ABLE MATCH (Making Able a Tool to Combat Hardship) Act

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9801 Introduced in House (IH)]

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119th CONGRESS
  2d Session
                                H. R. 9801

To amend the Internal Revenue Code of 1986 to provide matching payments
 for ABLE account contributions by certain individuals, and for other
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 21, 2026

  Mrs. Dingell (for herself and Mr. Schmidt) introduced the following
      bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL

To amend the Internal Revenue Code of 1986 to provide matching payments
 for ABLE account contributions by certain individuals, and for other
                               purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``ABLE MATCH (Making Able a Tool to
Combat Hardship) Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) People with disabilities are more than twice as likely
        to live in poverty than people without disabilities.
            (2) Households containing an adult with a disability that
        limits their ability to work requires, on average, 28 percent
        more income to obtain the same standard of living as similar
        households without a member with a disability.
            (3) The average income of households that include any
        working-age people with disabilities is $30,200 less than the
        average household income of people without disabilities.
            (4) The Stephen Beck, Jr., Achieving a Better Life
        Experience Act of 2014 provided for qualified ABLE programs,
        which provided eligible people with disabilities the
        opportunity to open tax-advantaged savings accounts without the
        risk of losing the benefits they need to participate in
        society.
            (5) As of September 2025, there were 223,182 ABLE accounts
        open in the United States with an average balance of $12,863.

SEC. 3. PURPOSES.

    The purposes of this Act are--
            (1) to encourage and assist individuals with disabilities
        with fewer resources to save using ABLE accounts;
            (2) to increase uptake and continued utilization of ABLE
        accounts by people with disabilities; and
            (3) to provide for a Federal match for new and existing
        ABLE accounts held by individuals with an annual income less
        than 200 percent of the Federal poverty limit.

SEC. 4. MATCHING PAYMENTS FOR ABLE ACCOUNT CONTRIBUTIONS BY CERTAIN
              INDIVIDUALS.

    (a) In General.--Subchapter B of chapter 65 of the Internal Revenue
Code of 1986 is amended by inserting after section 6433 the following
new section:

``SEC. 6433A. MATCHING PAYMENTS FOR ABLE ACCOUNT CONTRIBUTIONS BY
              CERTAIN INDIVIDUALS.

