II 

116TH CONGRESS 

1ST SESSION S. 1425 

To amend the Internal Revenue Code of 1986 to expand the deduction 

for interest on education loans, to extend and expand the deduction 

for qualified tuition and related expenses, and eliminate the limitation 

on contributions to Coverdell education savings accounts. 

IN THE SENATE OF THE UNITED STATES 

MAY 13, 2019 

Mr. PAUL 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 expand 

the deduction for interest on education loans, to extend 

and expand the deduction for qualified tuition and related expenses, and eliminate the limitation on contributions to Coverdell education savings accounts. 

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

3 SECTION 1. EXPANSION OF DEDUCTION FOR INTEREST ON 

4 EDUCATION LOANS. 

5 (a) ELIMINATION OF CAP ON DEDUCTION.—Section 

6 221 of the Internal Revenue Code of 1986 is amended by 

7 striking subsections (b) and (f). 


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1 (b) CARRYOVER OF EXCESS INTEREST.—Section 221 

2 of the Internal Revenue Code of 1986, as amended by sub3 section (a), is amended by inserting after subsection (a) 

4 the following new subsection: 

5 ‘‘(b) CARRYOVER.—If the amount of the deduction 

6 allowable under subsection (a) exceeds the taxable income 

7 of the taxpayer for the taxable year (determined without 

8 regard to this section and section 222), then an amount 

9 equal to such excess shall be treated as interest paid by 

10 the taxpayer in the succeeding taxable year on a qualified 

11 education loan.’’. 

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

13 this section shall apply to taxable years beginning after 

14 the date of the enactment of this Act. 

15 SEC. 2. EXPANSION OF DEDUCTION FOR QUALIFIED TUI16 TION AND RELATED EXPENSES. 

17 (a) ELIMINATION OF DOLLAR LIMITATION; CARRY18 OVER OF EXCESS EXPENSES.— 

19 (1) IN GENERAL.—Subsection (b) of section 

20 222 of the Internal Revenue Code of 1986 is amend21 ed to read as follows: 

22 ‘‘(b) CARRYOVER.—If the amount of the deduction 

23 allowable under subsection (a) exceeds the taxable income 

24 of the taxpayer for the taxable year (determined without 

25 regard to this section), then an amount equal to such exVerDate Sep 11 2014 19:08 May 21, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1425.IS S1425

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1 cess shall be treated as qualified tuition and related ex2 penses paid by the taxpayer in the succeeding taxable 

3 year.’’. 

4 (2) CONFORMING AMENDMENT.—Paragraph (3) 

5 of section 222(d) of such Code is amended by strik6 ing ‘‘DEDUCTION.—’’ and inserting ‘‘DEDUCTION.— 

7 Except as provided in subsection (b)—’’. 

8 (b) PERMANENT EXTENSION.—Section 222 of the 

9 Internal Revenue Code of 1986 is amended by striking 

10 subsection (e). 

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

12 this section shall apply to taxable years beginning after 

13 December 31, 2017. 

14 SEC. 3. EXPANSION OF RULES FOR COVERDELL EDU15 CATION SAVINGS ACCOUNTS. 

16 (a) ELIMINATION OF CONTRIBUTION LIMITATION.— 

17 (1) IN GENERAL.—Section 530(b)(1)(A) of the 

18 Internal Revenue Code of 1986 is amended by in19 serting ‘‘or’’ at the end of clause (i), by striking ‘‘, 

20 or’’ at the end of clause (ii) and inserting a period, 

21 and by striking clause (iii). 

22 (2) CONFORMING AMENDMENT.—Section 530 

23 of such Code is amended by striking subsection (c). 

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

25 this section shall apply to contributions made in taxable 


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1 years beginning after the date of the enactment of this 

2 Act. 

Æ 


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