[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3967 Introduced in House (IH)]
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118th CONGRESS
1st Session
H. R. 3967
To amend the Internal Revenue Code of 1986 to make permanent the
exclusion from taxable income of any student loan forgiveness or
discharge.
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IN THE HOUSE OF REPRESENTATIVES
June 9, 2023
Mr. Gomez (for himself and Mr. Pascrell) 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 make permanent the
exclusion from taxable income of any student loan forgiveness or
discharge.
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 ``Student Loan Tax Relief Act''.
SEC. 2. MODIFICATION OF TREATMENT OF STUDENT LOAN FORGIVENESS.
(a) In General.--Section 108(f) of the Internal Revenue Code of
1986 is amended--
(1) by amending paragraph (1) to read as follows:
``(1) In general.--In the case of an individual, gross
income does not include any amount which (but for this
subsection) would be includible in gross income by reasons of
the discharge (in whole or in part) 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) any institution of higher
education,
``(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).'',
(2) by striking paragraphs (2) and (5),
(3) by redesignating paragraphs (3) and (4) as paragraphs
(2) and (3), respectively, and
(4) in paragraph (2), as so redesignated, by--
(A) striking ``made by an organization described in
paragraph (2)(D)'' and inserting ``made by an
organization described in paragraph (1)(C) or made by a
private education lender (as defined in section
140(a)(7) of the Truth in Lending Act)'', and
(B) inserting ``or for such private education
lender'' after ``either such organization''.
(b) Effective Date.--The amendments made by this section shall
apply to discharges of loans after January 31, 2022.
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