripheral equipment (as defined in section 168(i)(2)(B)),
computer software (as defined in section 197(e)(3)(B)),
Internet access and related services (including equipment or technology necessary for Internet access),
Internet, mobile, or virtual reality learning tools and technology,
licensure fees, materials, or other equipment, and
any other tools or technology as determined by the Secretary,
Employee retention of education-Related tools and technology
Section 127(c)(1) of such Code is amended by striking
completion of a course of instruction, and inserting
completion of a course of instruction (other than education-related tools and technology not described in paragraph (8)(D)),.
The amendments made by this section shall apply to amounts paid or incurred on or after the first day of the calendar quarter which includes the date of the enactment of this Act.