Page:United States Statutes at Large Volume 102 Part 4.djvu/720

 102 STAT. 3690

PUBLIC LAW 100-647—NOV. 10, 1988

education of an individual shall be reduced (before the application of subsection (h)) by the sum of the amounts received with respect to such individual for the taxable year as— "(A) a qualified scholarship which under section 117 is not includable in gross income, "(B) an educational assistance allowance under chapter 30, 31, 32, 34, or 35 of title 38, United States Code, or "(C) a pa5anent (other than a gift, bequest, devise, or inheritance within the meaning of section 102(a)) for educational expenses, or attributable to attendance at an eligible educational institution, which is exempt from income taxation by any law of the United States. "(2) No EXCLUSION FOR MARRIED INDIVIDUALS FILING SEPARATE RETURNS.—If the taxpayer is a married individual (within the meaning of section 7703), this section shall apply only if the taxpayer and his spouse file a joint return for the taxable year. "(3) REGULATIONS.—The Secretary may prescribe such regulations as may be necessary or appropriate to carry out this section, including regulations requiring record keeping and information reporting." 26 USC 135 note. (b) PROMOTION OF PUBLIC AWARENESS OF PROGRAM.—The Secretary of the Treasury or his delegate shall take such actions as may be necessary to make the general public aware of the program established by this section. (c) TECHNICAL AMENDMENTS.—

(1) Subparagraph (A) of section 86(b)(2) of the 1986 Code is amended by inserting "135," before "911". (2) Clause (i) of section 219(g)(3)(A) of the 1986 Code is amended by striking "section 911" and inserting "sections 135 and 911". (3) Subparagraph (D) of section 469(i)(3) of the 1986 Code is amended by redesignating clauses (ii) and (iii) as clauses (iii) and (iv), respectively, and by inserting after clause (i) the following new clause: "(ii) the amount excludable from gross income under section 135,". (4) The table of sections for part III of subchapter B of chapter 1 of the 1986 Code is amended by striking the last item and inserting the following new items: "Sec. 135. Income from United States savings bonds used to pay higher education tuition and fees. "Sec. 136. Cross references to other Acts."

26 USC 86 note.

(d) EFFECTIVE DATE.—The amendments made by this section shall apply to taxable years beginning after December 31, 1989. 26 USC 135 note. (e) PARENTAL ASSISTANCE WiTH TuiTiON STAMP STUDY.—The Secretary of the Treasury or his delegate, after consultation with the Secretary of Education or his delegate, shall conduct a study of the feasibility of using stamps or similar programs to encourage and facilitate savings by parents towards the purch£use of Series EE bonds eligible for the exclusion provided under the amendments made by this section. Not later than December 31, 1989, the Secretary of the Treasury or his delegate shall submit the results of such study, together with any recommendations deemed appropriate, to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate.

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