S. 2871 - Indian Health Service Health Professions Tax Fairness Act of 2019

116TH CONGRESS
1ST SESSION

S. 2871

To amend the Internal Revenue Code of 1986 to exclude
from gross income payments under the Indian Health Service
Loan Repayment Program and certain amounts received under
the Indian Health Professions Scholarships Program.

IN THE SENATE OF THE UNITED STATES

NOVEMBER 14, 2019

Mr. UDALL (for himself and Ms. MURKOWSKI) introduced the following bill;
which was read twice and referred to the Committee on _____

A BILL

To amend the Internal Revenue Code of 1986 to exclude from gross income payments under the Indian Health Service Loan Repayment Program and certain amounts received under the Indian Health Professions Scholarships Program.

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 "Indian Health Service

SEC. 2. EXCLUSION FROM GROSS INCOME FOR PAYMENTS UNDER INDIAN HEALTH SERVICE LOAN REPAYMENT PROGRAM.

(a) IN GENERAL. — Paragraph (4) of section 108(f) of the Internal Revenue Code of 1986 is amended by inserting "under section 108 of the Indian Health Care Improvement Act," after "338I of such Act,".

(b) CLERICAL AMENDMENT. — The heading for section 108(f)(4) of such Code is amended by striking "AND CERTAIN" and inserting ", INDIAN HEALTH SERVICE LOAN REPAYMENT PROGRAM, AND CERTAIN".

(c) EFFECTIVE DATE. — The amendments made by this section shall apply to payments made after the date of the enactment of this Act.

SEC. 3. EXCLUSION OF CERTAIN AMOUNTS RECEIVED UNDER INDIAN HEALTH PROFESSIONS SCHOLARSHIPS PROGRAM.

(a) IN GENERAL. — Paragraph (2) of section 117(c) of the Internal Revenue Code of 1986 is amended by striking "or" at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and inserting ", or", and by adding at the end the following new subparagraph:

"(D) the Indian Health Professions Scholarships Program under section 104 of the Indian Health Care Improvement Act.".

(b) EFFECTIVE DATE. — The amendment made by subsection (a) shall apply to amounts received in taxable years beginning after December 31, 2019.