Sec. 1209. Repeal of exclusion for education assistance programs
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Part III of subchapter B of chapter 1 is amended by striking section 127 (and by striking the item relating to such section in the table of sections for such part). Section 125(f)(1) is amended by striking 127, . Section 132(j)(8) is amended by striking which are not excludable from gross income under section 127 . Section 137(c) is amended to read as follows: For purposes of this section, an adoption assistance program is a separate written plan of an employer for the exclusive benefit of such employer’s employees under which the employer provides such employees with adoption assistance.
Except as provided in paragraph (6), such program must meet the requirements of paragraphs (2), (3), and (4). The program shall benefit employees who qualify under a classification set up by the employer and found by the Secretary not to be discriminatory in favor of employees who are highly compensated employees (within the meaning of section 414(q)) or their dependents. For purposes of this paragraph, there shall be excluded from consideration employees not included in the program who are included in a unit of employees covered by an agreement which the Secretary of Labor finds to be a collective bargaining agreement between employee representatives and one or more employers, if there is evidence that adoption assistance benefits were the subject of good faith bargaining between such employee representatives and such employer or employers.
Not more than 5 percent of the amounts paid or incurred by the employer for adoption assistance during the year may be provided for the class of individuals who are shareholders or owners (or their spouses or dependents), each of whom (on any day of the year) owns more than 5 percent of the stock or of the capital or profits interest in the employer. Reasonable notification of the availability and terms of the program must be provided to eligible employees. A program referred to in paragraph
(1)is not required to be funded. An adoption reimbursement program operated under section 1052 of title 10, United States Code (relating to armed forces) or section 514 of title 14, United States Code (relating to members of the Coast Guard) shall be treated as an adoption assistance program for purposes of this section. . Section 414(n)(3)(C) is amended by striking 127, . Section 414(t)(2) is amended by striking 127, . Section 3121(a)(18) is amended by striking 127, . Section 209(a)(15) of the Social Security Act is amended by striking 127 or . Section 3231(e) is amended by striking paragraph (6). Section 3306(b)(13) is amended by striking 127, . Section 3401(a)(18) is amended by striking 127, . Section 6039D(d)(1) is amended by striking 127, . The amendments made by this section shall apply to amounts paid or incurred after December 31, 2014.