Sec. 11. Tax provisions
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Subchapter F of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new part: Sec. 530A. USAccount Fund and USAccounts. The USAccount Fund and USAccounts shall be exempt from taxation under this subtitle. Notwithstanding the preceding sentence, a USAccount shall be subject to the taxes imposed by section 511 (relating to imposition of tax on unrelated business income of charitable organizations). For purposes of this section, the terms USAccount Fund and USAccount have the meanings given such terms by the USAccounts:
Investing in America’s Future Act of 2014 . Any amount paid or distributed out of a USAccount— which meets the distribution rules of the USAccounts: Investing in America’s Future Act of 2014 shall not be includible in gross income, and which does not meet the distribution rules of section 4(d) of such Act shall be included in the gross income of the account holder. . Section 4973 of the Internal Revenue Code of 1986 is amended— by striking or at the end of subsection (a)(4), by inserting or at the end of subsection (a)(5), and by inserting after subsection (a)(5) the following new paragraph: a USAccount subject to management under section 4(g) of the USAccounts:
Investing in America’s Future Act of 2014 , , and by adding at the end the following new subsection: For purposes of this section, in the case of a USAccount subject to management under section 4(g) of the USAccounts: Investing in America’s Future Act of 2014 , the term excess contributions means the sum of— the aggregate amount contributed for the taxable year to the account, and the amount determined under this subsection for the preceding taxable year, reduced by the sum of— the distributions out of the account, and the excess (if any) of— the maximum amount allowable as a contribution under section 4(c)(3)(C) of the USAccounts:
Investing in America’s Future Act of 2014 for the taxable year, over the amount contributed to the account for the taxable year. . Section 4975 of the Internal Revenue Code of 1986 is amended— by adding at the end of subsection
(c)the following new paragraph: An individual for whose benefit a USAccount subject to management under section 4(g) of the USAccounts: Investing in America’s Future Act of 2014 shall be exempt from the tax imposed by this section with respect to any transaction concerning such account (which would otherwise be taxable under this section) if, with respect to such transaction, the account ceases to be a USAccount by reason of the application of section 530A(c)(2) to such account. , and in subsection (e)(1) by redesignating subparagraph
(G)as subparagraph
(H)and by inserting after subparagraph
(F)the following new subparagraph: a USAccount subject to management under section 4(g) of the USAccounts: Investing in America’s Future Act of 2014 , . Section 24 of the Internal Revenue Code of 1986 is amended by adding at the end the following: For purposes of this section— The amount allowed as a credit under subsection
(a)shall be increased by the USAccount contribution amount. SA ccount contribution amount The term USAccount contribution amount means with respect to each qualifying child the amount contributed by the taxpayer to the USAccount of the taxpayer for the taxable year which is taken into account under section 4(d)(2)(B)(i) of the USAccounts: Investing in America’s Future Act of 2014 . The amount under paragraph
(2)shall be reduced (but not below zero) under subsection (b)(1) in the same manner as the credit under subsection
(a)is reduced under subsection (b)(1). The aggregate credits allowed to the taxpayer under subpart C shall be increased by the amount of the increase under this subsection and such amount— shall not be treated as a credit allowed under this subpart, and shall reduce the amount of credit otherwise allowable under subsection
(a)without regard to section 26(a). . The amendment made by subsection
(a)shall apply to taxable years beginning after December 31, 2014.