[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1305 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1305

   To amend the Internal Revenue Code of 1986 to make permanent and 
             refundable, and to expand, the saver's credit.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 15, 2005

 Mr. Emanuel (for himself, Mr. Becerra, Mr. Larson of Connecticut, Mr. 
 McDermott, Mr. Meeks of New York, and Mr. Abercrombie) 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 make permanent and 
             refundable, and to expand, the saver's credit.

    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 ``Retirement Savings for Working 
Americans Act''.

SEC. 2. EXPANDED, PERMANENT, AND REFUNDABLE SAVER'S CREDIT.

    (a) Credit Made Refundable.--The Internal Revenue Code of 1986 is 
amended by redesignating section 36 as section 37, by redesignating 
section 25B as section 36, and by moving section 36 (as so 
redesignated) from subpart A of part IV of subchapter A of chapter 1 
(relating to nonrefundable personal credits) to immediately after 
section 35 in subpart C of such part (relating to refundable credits).
    (b) Expansion of Phaseout Ranges.--Subsection (b) of section 36 of 
such Code (as redesignated under this section) is amended to read as 
follows:
    ``(b) Applicable Percentage.--For purposes of this section--
            ``(1) In general.--Except as provided in paragraph (2), the 
        applicable percentage is 50 percent.
            ``(2) Phaseout.--With respect to any taxpayer for any 
        taxable year, the applicable percentage shall be reduced (but 
        not below zero) by the percentage which bears the same ratio to 
        50 percent as--
                    ``(A) the excess of--
                            ``(i) the taxpayer's adjusted gross income 
                        for such taxable year, over
                            ``(ii) the applicable dollar amount, bears 
                        to
                    ``(B) the phaseout range.
        If any reduction under this paragraph is not a multiple of 1 
        percent, such reduction shall be rounded to the nearest 
        multiple of 1 percent.
            ``(3) Applicable dollar amount; phaseout range.--The 
        applicable dollar amount and the phaseout range shall be 
        determined in accordance with the following table:

 
                                                                                                   The phaseout
                ``In the case of:                        The applicable dollar amount is:           range is:
 
A joint return..................................  $60,000                                               $10,000
A head of a household...........................  $45,000                                                $7,500
Any other case..................................  $30,000                                             $5,000''.
 

    (c) Credit Made Permanent.--Section 36 of such Code (as 
redesignated under this section) is amended by striking subsection (h).
    (d) Conforming Amendments.--
            (1) Section 24(b)(3)(B) of such Code is amended by striking 
        ``and 25B''.
            (2) Section 25(e)(1)(C) of such Code is amended by striking 
        ``25B,''.
            (3) Sections 26(a)(1), 904(i), and 1400C(d) of such Code 
        are each amended by striking ``24, and 25B'' and inserting 
        ``and 24''.
            (4) The heading of section 36 of such Code (as redesignated 
        under this section) is amended by striking ``elective'' and 
        inserting ``saver's credit: elective''.
            (5) Section 36 of such Code (as so redesignated) is amended 
        by striking subsection (g).
            (6) The table of sections for subpart A of part IV of 
        subchapter A of chapter 1 of such Code is amended by striking 
        the item relating to section 25B.
            (7) The table of sections for subpart C of such part is 
        amended by redesignating the item relating to section 36 as an 
        item relating to section 37 and by inserting before such item 
        the following new item:

``Sec. 36. Saver's credit: elective deferrals and IRA contributions by 
                            certain individuals.''.
            (8) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``or 36'' after ``section 35''.
    (e) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2005.
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