DEBT Act of 2019

Decreasing Employees Burdensome Taxes from Student Loans Act of 2019 or the DEBT Act of 2019

This bill amends the Internal Revenue Code, with respect to the tax treatment of student loan payments, to (1) expand the tax exclusion for employer-provided educational assistance programs to include an employer's payment of any qualified education loan incurred by an employee, (2) increase the maximum amount that may be excluded from the gross income of an employee under employer-provided educational assistance programs, and (3) increase the maximum tax deduction and the income limitation for interest on education loans.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5359 Introduced in House (IH)]

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116th CONGRESS
  1st Session
                                H. R. 5359

To amend the Internal Revenue Code of 1986 to expand the exclusion for 
employer-provided educational assistance and to expand the availability 
                of the student loan interest deduction.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 6, 2019

    Mr. Stivers (for himself, Miss Rice of New York, Mr. Katko, Ms. 
    Spanberger, and Ms. Kendra S. Horn of Oklahoma) 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 expand the exclusion for 
employer-provided educational assistance and to expand the availability 
                of the student loan interest deduction.

    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 ``Decreasing Employees Burdensome 
Taxes from Student Loans Act of 2019'' or the ``DEBT Act of 2019''.

SEC. 2. EXCLUSION FOR EMPLOYER PAYMENT OF QUALIFIED EDUCATION LOANS.

    (a) In General.--Section 127(c)(1) of the Internal Revenue Code of 
1986 is amended by striking ``and'' at the end of subparagraph (A), by 
redesignating subparagraph (B) as subparagraph (C), and by inserting 
after subparagraph (A) the following new subparagraph:
                    ``(B) the payment by an employer, whether paid to 
                the employee or to a lender, of principal or interest 
                on any qualified education loan (as defined in section 
                221(d)(1)) incurred by the employee, and''.
    (b) Denial of Double Benefit.--Section 221(e)(1) of such Code is 
amended by inserting before the period at the end the following: ``, or 
for any amount which is excludable from gross income under section 
127(c)(1)(B)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments made by employers after December 31, 2019.

SEC. 3. INCREASE IN MAXIMUM AMOUNT EXCLUDABLE UNDER EDUCATIONAL 
              ASSISTANCE PROGRAMS.

    (a) In General.--The text of paragraph (2) of section 127(a) of the 
Internal Revenue Code of 1986 is amended by striking ``$5,250'' both 
places it appears and inserting ``$10,000''.
    (b) Conforming Amendment.--The heading for section 127(a)(2) of 
such Code is amended by striking ``$5,250 maximum'' and inserting 
``Maximum''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments made by employers after December 31, 2019.

SEC. 4. MODIFICATION OF DEDUCTION FOR INTEREST ON EDUCATION LOANS.

    (a) Increased Maximum Deduction.--Section 221(b)(1) of the Internal 
Revenue Code of 1986 is amended by striking ``$2,500'' and inserting 
``$5,000''.
    (b) Increased Income Limitation.--Section 221(b)(2)(B)(ii) of such 
Code is amended by striking ``$15,000 ($30,000'' and inserting 
``$85,000 ($115,000''.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2019.
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