H.R. 2226 (103rd): To amend the Internal Revenue Code of 1986 to restore the pre-1986 exclusion for scholarships for degree ...

...candidates.

103rd Congress, 1993–1994. Text as of May 20, 1993 (Introduced).

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HR 2226 IH

103d CONGRESS

1st Session

H. R. 2226

To amend the Internal Revenue Code of 1986 to restore the pre-1986 exclusion for scholarships for degree candidates.

IN THE HOUSE OF REPRESENTATIVES

May 20, 1993

Mr. LEWIS of Florida (for himself, Mr. DOOLITTLE, Mr. TOWNS, and Mr. WALSH) introduced the following bill; which was referred to the Committee on Ways and Means


A BILL

To amend the Internal Revenue Code of 1986 to restore the pre-1986 exclusion for scholarships for degree candidates.

    Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. RESTORATION OF PRE-1986 EXCLUSION FOR SCHOLARSHIPS FOR DEGREE CANDIDATES.

    (a) IN GENERAL- Section 117 of the Internal Revenue Code of 1986 (relating to qualified scholarships) is amended by striking all that precedes subsection (d) and inserting the following:

‘SEC. 117. SCHOLARSHIPS AND FELLOWSHIP GRANTS.

    ‘(a) GENERAL RULE- In the case of an individual who is a candidate for a degree at an educational organization described in section 170(b)(1)(A)(ii), gross income does not include--

      ‘(1) any amount received--

        ‘(A) as a scholarship at such an organization, or

        ‘(B) as a fellowship grant,

      including the value of contributed services and accommodations; and

      ‘(2) any amount received to cover expenses for--

        ‘(A) travel

        ‘(B) research,

        ‘(C) clerical help, or

        ‘(D) equipment,

      which are incident to such a scholarship or to a fellowship grant, but only to the extent that the amount is so expended by the recipient.

    ‘(b) LIMITATION- Subsections (a) and (c) shall not apply to that portion of any amount received which represents payment for teaching, research, or other services in the nature of part-time employment required as a condition to receiving the scholarship or the fellowship grant. If the teaching, research, or other services are required of all candidates (whether or not recipients of scholarships or fellowship grants) for a particular degree as a condition to receiving such degree, such teaching, research, or other services shall not be regarded as part-time employment within the meaning of this subsection.’

    (b) TECHNICAL AMENDMENTS-

      (1) Subsection (d) of section 117 of such Code is redesignated as subsection (c).

      (2) The item relating to section 117 in the table of sections for part III of subchapter B of chapter 1 of such Code is amended to read as follows:

‘Sec. 117. Scholarships and fellowship grants.’

    (c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.