II
118th CONGRESS
1st Session
S. 426
IN THE SENATE OF THE UNITED STATES
February 15, 2023
Mr. Kennedy 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 increase and provide an inflation adjustment for the limitation on distributions from qualified tuition programs that may be used for elementary and secondary tuition.
Short title
This Act may be cited as the Inflation-Adjusted Education Investment Act
.
Increase on limitation on expenses used for elementary and secondary tuition
In general
The last sentence of section 529(e)(3)(A) of the Internal Revenue Code of 1986 is amended by striking $10,000
and inserting $12,000
.
Inflation adjustment
Section 529(e)(3) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:
Inflation adjustment
In general
In the case of any taxable year beginning in a calendar year after 2023, the $12,000 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 the taxable year begins, determined by substituting calendar year 2022
for calendar year 2016
in subparagraph (A)(ii) thereof.
Rounding
Any increase determined under clause (i) shall be rounded to the nearest multiple of $500.
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2022.
