S.Amdt. 3082

SA 3082. Mr. BURR (for himself and Mr. Roberts) submitted an
amendment intended to be proposed to amendment SA 2786 proposed by Mr.
Reid (for himself, Mr. Baucus, Mr. Dodd, and Mr. Harkin) to the bill
H.R. 3590, to amend the Internal Revenue Code of 1986 to modify the
first-time homebuyers credit in the case of members of the Armed Forces
and certain other Federal employees, and for other purposes; which was
ordered to lie on the table; as follows:

Beginning on page 1999, strike lines 1 through 20 and
insert the following:

SEC. 9005. LIMITATION ON HEALTH FLEXIBLE SPENDING
ARRANGEMENTS UNDER CAFETERIA PLANS.

(a) In General.--Section 125 of the Internal Revenue Code
of 1986 is amended--
(1) by redesignating subsections (i) and (j) as subsections
(k) and (l), respectively, and
(2) by inserting after subsection (h) the following new
subsection:
``(i) Limitation on Health Flexible Spending
Arrangements.--
``(1) In general.--For purposes of this section, if a
benefit is provided under a cafeteria plan through employer
contributions to a health flexible spending arrangement, such
benefit shall not be treated as a qualified benefit unless
the cafeteria plan provides that an employee may not elect
for any taxable year to have salary reduction contributions
in excess of $5,000 made to such arrangement.
``(2) Adjustment for medical inflation.--In the case of any
taxable year beginning after December 31, 2010, the dollar
amount in paragraph (1) shall be increased by the medical
care cost adjustment of such amount (within the meaning of
section 213(d)(10)(B)(ii)) for the calendar year in which
such taxable year begins. If any increase determined under
the preceding sentence is not a multiple of $50, such
increase shall be rounded to the nearest multiple of $50.''.
(b) Modification of Reimbursement Rules.--Section 106 of
the Internal Revenue Code of 1986, as amended by section
9003, is amended by striking subsection (f).
(c) Effective Dates.--
(1) In general.--The amendments made by subsection (a)
shall apply to taxable years beginning after December 31,
2009.
(2) Reimbursement.--The amendment made by subsection (b)
shall apply in the same manner as the amendment made by
section 9003(c).

[[Page S12820]]

SEC. 9006. LIMITATION ON DEPENDENT CARE FLEXIBLE SPENDING
ARRANGEMENTS UNDER CAFETERIA PLANS.

(a) In General.--Section 125 of the Internal Revenue Code
of 1986, as amended by section 9005, is amended by inserting
after subsection (i) the following new subsection:
``(j) Indexing of Limitation on Dependent Care Flexible
Spending Arrangements.--For purposes of this section, if a
benefit is provided under a cafeteria plan through employer
contributions to a dependent care flexible spending
arrangement in a taxable year beginning after calendar year
2010, the dollar amount of the limitation under section
129(2)(A) which applies to such flexible spending arrangement
shall be increased by an amount equal to--
``(1) such dollar amount, multiplied by
``(2) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year in which such taxable
year begins, determined by substituting `calendar year 2009'
for `calendar year 1992' in subparagraph (B) thereof.

If any increase determined under the preceding sentence is
not a multiple of $50, such increase shall be rounded to the
nearest multiple of $50.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years beginning after December 31,
2009.
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