To amend the Internal Revenue Code of 1986 to exclude from gross income discharges of student loans the repayment of which is income contingent or income based.

Amends the Internal Revenue Code to exclude from gross income discharges of student loan indebtedness based on repayments which are income contingent or income based.

[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2492 Introduced in House (IH)]

111th CONGRESS
  1st Session
                                H. R. 2492

To amend the Internal Revenue Code of 1986 to exclude from gross income 
discharges of student loans the repayment of which is income contingent 
                            or income based.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 19, 2009

 Mr. Levin (for himself, Mr. Tiberi, Mr. George Miller of California, 
  Mr. Neal of Massachusetts, Mr. Hinojosa, and Mr. Davis of Illinois) 
 introduced the following bill; which was referred to the Committee on 
                             Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
discharges of student loans the repayment of which is income contingent 
                            or income based.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CERTAIN STUDENT LOANS THE REPAYMENT OF WHICH IS INCOME 
              CONTINGENT OR INCOME BASED.

    (a) In General.--Paragraph (1) of section 108(f) of the Internal 
Revenue Code of 1986 is amended by striking ``any student loan if'' and 
all that follows and inserting ``any student loan if--
            ``(A) such discharge was pursuant to a provision of such 
        loan under which all or part of the indebtedness of the 
        individual would be discharged if the individual worked for a 
        certain period of time in certain professions for any of a 
        broad class of employers, or
            ``(B) such discharge was pursuant to subsections (d)(1)(D) 
        and (e)(7) of section 455, or section 493C(b)(7), of the Higher 
        Education Act of 1965 (relating to income contingent and income 
        based repayment, respectively).''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to discharges of loans after June 30, 2009.
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