[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3090 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3090

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 9, 2010

Mrs. Gillibrand 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 expand the availability 
        of the saver's credit and to make the credit refundable.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. MODIFICATION OF SAVER'S CREDIT.

    (a) 50 Percent Credit for All Taxpayers: Expansion of Phaseout 
Ranges.--Subsection (b) of section 25B of the Internal Revenue Code of 
1986 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.--The percentage under paragraph (1) shall 
        be reduced (but not below zero) by the number of percentage 
        points which bears the same ratio to 50 percentage points 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 determined under this paragraph is not a whole 
        percentage point, such reduction shall be rounded to the 
        nearest whole percentage point.
            ``(3) Applicable dollar amount; phaseout range.--
                    ``(A) Joint returns.--Except as provided in 
                subparagraph (B)--
                            ``(i) the applicable dollar amount is 
                        $65,000, and
                            ``(ii) the phaseout range is $20,000.
                    ``(B) Other returns.--In the case of--
                            ``(i) a head of a household (as defined in 
                        section 2(b)), the applicable dollar amount and 
                        the phaseout range shall be \3/4\ of the 
                        amounts applicable under subparagraph (A) (as 
                        adjusted under paragraph (4)), and
                            ``(ii) any taxpayer who is not filing a 
                        joint return and who is not a head of a 
                        household (as so defined), the applicable 
                        dollar amount and the phaseout range shall be 
                        \1/2\ of the amounts applicable under 
                        subparagraph (A) (as so adjusted).
            ``(4) Inflation adjustment of applicable dollar amount.--In 
        the case of any taxable year beginning in a calendar year after 
        2011, the dollar amount in paragraph (3)(A)(i) shall be 
        increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) 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 2010' for `calendar year 1992' in 
                subparagraph (B) thereof.
        Any increase determined under the preceding sentence shall be 
        rounded to the nearest multiple of $500.''.
    (b) Credit Made Refundable.--
            (1) Credit made refundable.--The Internal Revenue Code of 
        1986 is amended by moving section 25B to subpart C of part IV 
        of subchapter A of chapter 1 of such Code (relating to 
        refundable credits), by inserting section 25B after section 
        36A, and by redesignating section 25B as section 36B.
            (2) Conforming amendments.--
                    (A) Sections 24(b)(3)(B), 25(e)(1)(C), 26(a)(1), 
                and 1400C(d) of such Code are each amended by striking 
                ``25B,''.
                    (B) The last sentence of section 25A(i)(5) of such 
                Code is amended by striking ``25B'' and inserting 
                ``36B''.
                    (C) Sections 904(i) of such Code is amended by 
                striking ``23, 24, and 25B,'' and inserting ``23 and 
                24''.
                    (D) Section 6211(b)(4)(A) of such Code is amended 
                by inserting ``36B,'' after ``36A,''.
                    (E) 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.
                    (F) The table of sections for subpart C of such 
                part is amended by adding at the end the following new 
                item:

``Sec. 36B. Elective deferrals and IRA contributions by certain 
                            individuals.''.
                    (G) Section 1324(b)(2) of title 31, United States 
                Code, is amended by inserting ``36B,'' after ``36A,''.
    (c) Maximum Contributions.--Subsection (a) of section 36B of the 
Internal Revenue Code of 1986, as redesignated by subsection (b)(1), is 
amended to read as follows:
    ``(a) Allowance of Credit.--
            ``(1) In general.--In the case of an eligible individual, 
        there shall be allowed as a credit against the tax imposed by 
        this subtitle for the taxable year an amount equal to the 
        applicable percentage of so much of the qualified retirement 
        savings contributions of the eligible individual for the 
        taxable year as do not exceed the contribution limit.
            ``(2) Contribution limit.--For purposes of paragraph (1)--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, the contribution limit is $500 ($1,500 
                for taxable years beginning after 2021).
                    ``(B) Annual increases to reach $1,500.--In the 
                case of taxable years beginning in a calendar year 
                after 2011 and before 2022, the contribution limit 
                shall be the sum of--
                            ``(i) the contribution limit for taxable 
                        years beginning in the preceding calendar year 
                        (as increased under this subparagraph), and
                            ``(ii) $100.
                    ``(C) Inflation adjustment.--In the case of any 
                taxable year beginning in a calendar year after 2021, 
                the $1,500 amount in subparagraph (A) 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 2020' 
                        for `calendar year 1992' in subparagraph (B) 
                        thereof.
                Any increase determined under the preceding sentence 
                shall be rounded to the nearest multiple of $50.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2010.
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