REDUCE Act of 2021

Readily Ending Debt Under Corporate Engagement Act of 2021 or the REDUCE Act of 2021

This bill modifies the tax deduction for interest paid on student loans to allow such deduction without any offset for amounts received as employer-provided educational assistance.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2983 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 2983

 To amend the Internal Revenue Code of 1986 to allow the deduction for 
     interest paid on student loans without reduction for employer 
                        educational assistance.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 4, 2021

 Mr. Kinzinger (for himself and Mrs. Murphy of Florida) 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 allow the deduction for 
     interest paid on student loans without reduction for employer 
                        educational assistance.

    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 ``Readily Ending Debt Under Corporate 
Engagement Act of 2021'' or the ``REDUCE Act of 2021''.

SEC. 2. STUDENT LOAN INTEREST DEDUCTION NOT OFFSET BY EMPLOYER 
              EDUCATIONAL ASSISTANCE.

    (a) In General.--Section 221(d)(2)(A) of the Internal Revenue Code 
of 1986 is amended by striking ``127,''.
    (b) Change to Denial of Double Benefit Rule.--Section 221(e)(1) of 
such Code is amended by striking ``, or for which an exclusion is 
allowable under section 127 to the taxpayer by reason of the payment by 
the taxpayer's employer of any indebtedness on a qualified education 
loan of the taxpayer''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2020.
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