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S. 2457 (114th): Employer Participation in Repayment Act of 2016

The text of the bill below is as of Jan 20, 2016 (Introduced).


II

114th CONGRESS

2d Session

S. 2457

IN THE SENATE OF THE UNITED STATES

January 20, 2016

(for himself, Mr. Thune, and Mrs. Capito) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to extend the exclusion for employer-provided education assistance to employer payments of student loans.

1.

Short title

This Act may be cited as the Employer Participation in Repayment Act of 2016.

2.

Exclusion for certain employer payments of student loans

(a)

In general

Paragraph (1) of section 127(c) of the Internal Revenue Code of 1986 is amended by striking and at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following new subparagraph:

(B)

the payment by an employer, whether paid to the employee or to a lender, of principal or interest on any qualified education loan (as defined in section 221(d)(1)) incurred by the employee, and

.

(b)

Conforming amendment; denial of double benefit

Paragraph (1) of section 221(e) of the Internal Revenue Code of 1986 is amended by inserting before the period the following: , or for which an exclusion is allowable under section 127 to the taxpayer's employer by reason of the payment by such employer of any indebtedness on a qualified education loan of the taxpayer.

(c)

Effective date

The amendments made by this section shall apply to payments made after December 31, 2016.