S 441 — American Opportunity Accounts Act

Summary

American Opportunity Accounts Act This bill establishes tax-exempt American Opportunity Accounts to provide children at birth with a $1,000 savings account with annual contributions up to $2,000 depending on family income. The accounts are available to children at age 18 for specified purposes, including educational expenses, home ownership, and investment that provides long-term returns.

Bill Text

• Introduced Introduced in Senate Current html February 15, 2023

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The bill establishes American opportunity accounts and the American Opportunity Fund, creating a new framework for contributions and regulations related to these accounts.

• Section 6103

  (23) Disclosure of return information to carry out eligibility requirements for certain programs.-- (A) In general.--The Secretary shall disclose to officers and employees of the Department of the Treasury or the American Opportunity Fund Board return information of any taxpayer whose income is relevant in determining any annual contribution to an American Opportunity Account under section 3 of the American Opportunity Accounts Act. Such return information shall be limited to-- (i) taxpayer identity information with respect to such taxpayer, (ii) the filing status of such taxpayer, (iii) the number of individuals for whom a deduction is allowed under section 151 with respect to the taxpayer (including the taxpayer and the taxpayer's spouse), (iv) the modified adjusted gross income (as defined in section 36B) of such taxpayer, of any spouse of such taxpayer who filed a separate return, and of each of the other individuals included under clause (iii) who are required to file a return of tax imposed by chapter 1 for the taxable year, (v) such other information as is prescribed by the Secretary by regulation as might indicate whether the taxpayer is eligible for such an annual contribution (and the amount thereof), and (vi) the taxable year with respect to which the preceding information relates or, if applicable, the fact that such information is not available. (B) Restriction on use of disclosed information.--Return information disclosed under subparagraph (A) may be used by officers and employees of the Department of the Treasury or the American Opportunity Fund Board for the purposes of, and to the extent necessary in establishing eligibility for, and verifying the appropriate amount of, any annual contribution described in subparagraph (A).

  This provision allows the Secretary to share tax return information to determine eligibility for contributions to American Opportunity Accounts.

• Section 6103(p)

  or (22) → (22), or (23)

  This change adds a reference to the new disclosure provision, allowing for proper record-keeping related to disclosures.

• Section 3

  There is established in the Treasury of the United States a fund to be known as the ``American Opportunity Fund''.

  This creates the new American Opportunity Fund within the U.S. Treasury.

• Section 3(c)

  The sums in the American Opportunity Fund are appropriated and shall remain available without fiscal year limitation-- (A) to make contributions to AO accounts; (B) to invest under section 6; (C) to make distributions in accordance with this title; (D) to pay the administrative expenses of carrying out this title; and (E) to purchase insurance as provided in section 8(c)(2).

  This specifies the uses of funds within the American Opportunity Fund.

• Section 4

  The Executive Director shall establish in the American Opportunity Fund an account (to be known as an ``American Opportunity account'' or an ``AO account'') for each eligible individual certified under subsection (b).

  This mandates the establishment of AO accounts for eligible individuals.

• Section 3(d)

  The Secretary shall make transfers from the general fund of the Treasury to the American Opportunity Fund as follows: (1) Initial contribution for eligible individuals born after December 31, 2023.--Upon receipt of a certification under section 4(b)(2) with respect to an individual born after December 31, 2023, the Secretary shall transfer $1,000 to the AO account of the individual.

  This establishes an initial funding mechanism for AO accounts for certain individuals.

• Section 3(d)(2)(B)

  Each year which occurs after the year in which an AO account is established for an eligible individual and before the year the eligible individual attains the age of 18, the Secretary shall transfer the annual contribution amount to the AO account of the individual.

  This requires annual contributions to be made to the AO accounts until the individual turns 18.

Action History

1. February 15, 2023

   Introduced in Senate

2. February 15, 2023

   Read twice and referred to the Committee on Finance.

Sponsors

• Cory A. Booker · Primary

Subjects