connection with a qualified payroll deduction contribution program established by the employer. (2) Qualified payroll deduction contribution program For purposes of this subsection, the term qualified payroll deduction contribution program means a program established by an employer— (A) under which employees may elect to make contributions to accounts described in paragraph (1)(A) which reduce the amount of wages received directly by such employee by the amount of such contribution, and (B) which is made available on substantially the same terms to each member of a group of employees which is defined under a reasonable classification set up by the employer which does not discriminate in favor of highly compensated employees (as defined in section 414(q)). (3) Limitation on exclusion The amount of qualified tuition program contributions which may be excluded from gross income under subsection (a)(9) with respect to any employee shall not exceed $500 in any calendar year. (4) Inflation adjustment (A) In general In the case of any taxable year beginning in a calendar year after 2019, the $500 amount contained in paragraph (3) shall be increased by an amount equal to— (i) such dollar amount, multiplied by (ii) 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 2018 for calendar year 2016 in subparagraph (A)(ii) thereof. (B) Rounding Any increase determined under subparagraph (A) shall be rounded to the nearest multiple of $25. . (c) Effective date The amendments made by this section shall apply to contributions made after December 31, 2018.