[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2683 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2683

   To amend the Internal Revenue Code of 1986 to clarify that church 
    employees are eligible for the exclusion for qualified tuition 
      reduction programs of charitable educational organizations.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 26, 2002

Mr. Hutchinson 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 clarify that church 
    employees are eligible for the exclusion for qualified tuition 
      reduction programs of charitable educational organizations.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CLARIFICATION OF ELIGIBILITY OF CHURCH EMPLOYEES FOR 
              EXCLUSION FOR QUALIFIED TUITION REDUCTION PROGRAMS OF 
              CHARITABLE EDUCATIONAL ORGANIZATIONS.

    (a) In General.--Paragraph (2) of section 117(d) of the Internal 
Revenue Code of 1986 (defining qualified tuition reduction) is amended 
to read as follows:
            ``(2) Qualified tuition reduction.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified tuition 
                reduction' means the amount of any reduction in tuition 
                provided to an employee of--
                            ``(i) an organization described in section 
                        170(b)(1)(A)(ii), or
                            ``(ii) an organization described in section 
                        170(b)(1)(A)(i) that owns and operates or 
                        controls an organization described in section 
                        170(b)(1)(A)(ii),
                for the education (below the graduate level) at the 
                organization described in clause (i) (or another 
                organization described in section 170(b)(1)(A)(ii)) of 
                a person described in subparagraph (B).
                    ``(B) Person described.--A person is described in 
                this subparagraph if such person is--
                            ``(i) the employee referred to in 
                        subparagraph (A), or
                            ``(ii) any person treated as an employee 
                        (or whose use is treated as an employee use) 
                        under the rules of section 132(h).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years ending after the date of the enactment of this Act.
                                 <all>