Retirement Savings for Working Americans Act - Amends the Internal Revenue Code to make the tax credit for certain retirement savings contributions permanent and refundable. Adjusts the phaseout range to expand eligibility for the tax credit for taxpayers at certain adjusted gross income levels.
[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1305 Introduced in House (IH)]
109th CONGRESS
1st Session
H. R. 1305
To amend the Internal Revenue Code of 1986 to make permanent and
refundable, and to expand, the saver's credit.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 15, 2005
Mr. Emanuel (for himself, Mr. Becerra, Mr. Larson of Connecticut, Mr.
McDermott, Mr. Meeks of New York, and Mr. Abercrombie) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to make permanent and
refundable, and to expand, the saver's credit.
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 ``Retirement Savings for Working
Americans Act''.
SEC. 2. EXPANDED, PERMANENT, AND REFUNDABLE SAVER'S CREDIT.
(a) Credit Made Refundable.--The Internal Revenue Code of 1986 is
amended by redesignating section 36 as section 37, by redesignating
section 25B as section 36, and by moving section 36 (as so
redesignated) from subpart A of part IV of subchapter A of chapter 1
(relating to nonrefundable personal credits) to immediately after
section 35 in subpart C of such part (relating to refundable credits).
(b) Expansion of Phaseout Ranges.--Subsection (b) of section 36 of
such Code (as redesignated under this section) 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.--With respect to any taxpayer for any
taxable year, the applicable percentage shall be reduced (but
not below zero) by the percentage which bears the same ratio to
50 percent 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 under this paragraph is not a multiple of 1
percent, such reduction shall be rounded to the nearest
multiple of 1 percent.
``(3) Applicable dollar amount; phaseout range.--The
applicable dollar amount and the phaseout range shall be
determined in accordance with the following table:
The phaseout
``In the case of: The applicable dollar amount is: range is:
A joint return.................................. $60,000 $10,000
A head of a household........................... $45,000 $7,500
Any other case.................................. $30,000 $5,000''.
(c) Credit Made Permanent.--Section 36 of such Code (as
redesignated under this section) is amended by striking subsection (h).
(d) Conforming Amendments.--
(1) Section 24(b)(3)(B) of such Code is amended by striking
``and 25B''.
(2) Section 25(e)(1)(C) of such Code is amended by striking
``25B,''.
(3) Sections 26(a)(1), 904(i), and 1400C(d) of such Code
are each amended by striking ``24, and 25B'' and inserting
``and 24''.
(4) The heading of section 36 of such Code (as redesignated
under this section) is amended by striking ``elective'' and
inserting ``saver's credit: elective''.
(5) Section 36 of such Code (as so redesignated) is amended
by striking subsection (g).
(6) 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.
(7) The table of sections for subpart C of such part is
amended by redesignating the item relating to section 36 as an
item relating to section 37 and by inserting before such item
the following new item:
``Sec. 36. Saver's credit: elective deferrals and IRA contributions by
certain individuals.''.
(8) Section 1324(b)(2) of title 31, United States Code, is
amended by inserting ``or 36'' after ``section 35''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2005.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
Sponsor introductory remarks on measure. (CR H1962-1963)
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