To amend the Internal Revenue Code of 1986 to restore and make permanent the exclusion from gross income for amounts received under qualified group legal services plans and to increase the maximum amount of the exclusion.

February 27, 2003

Mr. CAMP (for himself, Mr. LEVIN, Mr. ROGERS of Michigan, Mr. MATSUI, Mr. RYAN of Wisconsin, Mr. RANGEL, Ms. JACKSON-LEE of Texas, Mr. DELAHUNT, Mr. WYNN, Mr. HINCHEY, Mr. MCNULTY, and Mr. EHLERS) introduced the following bill; which was referred to the Committee on Ways and Means

To amend the Internal Revenue Code of 1986 to restore and make permanent the exclusion from gross income for amounts received under qualified group legal services plans and to increase the maximum amount of the exclusion.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. EXCLUSION FOR AMOUNTS RECEIVED UNDER QUALIFIED GROUP LEGAL SERVICES PLANS RESTORED AND MADE PERMANENT.

(a) IN GENERAL- Subsection (e) of section 120 of the Internal Revenue Code of 1986 is amended to read as follows:

`(e) APPLICATION OF SECTION- This section and section 501(c)(20) shall apply to taxable years beginning-

`(1) after December 31, 1976, and before July 1, 1992, and

`(2) after December 31, 2003.'

(b) INCREASE IN MAXIMUM EXCLUSION- The last sentence of section 120(a) of such Code is amended by striking `$70' and inserting `$150'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2003.

END