1. Short title This Act may be cited as the Upward Mobility Enhancement Act . 2. Increase in exclusion for educational assistance programs (a) In general Section 127(a)(2) of the Internal Revenue Code of 1986 is amended to read as follows: (2) Maximum exclusion (A) In general This section shall apply only to the first $12,000 of educational assistance furnished to an individual during a calendar year, in the case of assistance for education below the graduate level. (B) Inflation adjustment In the case of any calendar year after 2023, the dollar amount in subparagraph (A) 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 such taxable year begins by substituting calendar year 2022 for calendar year 2016 in subparagraph (A)(ii) thereof. If any increase determined under this subparagraph is not a multiple of $50, such increase shall be rounded to the next lowest multiple of $50. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2022. 3. Expenses for education-related tools and technology (a) In general Section 127(c)(1) of the Internal Revenue Code of 1986 is amended by striking equipment both places it appears in subparagraphs (A) and (C) thereof and inserting education-related tools and technology and other equipment . (b) Education-Related tools and technology Section 127(c) of such Code is amended by adding at the end the following new paragraph: (8) Education-related tools and technology For purposes of paragraph (1), the term education-related tools and technology includes any— (A) hand tools and construction equipment, (B) computer or peripheral equipment (as defined in section 168(i)(2)(B)), (C) computer software (as defined in section 197(e)(3)(B)), (D) internet access and related services (including equipment or technology necessary for internet access), (E) internet, mobile, or virtual reality learning tools and