[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3655 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 3655

     To amend the Internal Revenue Code of 1986 to exclude from an 
      employee's gross income any employer-provided supplemental 
       instructional services assistance, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 30 (legislative day, September 17), 2008

   Ms. Snowe 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 exclude from an 
      employee's gross income any employer-provided supplemental 
       instructional services assistance, and for other purposes.

    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 ``Affordable Tutoring of Our Children 
Act''.

SEC. 2. EXCLUSION OF EMPLOYER-PROVIDED SUPPLEMENTAL INSTRUCTIONAL 
              SERVICES ASSISTANCE.

    (a) In General.--Section 129 of the Internal Revenue Code of 1986 
(relating to dependent care assistance programs) is amended--
            (1) by inserting ``and supplemental instructional services 
        assistance'' after ``dependent care assistance'' each place it 
        appears (except in subsections (d)(4) and (e)(1) thereof), and
            (2) by inserting ``and supplemental instructional 
        services'' after ``dependent care services'' both places it 
        appears in subsection (a)(2).
    (b) Supplemental Instructional Services Assistance.--Section 129(e) 
of the Internal Revenue Code of 1986 (relating to definitions and 
services) is amended by redesignating paragraphs (2) through (9) as 
paragraphs (3) through (10), respectively, and by inserting after 
paragraph (1) the following new paragraph:
            ``(2) Supplemental instructional services assistance.--
                    ``(A) In general.--The term `supplemental 
                instructional services assistance' means the payment 
                of, or provision of, supplemental instructional 
                services to an employee's dependent (as defined in 
                subsection (a)(1) of section 152, determined without 
                regard to subsection (c)(1)(C) thereof) who--
                            ``(i) has attained the age of 5 but not the 
                        age of 19 as of the close of the calendar year 
                        in which the taxable year of the employee 
                        begins, and
                            ``(ii) has not obtained a high school 
                        diploma or been awarded a general education 
                        degree.
                    ``(B) Supplemental instructional services.--The 
                term `supplemental instructional services' means 
                instructional or other academic enrichment services 
                which are--
                            ``(i) in addition to instruction provided 
                        during the school day,
                            ``(ii) specifically designed to increase 
                        the academic achievement of such dependent,
                            ``(iii) in the core academic studies of 
                        English, reading or language arts, mathematics, 
                        science, foreign languages, civics and 
                        government, economics, arts, social studies, 
                        and geography, and
                            ``(iv) provided by a State certified 
                        instructor or accredited organization.''.
    (c) No Exclusion for Supplemental Instructional Services Assistance 
Provided to Highly Compensated Employees.--Section 129(a)(2)(A) of the 
Internal Revenue Code of 1986 (relating to limitation of exclusion) is 
amended by inserting ``, except that no amount may be excluded under 
paragraph (1) for supplemental instructional services paid or incurred 
by an employee who is a highly compensated employee (within the meaning 
of section 414(q))'' after ``individual)''.
    (d) Conforming Amendments.--
            (1) Section 21(b)(2)(A) of the Internal Revenue Code of 
        1986 is amended by adding at the end the following new 
        sentence: ``Such term shall not include any amount paid for 
        supplemental instructional services (as defined in section 
        129(e)(2)(B)).''.
            (2) The second sentence of section 21(c) of such Code is 
        amended by inserting ``of dependent care assistance'' after 
        ``aggregate amount''.
            (3) Section 6051(a)(9) of such Code is amended by inserting 
        ``and supplemental instructional services assistance'' after 
        ``dependent care assistance'' both places it appears.
    (e) Clerical Amendments.--
            (1) The heading for section 129 of the Internal Revenue 
        Code of 1986 is amended by inserting ``and supplemental 
        instructional services assistance'' after ``assistance''.
            (2) The item relating to section 129 in the table of 
        sections for part III of subchapter B of chapter 1 of such Code 
        is amended by inserting ``and supplemental instructional 
        services assistance'' after ``assistance''.
    (f) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.
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