EMPLOYER-PROVIDED EDUCATIONAL ASSISTANCE.

SEC. 7101. EMPLOYER-PROVIDED EDUCATIONAL ASSISTANCE. (a) Extension.— (1) In general—Subsection (d) of section 127 (relating to educational assistance programs) is amended by striking “December 31, 1988” and inserting “September 30, 1990”. (2) Special rule.—In the case of any taxable year beginning in 1990, only amounts paid before October 1, 1990, by the employer for educational assistance for the employee shall be taken into account in determining the amount excluded under section 127 of the Internal Revenue Code of 1986 with respect to such employee for such taxable year. (b) Certain Otherwise Taxable Employer-Provided Educational Assistance May Be Excludible as Working Condition 103 STAT. 2305Fringe.—Subsection (h) of section 132 is amended by adding at the end thereof the following new paragraph: “(9) Application of section to otherwise taxable employer-provided educational assistance.—Amounts which would be excludible from gross income under section 127 but for subsection (a)(2) thereof or the last sentence of subsection (c)(1) thereof shall be excluded from gross income under this section if (and only if) such amounts are a working condition fringe.” (c) Effective Date.—The amendments made by this section shall apply to taxable years beginning after December 31, 1988.