Page:United States Statutes at Large Volume 100 Part 3.djvu/304

 100 STAT. 2112

PUBLIC LAW 99-514—OCT. 22, 1986

';. ' r *i G,

"(C) SAFETY ACHIEVEMENT AWARDS.—An item provided by an employer to an employee shall not be treated as having been provided for safety achievement if— "(i) during the taxable year, employee achievement awards (other than awards excludable under section 132(e)(1)) for safety achievement have previously been awarded by the employer to more than 10 percent of the employees of the employer (excluding employees described in clause (ii)), or "(ii) such item is awarded to a manager, administrator, clerical employee, or other professional employee.".

(e) TREATMENT FOR PURPOSES OF EMPLOYMENT TAXES.—Each of the

following provisions are amended by striking out "117 or" and inserting in lieu thereof "74(c), 117, or": (1) Section 3121(a)(20). (2) Section 3231(e)(5). (3) Section 3306(b)(16). (4) Section 3401(a)(20). (5) Section 209(s) of the Social Security Act. SEC. 123. SCHOLARSHIPS.

(a) IN GENERAL.—Section 117 (relating to scholarship and fellowship grants) is amended to read as follows: "SEC. 117. QUALIFIED SCHOLARSHIPS.

"(a) GENERAL RULE.—Gross income does not include any amount received as a qualified scholarship by an individual who is a candidate for a degree at an educational organization described in section 170(b)(l)(A)(ii). "(b) QUALIFIED SCHOLARSHIP.—For purposes of this section— "(1) IN GENERAL.—The term 'qualified scholarship' means any amount received by an individual as a scholarship or fellowship grant to the extent the individual establishes that, in accord• ance with the conditions of the grant, such amount was used for qualified tuition and related expenses. "(2) QUALIFIED TUITION AND RELATED EXPENSES.—For purposes of paragraph (1), the term 'qualified tuition and related expenses' means— "(A) tuition and fees required for the enrollment or attendance of a student at an educational organization described in section 170(b)(l)(A)(ii), and "(B) fees, books, supplies, and equipment required for courses of instruction at such an educational organization. "(c) LIMITATION.—Subsections (a) and (d) shall not apply to that portion of any amount received which represents payment for teaching, research, or other services by the student required as a condition for receiving the qualified scholarship or qualified tuition reduction. "(d) QUALIFIED TUITION REDUCTION.—

,,

"(1) IN GENERAL.—Gross income shall not include any qualified tuition reduction. "(2) QUALIFIED TUITION REDUCTION.—For purposes of this subsection, the term 'qualified tuition reduction' means the amount of any reduction in tuition provided to an employee of an organization described in section 170(b)(l)(A)(ii) for the edu-

