1. Short title
This Act may be cited as the “American Workforce Development Act”.
American Workforce Development Act
A BILL
To amend the Internal Revenue Code of 1986 to increase the exclusion for educational assistance programs.
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 by striking “$5,250” each place it appears in the text and the heading and inserting “$11,500”.
Inflation adjustment— Section 127(c) of such Code is amended by adding at the end the following new paragraph:
“(8) Inflation adjustment
“(A) In general—In the case of any calendar year after 2019, each dollar amount in subsection (a)(2) 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 2017” for “calendar year 2016” in subparagraph (A)(ii) thereof.
“(B) Rounding—If any increase determined under subparagraph (A) is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50.”
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2019.