[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2994 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 2994

To make qualified tuition programs permanent and to amend the Internal 
 Revenue Code of 1986 to allow a deduction for amounts contributed to 
                      qualified tuition programs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 20, 2005

    Mr. Rogers of Michigan introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To make qualified tuition programs permanent and to amend the Internal 
 Revenue Code of 1986 to allow a deduction for amounts contributed to 
                      qualified tuition programs.

    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 ``Securing Affordable Vocational and 
Collegiate Education (SAVE) Act of 2005''.

SEC. 2. REPEAL OF THE SUNSET WITH RESPECT TO QUALIFIED TUITION 
              PROGRAMS.

    Section 901 of the Economic Growth and Tax Relief Reconciliation 
Act of 2001 shall not apply to section 402 of such Act.

SEC. 3. DEDUCTION FOR PAYMENTS TO QUALIFIED TUITION PROGRAMS.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions for individuals) is amended by redesignating section 224 as 
section 225 and by inserting after section 223 the following new 
section:

``SEC. 224. PAYMENTS TO QUALIFIED TUITION PROGRAMS.

    ``(a) Allowance of Deduction.--In the case of an individual, there 
shall be allowed as a deduction an amount equal to the amount paid by 
the taxpayer during the taxable year to any qualified tuition program 
(as defined in section 529) for the benefit of any designated 
beneficiary (as defined in such section).
    ``(b) Dollar Limitation.--The deduction allowed by subsection (a) 
for the taxable year shall not exceed $5,000 ($10,000 in the case of a 
joint return).''.
    (b) Deduction Allowed in Computing Adjusted Gross Income.--Section 
62(a) of such Code is amended by redesignating paragraph (19) (relating 
to costs involving discrimination suits, etc.) as paragraph (20) and by 
inserting after paragraph (20) the following new paragraph:
            ``(21) Payments to qualified tuition programs.--The 
        deduction allowed by section 224.''.
    (c) Conforming Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by redesignating the 
item relating to section 224 as an item relating to section 225 and by 
inserting after the item relating to section 223 the following new 
item:

``Sec. 224. Payments to qualified tuition programs.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2004.
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