H.R. 2983 - Readily Ending Debt Under Corporate Engagement (REDUCE) Act of 2021

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 introduced the following bill;
which was referred to the Committee on _____

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). — 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.