IIB 

112TH CONGRESS 

2D SESSION H. R. 5044 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 20, 2012 

Received; read twice and referred to the Committee on Finance 

AN ACT 

To amend the Internal Revenue Code of 1986 to exclude 

from gross income any discharge of indebtedness income 

on education loans of deceased veterans. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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HR 5044 RFS

1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Andrew P. Carpenter 

3 Tax Act’’. 

4 SEC. 2. DISCHARGE OF INDEBTEDNESS INCOME ON EDU5 CATION LOANS OF DECEASED VETERANS. 

6 (a) IN GENERAL.—Subsection (f) of section 108 of 

7 the Internal Revenue Code of 1986 is amended by adding 

8 at the end the following new paragraph: 

9 ‘‘(5) DECEASED VETERANS.— 

10 ‘‘(A) IN GENERAL.—In the case of any 

11 student loan described in subparagraph (B) of 

12 an individual who is a veteran who served on 

13 active duty in the Armed Forces of the United 

14 States and who is deceased as a result of a 

15 service-connected disability, no amount which 

16 (but for this paragraph) would otherwise be in17 cludible in gross income by reason of the dis18 charge (in whole or in part) of such loan shall 

19 be includible in gross income of any cosigner on 

20 such loan. 

21 ‘‘(B) STUDENT LOAN DESCRIBED.—For 

22 purposes of subparagraph (A), a student loan 

23 described in this subparagraph is a loan that— 

24 ‘‘(i) is made, insured, or guaranteed 

25 under title IV of the Higher Education Act 

26 of 1965, or 


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HR 5044 RFS

1 ‘‘(ii) is a private education loan (as 

2 defined in section 140(a)(7) of the Truth 

3 in Lending Act (15 U.S.C. 1650(a)(7))), 

4 made by an entity (other than an entity 

5 described in paragraph (2)) to an indi6 vidual to assist the individual in attending 

7 an educational organization described in 

8 section 170(b)(1)(A)(ii). 

9 ‘‘(C) SERVICE-CONNECTED DISABILITY.— 

10 For purposes of subparagraph (A), the term 

11 ‘service-connected disability’ has the meaning 

12 given such term by section 101(16) of title 38, 

13 United States Code.’’. 

14 (b) EFFECTIVE DATE.—The amendments made by 

15 this section shall apply to discharges of indebtedness oc16 curring on or after October 7, 2001. 

17 (c) WAIVER OF LIMITATION FOR CREDITS AND RE18 FUNDS ATTRIBUTABLE TO THIS ACT.—If the credit or re19 fund of any overpayment of tax resulting from the applica20 tion of the amendment made by subsection (a) to a period 

21 before the date of enactment of this Act is prevented as 

22 of such date by the operation of any law or rule of law 

23 (including res judicata), such credit or refund may never24 theless be allowed or made if the claim therefor is filed 


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HR 5044 RFS

1 before the close of the 1-year period beginning on the date 

2 of the enactment of this Act. 

3 SEC. 3. ACCOUNTS IN THE THRIFT SAVINGS FUND SUBJECT 

4 TO CERTAIN FEDERAL TAX LEVIES. 

5 (a) IN GENERAL.—Section 8437(e)(3) of title 5, 

6 United States Code, is amended in the first sentence— 

7 (1) by striking ‘‘659)’’ and inserting ‘‘659),’’; 

8 and 

9 (2) by striking the period at the end and insert10 ing the following: ‘‘, and shall be subject to a Fed11 eral tax levy under section 6331 of the Internal Rev12 enue Code of 1986.’’. 

13 (b) DISPOSITION OF AMOUNTS.—Any potential rev14 enue gain attributable to the enactment of this Act, as 

15 determined by the Director of the Congressional Budget 

16 Office— 

17 (1) shall be deposited in the general fund of the 

18 Treasury of the United States; and 

19 (2) shall be used solely for purposes of deficit 

20 reduction. 

Passed the House of Representatives September 19, 

2012. 

Attest: KAREN L. HAAS, 

Clerk. 


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