S. 1248 - Income-Based Repayment Debt Forgiveness Act
S. 1248; Income-Based Repayment Debt Forgiveness Act
- AuthorsMerkley, Sen. Jeff
- Institutional AuthorsU.S. Senate
- Code Sections
- Subject Area/Tax Topics
- Industry GroupsEducation
- Jurisdictions
- Tax Analysts Document Number2019-18788
- Tax Analysts Electronic Citation2019 TNT 93-28
116TH CONGRESS
1ST SESSION
S. 1248
To exclude the discharge of certain Federal student loans
from the calculation of gross income.
IN THE SENATE OF THE UNITED STATES
APRIL 30, 2019
Mr. MERKLEY (for himself and Mr. WYDEN) introduced the following bill; which
was read twice and referred to the Committee on Finance
A BILL
To exclude the discharge of certain Federal student loans from the calculation of gross income.
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 "Income-Based Repayment Debt Forgiveness Act".
SEC. 2. FORGIVENESS OF CERTAIN FEDERAL STUDENT LOANS EXCLUDED FROM INCOME TAX.
(a) IN GENERAL. — Paragraph (1) of section 108(f) of the Internal Revenue Code of 1986 is amended by striking "any student loan if" and all that follows and inserting "any student loan if —
"(A) such discharge was pursuant to a provision of such loan under which all or part of the indebtedness of the individual would be discharged if the individual worked for a certain period of time in certain professions for any of a broad class of employers, or
"(B) in the case of a loan made by the United States or an instrumentality or agency thereof, such discharge was pursuant to any Federal program or provision of Federal law which provides for income contingent or income-based repayment of such loan.".
(b) EFFECTIVE DATE. — The amendment made by subsection (a) shall apply to discharges of loans that occur on or after July 1, 2020.
- AuthorsMerkley, Sen. Jeff
- Institutional AuthorsU.S. Senate
- Code Sections
- Subject Area/Tax Topics
- Industry GroupsEducation
- Jurisdictions
- Tax Analysts Document Number2019-18788
- Tax Analysts Electronic Citation2019 TNT 93-28