I 

114TH CONGRESS 

1ST SESSION H. R. 2874 

To amend the Internal Revenue Code of 1986 to exclude from gross income 

any discharge of indebtedness income on education loans of deceased veterans. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 24, 2015 

Mr. DESJARLAIS (for himself, Mrs. BLACKBURN, Mr. COOPER, Mr. DUNCAN

of Tennessee, Mr. FLEISCHMANN, Mr. ROE of Tennessee, Mr. POLIQUIN, 

Mr. FINCHER, Mrs. BLACK, Mr. JORDAN, and Mr. MASSIE) 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 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, 

3 SECTION 1. SHORT TITLE. 

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

5 Tax Act’’. 


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1 SEC. 2. DISCHARGE OF INDEBTEDNESS INCOME ON EDU2 CATION LOANS OF DECEASED VETERANS. 

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

4 the Internal Revenue Code of 1986 is amended by adding 

5 at the end the following new paragraph: 

6 ‘‘(5) DECEASED VETERANS.— 

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

8 student loan described in subparagraph (B) of 

9 an individual who is a veteran who served on 

10 active duty in the Armed Forces of the United 

11 States and who is deceased as a result of a 

12 service-connected disability, no amount which 

13 (but for this paragraph) would otherwise be in14 cludible in gross income by reason of the dis15 charge (in whole or in part) of such loan shall 

16 be includible in gross income of any cosigner on 

17 such loan. 

18 ‘‘(B) STUDENT LOAN DESCRIBED.—For 

19 purposes of subparagraph (A), a student loan 

20 described in this subparagraph is a loan that— 

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

22 under title IV of the Higher Education Act 

23 of 1965, or 

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

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

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


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1 made by an entity (other than an entity 

2 described in paragraph (2)) to an indi3 vidual to assist the individual in attending 

4 an educational organization described in 

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

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

7 For purposes of subparagraph (A), the term 

8 ‘service-connected disability’ has the meaning 

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

10 United States Code.’’. 

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

12 this section shall apply to discharges of indebtedness oc13 curring on or after October 7, 2001. 

14 (c) WAIVER OF LIMITATION FOR CREDITS AND RE15 FUNDS ATTRIBUTABLE TO THIS ACT.—If the credit or re16 fund of any overpayment of tax resulting from the applica17 tion of the amendment made by subsection (a) to a period 

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

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

20 (including res judicata), such credit or refund may never21 theless be allowed or made if the claim therefor is filed 

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

23 of the enactment of this Act. 

Æ 


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