H. R. 4363
IN THE HOUSE OF REPRESENTATIVES
January 11, 2016
Mr. Austin Scott of Georgia introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to exclude from gross income amounts paid by an employer on an employee’s student loans.
This Act may be cited as the
Student Tax Affordability and Relief Act.
Exclusion from gross income for benefits under student loan payment assistance programs
Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 127 the following new section:
Benefits under employer sponsored student loan repayment programs
In the case of an individual, gross income does not include qualified student loan payment assistance.
Qualified student loan payment assistance
For purposes of this section, the term qualified student loan payment assistance means amounts paid or incurred by an employer under a plan for the exclusive benefit of the employees of the employer to provide such employees with student loan payment assistance.
The amount taken into account under subsection (a) for a taxable year shall not exceed $10,000.
For purposes of this section—
Student loan payment assistance
The term student loan payment assistance means the payment of principal or interest on—
any indebtedness incurred by an employee for qualified higher education expenses incurred by the employee for education furnished to the employee, and
any indebtedness used to refinance indebtedness described in subparagraph (A).
Qualified higher education expense
The term qualified higher education expense means the cost of attendance as defined in section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087ll).
The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 127 the following new item:
Sec. 127A. Benefits under employer sponsored student loan repayment programs.
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.