[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1683 Introduced in House (IH)]
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117th CONGRESS
1st Session
H. R. 1683
To amend the Internal Revenue Code of 1986 to exclude certain student
loan forgiveness from gross income.
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IN THE HOUSE OF REPRESENTATIVES
March 9, 2021
Mr. Danny K. Davis of Illinois 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 certain student
loan forgiveness from gross income.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. MODIFICATION OF TREATMENT OF STUDENT LOAN FORGIVENESS.
(a) In General.--Section 108(f) of the Internal Revenue Code of
1986 is amended by striking paragraph (5) and inserting the following:
``(5) Special rule for discharges in 2021 through 2025.--
Gross income does not include any amount which (but for this
subsection) would be includible in gross income by reason of
the discharge (in whole or in part) after December 31, 2020,
and before January 1, 2026, of--
``(A) any loan provided expressly for postsecondary
educational expenses, regardless of whether provided
through the educational institution or directly to the
borrower, if such loan was made, insured, or guaranteed
by--
``(i) the United States, or an
instrumentality or agency thereof,
``(ii) a State, territory, or possession of
the United States, or the District of Columbia,
or any political subdivision thereof, or
``(iii) an eligible educational institution
(as defined in section 25A),
``(B) any private education loan (as defined in
section 140(a)(7) of the Truth in Lending Act),
``(C) any loan made by any educational organization
described in section 170(b)(1)(A)(ii) if such loan is
made--
``(i) pursuant to an agreement with any
entity described in subparagraph (A) or any
private education lender (as defined in section
140(a) of the Truth in Lending Act) under which
the funds from which the loan was made were
provided to such educational organization, or
``(ii) pursuant to a program of such
educational organization which is designed to
encourage its students to serve in occupations
with unmet needs or in areas with unmet needs
and under which the services provided by the
students (or former students) are for or under
the direction of a governmental unit or an
organization described in section 501(c)(3) and
exempt from tax under section 501(a), or
``(D) any loan made by an educational organization
described in section 170(b)(1)(A)(ii) or by an
organization exempt from tax under section 501(a) to
refinance a loan to an individual to assist the
individual in attending any such educational
organization but only if the refinancing loan is
pursuant to a program of the refinancing organization
which is designed as described in subparagraph (C)(ii).
The preceding sentence shall not apply to the discharge of a
loan made by an organization described in subparagraph (C) or
made by a private education lender (as defined in section
140(a)(7) of the Truth in Lending Act) if the discharge is on
account of services performed for either such organization or
for such private education lender.''.
(b) Effective Date.--The amendment made by this section shall apply
to discharges of loans after December 31, 2020.
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