    ``(a) In General.--
            ``(1) Allowance of credit.--Any individual who is the
        designated beneficiary of an ABLE account as of the last day of
        the taxable year and who makes qualified ABLE account
        contributions for such taxable year shall be allowed a credit
        for such taxable year in an amount equal to the applicable
        percentage of so much of the qualified ABLE account
        contributions made by such individual for the taxable year as
        does not exceed $2,000.
            ``(2) Payment of credit.--The credit under this section
        shall be--
                    ``(A) treated as allowed by subpart C of part IV of
                subchapter A of chapter 1, and
                    ``(B) paid by the Secretary as a contribution (as
                soon as practicable after the individual has filed a
                tax return making a claim for such credit for the
                taxable year) to the ABLE account of the individual.
    ``(b) Overall Limitation.--The amount of the credit allowed under
this section with respect to any individual shall not exceed the excess
of--
            ``(1) the amount in effect under section 529A(b)(2)(B) for
        the taxable year, over
            ``(2) the amount of contributions made to the ABLE account
        of the individual for such taxable year.
    ``(c) Applicable Percentage.--For purposes of this section--
            ``(1) In general.--Except as provided in paragraph (2), the
        applicable percentage is 100 percent.
            ``(2) Phaseout.--The percentage under paragraph (1) shall
        be reduced (but not below zero) by the number of percentage
        points which bears the same ratio to 50 percentage points as--
                    ``(A) the excess of--
                            ``(i) the taxpayer's modified adjusted
                        gross income for the taxable year, over
                            ``(ii) the applicable dollar amount, bears
                        to
                    ``(B) $20,000.
        If any reduction determined under this paragraph is not a whole
        percentage point, such reduction shall be rounded to the next
        lowest whole percentage point.
            ``(3) Applicable dollar amount.--The applicable dollar
        amount is--
                    ``(A) in the case of a joint return, $56,000,
                    ``(B) in the case of a head of household (as
                defined in section 2(b)), \3/4\ of the amount
                applicable under subparagraph (A), and
                    ``(C) in any other case, \1/2\ of the amount
                applicable under subparagraph (A).
    ``(d) Qualified ABLE Account Contributions.--For purposes of this
section--
            ``(1) In general.--The term `qualified ABLE account
        contributions' means, with respect to any taxable year, the
        amount of contributions made by the individual to the ABLE
        account of which such individual is the designated beneficiary.
        Such term shall not include any amount attributable to a
        payment under subsection (a)(2).
            ``(2) Reduction for certain distributions.--
                    ``(A) In general.--The qualified ABLE account
                contributions determined under paragraph (1) for a
                taxable year shall be reduced (but not below zero) by
                the aggregate distributions received by the individual
                during the testing period from the ABLE account.
                    ``(B) Testing period.--For purposes of subparagraph
                (A), the testing period, with respect to a taxable
                year, is the period which includes--
                            ``(i) such taxable year,
                            ``(ii) the 2 preceding taxable years, and
                            ``(iii) the period after such taxable year
                        and before the due date (including extensions)
                        for filing the return of tax for such taxable
                        year.
                    ``(C) Excepted distributions.--There shall not be
                taken into account under subparagraph (A) the amount of
                distributions under a qualified ABLE program (within
                the meaning of section 529A) that is equal to amounts
                not included in gross income with respect to such
                distributions under section 529A(c)(1)(B) (relating to
                distributions for qualified disability expenses).
                    ``(D) Treatment of distributions received by spouse
                of individual.--For purposes of determining
                distributions received by an individual under
                subparagraph (A) for any taxable year, any distribution
                received by the spouse of such individual shall be
                treated as received by such individual if such
                individual and spouse file a joint return for such
                taxable year and for the taxable year during which the
                spouse receives the distribution.
    ``(e) ABLE Account.--For purposes of this section, the term `ABLE
account' has the meaning given such term under section 529A.
    ``(f) Other Definitions and Special Rules.--
            ``(1) Modified adjusted gross income.--For purposes of this
        section, the term `modified adjusted gross income' means
        adjusted gross income determined without regard to sections
        911, 931, and 933.
            ``(2) Erroneous credits.--
                    ``(A) In general.--If any contribution is
                erroneously paid under subsection (a)(2), including a
                payment that is not made to an ABLE account, the amount
                of such erroneous payment shall be treated as an
                underpayment of tax (other than for purposes of part II
                of subchapter A of chapter 68) for the taxable year in
                which the Secretary determines the payment is
                erroneous.
                    ``(B) Distribution of erroneous credits.--In the
                case of a contribution to which subparagraph (A)
                applies, section 72 shall not apply to the distribution
