[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 1096 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                S. 1096

  To amend the Internal Revenue Code of 1986 to provide that certain 
postsecondary educational benefits provided by an employer to children 
   of employees shall be excludable from gross income as part of an 
                    educational assistance program.


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                   IN THE SENATE OF THE UNITED STATES

                              May 21, 2003

   Mr. Bayh 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 provide that certain 
postsecondary educational benefits provided by an employer to children 
   of employees shall be excludable from gross income as part of an 
                    educational assistance program.

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

SECTION 1. CERTAIN POSTSECONDARY EDUCATIONAL BENEFITS PROVIDED BY AN 
              EMPLOYER TO CHILDREN OF EMPLOYEES EXCLUDABLE FROM GROSS 
              INCOME UNDER EDUCATIONAL ASSISTANCE PROGRAMS.

    (a) In General.--Section 127 of the Internal Revenue Code of 1986 
(relating to educational assistance programs) is amended by 
redesignating subsection (d) as subsection (e), and inserting after 
subsection (c) the following:
    ``(d) Post Secondary Educational Benefits Provided to Children of 
Employees.--
            ``(1) In general.--For purposes of this section, 
        educational assistance provided by the employer to a child (as 
        defined in section 151(c)(3)) of an employee of such employer 
        pursuant to an educational assistance program shall be treated 
        as educational assistance provided for the exclusive benefit of 
        the employee.
            ``(2) Dollar limitations.--The amount excluded from the 
        gross income of the employee by reason of paragraph (1) for a 
        taxable year with respect to amounts provided to each child of 
        such employee shall not exceed $2,000.
            ``(3) Limitation on educational assistance.--Paragraph (1) 
        shall only apply to expenses paid or incurred in connection 
        with the enrollment or attendance of a child of an employee at 
        an educational institution described in section 529(e)(5).''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of enactment of this Act.
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