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 and qualified ABLE program contributions which may be excluded from gross income under subsection (a)(9) with respect to any employee shall not exceed $100 in any calendar year. (4) Nondiscrimination rule for employer contributions Subsection (a)(9) shall only apply to contributions provided with respect to a highly compensated employee if such contributions meet the requirements of paragraph (2)(B). (5) Inflation adjustment (A) In general In the case of any taxable year beginning in a calendar year after 2017, the $100 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 2016 for calendar year 1992 in subparagraph (B) 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, 2016. 3. Tax credit for small employer costs of establishing direct payroll deduction into qualified tuition programs and qualified ABLE programs (a) In general Section 45E of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (f) Application to programs for payroll deduction contributions to qualified tuition programs and qualified ABLE programs In the case of a qualified payroll deduction contribution program (as defined in section 132(o)(2)) established by an employer— (1) such