[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 5069 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 5069

 To amend the Internal Revenue Code of 1986 to increase the exclusion 
                  for educational assistance programs.


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                   IN THE SENATE OF THE UNITED STATES

                           December 18, 2020

 Ms. Cortez Masto introduced the following bill; which was read twice 
                and referred to the Committee on Finance

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                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to increase the exclusion 
                  for educational assistance 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 ``Upward Mobility Enhancement Act''.

SEC. 2. INCREASE IN EXCLUSION FOR EDUCATIONAL ASSISTANCE PROGRAMS.

    (a) In General.--Paragraph (2) of section 127(a) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(2) Maximum exclusion.--
                    ``(A) In general.--This section shall apply only to 
                the first $11,500 of educational assistance furnished 
                to an individual during a calendar year.
                    ``(B) Inflation adjustment.--In the case of any 
                calendar year after 2021, the $11,500 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 such taxable year begins 
                        by substituting `calendar year 2020' for 
                        `calendar year 2016' in subparagraph (A)(ii) 
                        thereof.
                If any increase determined under this subparagraph is 
                not a multiple of $50, such increase shall be rounded 
                to the next lowest multiple of $50.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2020.
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