II 111th CONGRESS 2d Session S. 3090 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.

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 ½ 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.