Page:United States Statutes at Large Volume 102 Part 4.djvu/673

 PUBLIC LAW 100-647—NOV. 10, 1988

102 STAT. 3643

TITLE IV—EXTENSIONS AND MODIFICATIONS OF EXPIRING TAX PROVISIONS SEC. 4001. EXTENSION AND MODIFICATION OF EXCLUSION EMPLOYER-PROVIDED EDUCATIONAL ASSISTANCE.

FOR

(a) EXTENSION.—Subsection (d) of section 127 of the 1986 Code (relating to educational assistance programs) is amended by striking out "December 31, 1987" and inserting in lieu thereof "December 31, 1988". (b) RESTRICTIONS RELATING TO EDUCATION AT THE GRADUATE LEVEL.—

(1) IN GENERAL.—Paragraph (1) of section 127(c) of the 1986 (Dode is amended by adding at the end thereof the following new sentence: "The term 'educational assistance' also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree." (2) SPECIAL RULE FOR TEACHING AND RESEARCH ASSISTANTS.—

Subsection (d) of section 117 of the 1986 Code is amended by adding at the end thereof the following new paragraph: "(5) SPECIAL RULES FOR TEACHING AND RESEARCH ASSISTANTS.—

In the case of the education of an individual who is a graduate student at an educational organization described in section 170(b)(l)(A)(ii) and who is engaged in teaching or research activities for such organization, paragraph (2) shall be applied as if it did not contain the phrase '(below the graduate level)'." (c) EFFECTIVE DATES.—The amendments made by this section shall 26 USC 117 note. apply to taxable years beginning after December 31, 1987. SEC. 4002. EXTENSION AND MODIFICATION OF EXCLUSION OF AMOUNTS RECEIVED UNDER GROUP LEGAL SERVICES PLANS.

(a) EXTENSION.—Section 120(e) of the 1986 Ckxie is amended by striking out "1987" and inserting in lieu thereof "1988". (b) LIMITATION ON VALUE OF INSURANCE PROTECTION WHICH MAY B E Eb^CLUDED.—

(1) IN GENERAL.—Section 120(a) of the 1986 Code is amended by adding at the end thereof the following new sentence: "No exclusion shall be allowed under this section with respect to an individual for any taxable year to the extent that the value of insurance (whether through an insurer or self-insurance) against legal costs incurred by the individual (or his spouse or dependents) provided under a qusdified group legal services plan exceeds $70." (2) CONFORMING AMENDMENT.—Subparagraph (A) of section

125(e)(2) of the 1986 Code is amended by inserting "or any insurance under a qualified group legal services plan the value of which is so includable only because it exceeds the limitation of section 120(a)" after "section 79". (c) EFFECTIVE DATE.—The amendments made by this section shall 26 USC 120 note. apply to taxable years ending after December 31, 1987. SEC. 4003. CARRYOVER OF POST-1987 LOW-INCOME HOUSING CREDIT DOLLAR AMOUNTS PERMITTED.

(a) IN GENERAL.—Section 42(h)(l) of the 1986 Code (relating to housing credit dollar amount may not be carried over, etc.), as

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