Section 1 Short title
This Act may be cited as the “Upward Mobility Enhancement Act”.
Upward Mobility Enhancement Act
A BILL
To amend the Internal Revenue Code of 1986 to increase the exclusion for educational assistance programs.
Sec. 2 Increase in exclusion for educational assistance programs
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, in the case of assistance for education below the graduate level.
“(B) Inflation adjustment—In the case of any calendar year after 2017, the dollar 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 2016” for “calendar year 1992” in subparagraph (B) thereof.”
Effective date— The amendment made by this section shall apply to taxable years beginning after December 31, 2016.