                of such contribution (and any income attributable
                thereto) if such distribution is received not later
                than the day prescribed by law (including extensions of
                time) for filing the individual's return for such
                taxable year.
            ``(3) Exception from reduction or offset.--Any payment made
        to any individual under this section shall not be--
                    ``(A) subject to reduction or offset pursuant to
                subsection (c), (d), (e), or (f) of section 6402 or any
                similar authority permitting offset, or
                    ``(B) reduced or offset by other assessed Federal
                taxes that would otherwise be subject to levy or
                collection.
    ``(g) Inflation Adjustments.--
            ``(1) In general.--In the case of any taxable year
        beginning in a calendar year after 2027, the $56,000 amount in
        subsection (c)(3)(A) shall be increased by an amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined
                under section 1(f)(3) for the calendar year in which
                the taxable year begins, determined by substituting
                `calendar year 2026' for `calendar year 2016' in
                subparagraph (A)(ii) thereof.
            ``(2) Rounding.--Any increase determined under paragraph
        (1) shall be rounded to the nearest multiple of $1,000.''.
    (b) Treatment of Certain Possessions.--
            (1) Payments to possessions with mirror code tax systems.--
        The Secretary of the Treasury shall pay to each possession of
        the United States which has a mirror code tax system amounts
        equal to the loss (if any) to that possession by reason of the
        amendments made by this section. Such amounts shall be
        determined by the Secretary of the Treasury based on
        information provided by the government of the respective
        possession.
            (2) Payments to other possessions.--The Secretary of the
        Treasury shall pay to each possession of the United States
        which does not have a mirror code tax system amounts estimated
        by the Secretary of the Treasury as being equal to the
        aggregate benefits (if any) that would have been provided to
        residents of such possession by reason of the amendments made
        by this section if a mirror code tax system had been in effect
        in such possession. The preceding sentence shall not apply
        unless the respective possession has a plan, which has been
        approved by the Secretary of the Treasury, under which such
        possession will promptly distribute such payments to its
        residents.
            (3) Coordination with credit allowed against united states
        income taxes.--No credit shall be allowed against United States
        income taxes under section 6433A of the Internal Revenue Code
        of 1986 (as added by this section) to any person--
                    (A) to whom a credit is allowed against taxes
                imposed by the possession by reason of the amendments
                made by this section, or
                    (B) who is eligible for a payment under a plan
                described in paragraph (2).
            (4) Mirror code tax system.--For purposes of this
        subsection, the term ``mirror code tax system'' means, with
        respect to any possession of the United States, the income tax
        system of such possession if the income tax liability of the
        residents of such possession under such system is determined by
        reference to the income tax laws of the United States as if
        such possession were the United States.
            (5) Treatment of payments.--For purposes of section 1324 of
        title 31, United States Code, payments under this subsection
        shall be treated in the same manner as a refund due from a
        credit provision referred to in subsection (b)(2) of such
        section.
    (c) Deficiencies.--Section 6211(b)(4) of the Internal Revenue Code
of 1986 is amended by striking ``and 6433'' and inserting ``6433, and
6433A''.
    (d) Payment Authority.--Section 1324(b)(2) of title 31, United
States Code, is amended by striking ``or 6433'' and inserting ``6433,
or 6433A''.
    (e) Conforming Amendments.--
            (1) Subpart A of part IV of subchapter A of chapter 1 of
        the Internal Revenue Code of 1986 is amended by striking
        section 25B (and the item related to such section in the table
        of sections for such subpart).
            (2) The table of sections for subchapter B of chapter 65 of
        such Code is amended by inserting after the item relating to
        section 6433 the following new item:

``Sec. 6433A. Matching payments for ABLE account contributions by
                            certain individuals.''.
    (f) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2026.

SEC. 5. DEMOGRAPHIC REPORTING WITH RESPECT TO ABLE ACCOUNTS.

    (a) In General.--Section 529A(d)(1) of the Internal Revenue Code of
1986 is amended by adding at the end the following new sentence: ``In
addition to the information required under the preceding sentence, each
officer or employee having control of the qualified ABLE program of
their designee shall include in reports provided to the Secretary
demographic information (including race, gender, and disability type)
relating to the designated beneficiaries of ABLE accounts under the
program.''.
    (b) Effective Date.--The amendment made by this section shall apply
to reports made after the date of the enactment of this section.

SEC. 6. GRANTS TO PROMOTE USE OF ABLE ACCOUNTS AND THE MATCHING
              CONTRIBUTION CREDIT.

    (a) In General.--The Secretary of the Treasury (or the Secretary's
delegate) may award grants to States to enable States to promote ABLE
accounts (as defined in section 529A(e) of the Internal Revenue Code of
1986) and matching payments for contributions to such accounts (as
provided under section 6433A of such Code, as added by this Act).
    (b) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $5,000,000 for each of fiscal
years 2027 through 2031.
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