[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5031 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5031

 To amend the Internal Revenue Code of 1986 to allow a credit against 
     tax for individuals age 18 through 30 for certain retirement 
                             contributions.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 15, 2010

 Mrs. Capito 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 allow a credit against 
     tax for individuals age 18 through 30 for certain retirement 
                             contributions.

    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 ``Young Savers' Tax Credit Act of 
2010''.

SEC. 2. YOUNG SAVER'S CREDIT.

    (a) In General.--Section 25B of the Internal Revenue Code of 1986 
(relating to elective deferrals and IRA contributions by certain 
individuals) is amended by adding at the end the following new 
subsection:
    ``(h) Young Saver's Credit.--
            ``(1) In general.--In the case of a qualified young saver, 
        the credit determined under subsection (a) shall be an amount 
        equal to so much of the qualified retirement savings 
        contributions of such individual for the taxable year as does 
        not exceed $500.
            ``(2) Qualified young saver.--For purposes of this 
        subsection, the term `qualified young saver' means any eligible 
        individual--
                    ``(A) who elects the application of this subsection 
                for the taxable year,
                    ``(B) who has not attained the age of 31 before the 
                end of the taxable year, and
                    ``(C) whose aggregate qualified retirement savings 
                contributions for the taxable year are not less than an 
                amount equal to 1 percent of the compensation 
                includible in the individual's gross income for such 
                taxable year.
            ``(3) Limitation based on modified adjusted gross income.--
                    ``(A) In general.--The credit which would (but for 
                this paragraph) be determined under subsection (h) for 
                the taxable year shall be reduced (but not below zero) 
                by the amount determined under subparagraph (B).
                    ``(B) Amount of reduction.--The amount determined 
                under this paragraph is the amount which bears the same 
                ratio to the amount which would be so taken into 
                account as--
                            ``(i) the excess of--
                                    ``(I) the taxpayer's adjusted gross 
                                income for such taxable year, over
                                    ``(II) $50,000 ($100,000 in the 
                                case of a joint return), bears to
                            ``(ii) $20,000 ($40,000 in the case of a 
                        joint return).
            ``(4) Inflation adjustment.--
                    ``(A) In general.--In the case of a taxable year 
                beginning after 2010, each of the dollar amounts in 
                paragraph (3) shall be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year in which the taxable year begins, 
                        determined by substituting `calendar year 2009' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                    ``(B) Rounding.--If any amount as adjusted under 
                subparagraph (A) is not a multiple of $500, such amount 
                shall be rounded to the next lowest multiple of 
                $500.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2009.
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