EMPLOYER-PROVIDED EDUCATIONAL ASSISTANCE PROGRAMS.

SEC. 1202. EMPLOYER-PROVIDED EDUCATIONAL ASSISTANCE PROGRAMS. (a) Extension.— Subsection (d) of section 127 (relating to educational assistance programs) is amended by striking “December 31, 1994.” and inserting “May 31, 1997. In the case of any taxable year beginning in 1997, only expenses paid with respect to courses110 STAT. 1773 beginning before July 1, 1997, shall be taken into account in determining the amount excluded under this section.”. (b) Limitation To Education Below Graduate Level.— The last sentence of section 127(c)(1) is amended by inserting before the period the following: “, and such term also does not include any payment for, or the provision of any benefits with respect to, any graduate level course of a kind normally taken by an individual pursuing a program leading to a law, business, medical, or other advanced academic or professional degree”. (c) Effective Dates.— (1) Extension.— The amendment made by subsection (a) shall apply to taxable years beginning after December 31, 1994. (2) Graduate education.— The amendment made by subsection (b) shall apply with respect to expenses relating to courses beginning after June 30, 1996. (3) Expedited procedures.— The Secretary of the Treasury shall establish expedited procedures for the refund of any overpayment of taxes imposed by the Internal Revenue Code of 1986 which is attributable to amounts excluded from gross income during 1995 or 1996 under section 127 of such Code, including procedures waiving the requirement that an employer obtain an employee’s signature where the employer demonstrates to the satisfaction of the Secretary that any refund collected by the employer on behalf of the employee will be paid to the employee.