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H.R. 4363 (114th): Student Tax Affordability and Relief Act


The text of the bill below is as of Jan 11, 2016 (Introduced). The bill was not enacted into law.


I

114th CONGRESS

2d Session

H. R. 4363

IN THE HOUSE OF REPRESENTATIVES

January 11, 2016

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 exclude from gross income amounts paid by an employer on an employee’s student loans.

1.

Short title

This Act may be cited as the Student Tax Affordability and Relief Act.

2.

Exclusion from gross income for benefits under student loan payment assistance programs

(a)

In general

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:

127A.

Benefits under employer sponsored student loan repayment programs

(a)

In general

In the case of an individual, gross income does not include qualified student loan payment assistance.

(b)

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.

(c)

Limitations

The amount taken into account under subsection (a) for a taxable year shall not exceed $10,000.

(d)

Definitions

For purposes of this section—

(1)

Student loan payment assistance

The term student loan payment assistance means the payment of principal or interest on—

(A)

any indebtedness incurred by an employee for qualified higher education expenses incurred by the employee for education furnished to the employee, and

(B)

any indebtedness used to refinance indebtedness described in subparagraph (A).

(2)

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).

.

(b)

Clerical amendment

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.

.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.