117 S4265 IS: Inflation-Adjusted Education Investment Act U.S. Senate 2022-05-19 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II117th CONGRESS2d SessionS. 4265IN THE SENATE OF THE UNITED STATESMay 19 (legislative day, May 17), 2022Mr. Kennedy introduced the following bill; which was read twice and referred to the Committee on FinanceA BILLTo amend the Internal Revenue Code of 1986 to increase and provide an inflation adjustment for the limitation on distributions from qualified tuition programs that may be used for elementary and secondary tuition.

1.

Short title

This Act may be cited as the Inflation-Adjusted Education Investment Act.

2.

Increase on limitation on expenses used for elementary and secondary tuition

(a)

In general

The last sentence of section 529(e)(3)(A) of the Internal Revenue Code of 1986 is amended by striking $10,000 and inserting $12,000.(b)

Inflation adjustment

Section 529(e)(3) of the Internal Revenue Code of 1986 is amended by adding at the end the following new subparagraph:(C)

Inflation adjustment

(i)

In general

In the case of any taxable year beginning in a calendar year after 2022, the $12,000 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 2021 for calendar year 2016 in subparagraph (A)(ii) thereof.(ii)

Rounding

Any increase determined under clause (i) shall be rounded to the nearest multiple of $500..(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2021.