Scholarship Tax Relief for Students Act of 2021

Scholarship Tax Relief for Students Act of 2021

This bill excludes from gross income, for income tax purposes, any amount awarded under a Federal Pell Grant and any portion of a scholarship used by a full-time student for room and board.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5353 Introduced in House (IH)]

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117th CONGRESS
  1st Session
                                H. R. 5353

To amend the Internal Revenue Code of 1986 to exclude from gross income 
  any amount awarded under a Federal Pell Grant and any portion of a 
      scholarship used by a full-time student for room and board.


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                    IN THE HOUSE OF REPRESENTATIVES

                           September 23, 2021

  Mr. Kildee 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 amount awarded under a Federal Pell Grant and any portion of a 
      scholarship used by a full-time student for room and board.

    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 ``Scholarship Tax Relief for Students 
Act of 2021''.

SEC. 2. EXCLUSION FOR FEDERAL PELL GRANTS AND FOR SCHOLARSHIP AND 
              FELLOWSHIP FUNDS USED FOR ROOM AND BOARD.

    (a) In General.--Section 117(b)(2) of the Internal Revenue Code of 
1986 is amended by striking ``and'' at the end of subparagraph (A), by 
striking the period at the end of subparagraph (B) and inserting a 
comma, and by adding at the end the following new subparagraphs:
                    ``(C) room and board while carrying a full-time 
                workload for the course of study the individual is 
                pursuing at an educational organization, and
                    ``(D) in the case of amounts awarded under subpart 
                1 of part A of title IV of the Higher Education Act of 
                1965 (relating to Federal Pell Grants), any expenses 
                for which such amounts may be used by the individual 
                under such subpart.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to amounts received in taxable years beginning after December 31, 
2020.
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