[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 248 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 248

      To amend the Internal Revenue Code of 1986 to provide that 
 distributions from qualified State tuition programs which are used to 
   pay educational expenses shall not be includible in gross income.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 30, 2001

  Mr. Bachus 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 provide that 
 distributions from qualified State tuition programs which are used to 
   pay educational expenses shall not be includible in gross income.

    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 ``College Savings Protection Act''.

SEC. 2. EXCLUSION FROM GROSS INCOME OF DISTRIBUTIONS FROM QUALIFIED 
              STATE TUITION PROGRAMS WHICH ARE USED FOR EDUCATIONAL 
              PURPOSES.

    (a) In General.--Subparagraph (B) of section 529(c)(3) of the 
Internal Revenue Code of 1986 is amended to read as follows:
                    ``(B) Distributions for qualified higher education 
                expenses.--Subparagraph (A) shall not apply to any 
                distribution to the extent--
                            ``(i) the distribution is used exclusively 
                        to pay qualified higher education expenses of 
                        the distributee, or
                            ``(ii) the distribution consists of 
                        providing a benefit to the distributee which, 
                        if paid for by the distributee, would 
                        constitute payment of a qualified higher 
                        education expense.''
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2000.
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