[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1518 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1518

To amend the Internal Revenue Code of 1986 to expand the exclusion for 
    employer-provided educational assistance to include educational 
            assistance provided to dependents of employees.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 6, 2005

 Mr. Keller (for himself, Mr. Foley, and Mr. English of Pennsylvania) 
 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 expand the exclusion for 
    employer-provided educational assistance to include educational 
            assistance provided to dependents of employees.

    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 ``Family Friendly Employers Act of 
2005''.

SEC. 2. EXCLUSION FOR EMPLOYER-PROVIDED EDUCATIONAL ASSISTANCE PROVIDED 
              TO DEPENDENTS OF EMPLOYEES.

    (a) In General.--Paragraph (1) of section 127(c) of the Internal 
Revenue Code of 1986 (defining educational assistance) is amended--
            (1) by inserting ``or a dependent of the employee'' after 
        ``education of the employee'' in subparagraph (A), and
            (2) by inserting ``or dependent'' after ``employee'' in 
        subparagraph (B) and in the material following subparagraph 
        (B).
    (b) Separate Limitation for Dependents.--Subsection (a) of section 
127 of such Code is amended by adding at the end the following new 
paragraph:
            ``(3) Maximum exclusion for assistance furnished to 
        dependents.--If, but for this paragraph, this section would 
        exclude from gross income more than $2,500 of educational 
        assistance furnished to the dependents of an employee (in the 
        aggregate) during a calendar year, this section shall apply 
        only to the first $2,500 of such assistance so furnished.''.
    (c) Conforming Amendment.--Paragraph (2) of section 127(a) of such 
Code is amended--
            (1) by striking ``an individual'' and inserting ``the 
        employee'', and
            (2) in the heading thereof by striking ``maximum 
        exclusion'' and inserting ``maximum exclusion for assistance 
        furnished to employee''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
                                 <all>