I 

109TH CONGRESS 

1ST SESSION H. R. 1765 

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

amounts paid on behalf of Federal employees under Federal student 

loan repayment programs, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 21, 2005 

Mr. TOM DAVIS of Virginia (for himself, Mr. PORTER, Mr. HOYER, Mr. LEWIS

of Kentucky, Mr. MCHUGH, Mr. WOLF, Mr. ALEXANDER, Mr. PUTNAM, 

Mr. RUPPERSBERGER, Mrs. JO ANN DAVIS of Virginia, Mr. SANDERS, 

Mr. PAYNE, Mr. VAN HOLLEN, Mr. ALLEN, Mr. CUMMINGS, Mr. FARR, 

Mr. PALLONE, Mr. MORAN of Virginia, Mr. OWENS, Mr. TIERNEY, Mr. 

WAXMAN, Mr. WEXLER, Mr. WYNN, Mr. DAVIS of Illinois, Mr. FRANK

of Massachusetts, Mr. GRIJALVA, Ms. NORTON, Mr. RUSH, Mr. WEINER, 

Mr. CONYERS, Mrs. MALONEY, Ms. WATSON, Mr. MCDERMOTT, and Mr. 

BROWN of Ohio) introduced the following bill; which was referred to the 

Committee on Ways and Means, and in addition to the Committee on 

Government Reform, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To amend the Internal Revenue Code of 1986 to exclude 

from gross income amounts paid on behalf of Federal 

employees under Federal student loan repayment programs, and for other purposes. 

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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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Generating Oppor3 tunity by Forgiving Educational Debt for Service Act of 

4 2005’’. 

5 SEC. 2. EXCLUSION FOR STUDENT LOAN REPAYMENTS BY 

6 THE FEDERAL GOVERNMENT. 

7 (a) EXCLUSION FROM GROSS INCOME.—Section 

8 108(f) of the Internal Revenue Code of 1986 (relating to 

9 student loans) is amended by adding at the end the fol10 lowing: 

11 ‘‘(5) STUDENT LOAN REPAYMENTS BY FED12 ERAL GOVERNMENT.—In the case of an individual, 

13 gross income does not include any payments made 

14 by the Federal Government on behalf of such indi15 vidual under— 

16 ‘‘(A) section 5379 of title 5, United States 

17 Code, or 

18 ‘‘(B) any other similar Federal program 

19 for its employees.’’ 

20 (b) EXCLUSION FROM WAGES.— 

21 (1) IN GENERAL.—Section 3121(a) of such 

22 Code (defining wages) is amended by striking ‘‘or’’ 

23 at the end of paragraph (21), by striking the period 

24 at the end of paragraph (22) and inserting ‘‘; or’’, 

25 and by adding at the end the following: 
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1 ‘‘(23) any payment excluded from gross income 

2 under section 108(f)(4) (relating to student loan re3 payments by Federal Government).’’. 

4 (2) SOCIAL SECURITY ACT.—Section 209(a) of 

5 the Social Security Act (42 U.S.C. 409(a)) is 

6 amended by striking ‘‘or’’ at the end of paragraph 

7 (18), by striking the period at the end of paragraph 

8 (19) and inserting ‘‘; or’’, and by adding at the end 

9 the following: 

10 ‘‘(20) Any payment excluded from gross income 

11 under section 108(f)(4) of the Internal Revenue 

12 Code of 1986 (relating to student loan repayments 

13 by Federal Government).’’. 

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

15 this section shall apply to payments made in taxable years 

16 beginning after December 31, 2004. 

17 SEC. 3. REPORTING REQUIREMENT. 

18 (a) IN GENERAL.—Section 5379(h)(2) of title 5, 

19 United States Code, is amended by inserting ‘‘and the 

20 agencies that have not’’ after ‘‘the agencies that have’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 this section shall apply to reports submitted after the end 

23 of the 3-month period beginning on the date of enactment 

24 of this Act. 

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