Student Tax Relief Act of 2015

Student Tax Relief Act of 2015

This bill amends the Internal Revenue Code to exclude from the gross income of a student, for income tax purposes, imputed income due to a discharge of student loan indebtedness under provisions of the Higher Education Act of 1965 or in connection with the closure of an educational institution.

[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3206 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 3206

To amend the Internal Revenue Code of 1986 to exclude from gross income 
  student loan indebtedness discharged in connection with closures of 
           educational institutions, and for other purposes.


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                    IN THE HOUSE OF REPRESENTATIVES

                             July 23, 2015

Mr. McDermott (for himself, Ms. Frankel of Florida, Ms. Moore, Mr. Van 
Hollen, Mr. Capuano, Ms. Clark of Massachusetts, Mr. Scott of Virginia, 
 Mr. Takano, Mr. Conyers, Mr. Swalwell of California, Mr. Blumenauer, 
   Mr. Gallego, Mr. Rangel, Mr. Honda, Mr. Ellison, Ms. Judy Chu of 
  California, Mr. Thompson of California, Mr. Murphy of Florida, Ms. 
 Wilson of Florida, Mrs. Torres, Mr. Farr, Mrs. Napolitano, Ms. Maxine 
Waters of California, and Ms. Bonamici) 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 
  student loan indebtedness discharged in connection with closures of 
           educational institutions, and for other purposes.

    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 Tax Relief Act of 2015''.

SEC. 2. EXCLUSION FROM GROSS INCOME OF STUDENT LOAN INDEBTEDNESS 
              CANCELLED, DISCHARGED, OR FORGIVEN.

    (a) In General.--Section 108(f) of the Internal Revenue Code of 
1986 is amended by adding at the end the following:
            ``(5) Discharges in connection with student loan 
        indebtedness cancelled, discharged, or forgiven.--
                    ``(A) In general.--Gross income shall not include--
                            ``(i) any amount of a student loan 
                        discharged in whole or in part pursuant to 
                        section 437(c) of the Higher Education Act of 
                        1965 (20 U.S.C. 1087(c)) or by reason of a 
                        defense asserted pursuant to section 455(h) of 
                        such Act (20 U.S.C. 1087e(h)),
                            ``(ii) any amount of a loan discharged 
                        under section 464(g) of such Act (20 U.S.C. 
                        1087dd(g)),
                            ``(iii) any amount of a loan, and interest 
                        on a loan, which is canceled under section 465 
                        of such Act (20 U.S.C. 1087ee(a)(5)), or
                            ``(iv) any amount which (but for this 
                        subparagraph) would be includible in gross 
                        income by reason of the discharge (in whole or 
                        in part) of a loan to assist the attendance at 
                        an institution of higher learning if such 
                        discharge was pursuant to an agreement with the 
                        Consumer Financial Protection Bureau or any 
                        other Federal agency in connection with the 
                        closure (or other agency action) relating to 
                        such institution or successor institution.
                    ``(B) Limitation on exclusion.--Notwithstanding any 
                other provision of law, no amount shall be excluded 
                from gross income after the date of the enactment of 
                this paragraph by a provision of the Higher Education 
                Act of 1965.''.
    (b) Effective Date.--
            (1) In general.--Except as provided by paragraph (2), the 
        amendment made by subsection (a) shall apply with respect to 
        any forgiveness of indebtedness after June 19, 2014.
            (2) Limitation.--Section 108(f)(5)(B) of the Internal 
        Revenue Code of 1986, as added by subsection (a), shall apply 
        to loans cancelled, discharged, or forgiven after the date of 
        the enactment of this Act.
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