Student Loan Tax Debt Relief Act

Student Loan Tax Debt Relief Act

Amends the Internal Revenue Code to expand the exclusion from gross income of income attributable to the discharge of student loan indebtedness to include indebtedness discharged pursuant to income-contingent and income-based repayment plans.

[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2429 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 2429

To amend the Internal Revenue Code of 1986 to exclude from gross income 
   any discharge of income contingent and income-based student loan 
                             indebtedness.


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                    IN THE HOUSE OF REPRESENTATIVES

                              May 19, 2015

 Mr. McDermott (for himself, Mr. Blumenauer, Mr. Langevin, Ms. Kaptur, 
   Mr. Rangel, Mr. Conyers, Ms. Norton, Mr. Vargas, Mr. DeFazio, Mr. 
 Honda, Mr. DeSaulnier, Mr. Hastings, Ms. Brownley of California, Mr. 
Van Hollen, Ms. Moore, Mr. Rush, Mr. Meeks, Mr. Hinojosa, Ms. Clark of 
  Massachusetts, Mr. Gutierrez, Mr. Danny K. Davis of Illinois, Mrs. 
     Capps, Mr. Cardenas, Mr. Welch, Ms. Schakowsky, Mr. Larson of 
 Connecticut, Mr. Doggett, Mr. McNerney, Mr. Larsen of Washington, Mr. 
  Grijalva, Mr. Brendan F. Boyle of Pennsylvania, Mr. Cicilline, Mr. 
    Cummings, Mr. Kind, and Mr. Smith of Washington) introduced the 
 following bill; which was referred to the Committee on Ways and Means

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                                 A BILL


 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
   any discharge of income contingent and income-based student loan 
                             indebtedness.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Loan Tax Debt Relief Act''.

SEC. 2. EXCLUSION FROM GROSS INCOME FOR DISCHARGE OF INCOME CONTINGENT 
              AND INCOME-BASED STUDENT LOAN INDEBTEDNESS.

    (a) In General.--Paragraph (1) of section 108(f) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(1) In general.--In the case of an individual, gross 
        income does not include any amount which (but for this 
        subsection) would be includible in gross income by reason of 
        the discharge (in whole or in part) of any student loan if such 
        discharge was pursuant to--
                    ``(A) 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) 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 amendments made by this section shall 
apply to discharges of indebtedness after the date of the enactment of 
this Act.
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