Employer Participation in Repayment Act of 2019

Employer Participation in Repayment Act of 2019

This bill expands the tax exclusion for employer-provided educational assistance to include payments of qualified education loans by an employer to either an employee or a lender.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 460 Introduced in Senate (IS)]

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116th CONGRESS
  1st Session
                                 S. 460

To amend the Internal Revenue Code of 1986 to extend the exclusion for 
employer-provided education assistance to employer payments of student 
                                 loans.


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                   IN THE SENATE OF THE UNITED STATES

                           February 12, 2019

Mr. Warner (for himself, Mr. Thune, Mr. King, Mrs. Capito, Mr. Markey, 
    Mr. Roberts, Mr. Murphy, Mr. Hoeven, Mr. Jones, Mr. Rounds, Mr. 
Blumenthal, Ms. Collins, Mr. Tester, Mr. Blunt, Ms. Hassan, Mr. Young, 
Ms. Rosen, Mr. Gardner, and Ms. Sinema) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to extend the exclusion for 
employer-provided education assistance to employer payments of student 
                                 loans.

    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 ``Employer Participation in Repayment 
Act of 2019''.

SEC. 2. EXCLUSION FOR CERTAIN EMPLOYER PAYMENTS OF STUDENT LOANS.

    (a) In General.--Paragraph (1) of section 127(c) 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) Conforming Amendment; Denial of Double Benefit.--Paragraph (1) 
of section 221(e) of the Internal Revenue Code of 1986 is amended by 
inserting before the period the following: ``, or for which an 
exclusion is allowable under section 127 to the taxpayer's employer by 
reason of the payment by such employer of any indebtedness on a 
qualified education loan of the taxpayer''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments made after December 31, 2019.
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