consistent, one-on-one or small-group ses-
sions. 
‘‘(c) REGULATIONS.—The Secretary shall issue such 
regulations or other guidance as may be necessary or ap-
propriate to carry out the purposes of this section.’’. 
(b) DEDUCTION ALLOWED
TO NON-ITEMIZERS.— 
Section 63(b) is further amended by striking ‘‘and’’ at the 
end of paragraph (5), by striking the period at the end 
of paragraph (6) and inserting ‘‘, and’’, and by adding 
at the end the following new paragraph: 
‘‘(7) the deduction provided in section 226.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for part VI of subchapter B of chapter 1 of subtitle A 
is further amended by striking the item relating to section 
226 (as added by section 6) and inserting the following 
new items: 
‘‘Sec. 226. Tutoring expenses. 
‘‘Sec. 227. Cross reference.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2026. 
SEC. 8. EXCLUSION OF INTEREST PAYMENTS ON CREDIT 
CARD DEBT. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of subtitle A is further amended by redesignating 
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section 227 as section 228 and inserting after section 226 
the following new section: 
‘‘SEC. 227. CREDIT CARD INTEREST PAYMENTS. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a deduction for the taxable year 
an amount equal to so much of the interest paid by the 
individual during the taxable year on an open-end credit 
plan involving a credit card as does not exceed $2,500. 
‘‘(b) DEFINITIONS.—The terms ‘open end consumer 
credit plan’ and ‘credit card’ have the meaning given such 
terms in section 103 of the Truth in Lending Act.’’. 
(b) DEDUCTION ALLOWED
TO NON-ITEMIZERS.— 
Section 63(b) is further amended by striking ‘‘and’’ at the 
end of paragraph (6), by striking the period at the end 
of paragraph (7) and inserting ‘‘, and’’, and by adding 
at the end the following new paragraph: 
‘‘(8) the deduction provided in section 227.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for part VI of subchapter B of chapter 1 of subtitle A 
is further amended by striking the item relating to section 
226 (as added by section 6) and inserting the following 
new items: 
‘‘Sec. 227.Credit card interest payments. 
‘‘Sec. 228. Cross reference.’’. 
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(d) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2026. 
SEC. 9. RENT DEDUCTION FOR PRIMARY RESIDENCE. 
(a) IN GENERAL.—Part VI of subchapter B of chap-
ter 1 of subtitle A is further amended by redesignating 
section 228 as section 229 and inserting after section 227 
the following new section: 
‘‘SEC. 228. RENT. 
‘‘(a) IN GENERAL.—In the case of an individual, 
there shall be allowed as a deduction for the taxable year 
an amount equal to the qualifying rent payments of such 
individual for the taxable year. 
‘‘(b) QUALIFYING RENT PAYMENTS.—For purposes 
of this section, the term ‘qualifying rent payments’ means 
amounts paid by the individual in rent for such individ-
ual’s principal residence (as such term is used in section 
121). 
‘‘(c) INCOME PHASEOUT.— 
‘‘(1) IN GENERAL.—The amount of the deduc-
tion determined under subsection (a) shall be re-
duced (but not below zero) by an amount equal to 
1 percent for every $500 ($1,000 in the case of a 
joint return) or fraction thereof by which such indi-
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vidual’s modified adjusted gross income exceeds the 
applicable threshold. 
‘‘(2) APPLICABLE THRESHOLD.—For purposes 
of this subsection, the term ‘applicable threshold’ 
means— 
‘‘(A) $150,000 in the case of a joint re-
turn, or 
‘‘(B) $75,000 in the case of any other indi-
vidual. 
‘‘(3) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of this section, the term ‘modified ad-
justed gross income’ means adjusted gross income 
increased by an amount excluded from gross income 
under sections 911, 931, and 933.’’. 
(b) DEDUCTION ALLOWED
TO NON-ITEMIZERS.— 
Section 63(b) is further amended by striking ‘‘and’’ at the 
end of paragraph (8), by striking the period at the end 
of paragraph (9) and inserting ‘‘, and’’, and by adding 
at the end the following new paragraph: 
‘‘(10) the deduction provided in section 228.’’. 
(c) CLERICAL AMENDMENT.—The table of sections 
for part VI of subchapter B of chapter 1 of subtitle A 
is further amended by striking the item relating to section 
228 (as added by section 8) and inserting the following 
new items: 
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‘‘Sec. 228.Rent. 
‘‘Sec. 229. Cross reference.’’. 
(d) EFFECTIVE DATE.—The amendment made by 
this section shall apply to taxable years beginning after 
December 31, 2026. 
SEC. 10. EXCLUSION OF DISCHARGE OF INDEBTEDNESS. 
(a) IN GENERAL.—Section 108(a)(1)(E) is amended 
to read as follows: 
‘‘(E) the taxpayer is an individual.’’. 
(b) 
COORDINATION
OF
EXCLUSIONS.—Section 
108(a)(2) is amended— 
(1) by striking subparagraph (C), 
(2) by redesignating subparagraphs (A) and 
(B) as subparagraphs (B) and (C), respectively, 
(3) by inserting before subparagraph (B) (as so 
redesignated) the following new subparagraph: 
‘‘(A) INDIVIDUAL EXCLUSION TAKES PREC-
EDENCE.—Subparagraphs (A), (B), (C), and 
(D) of paragraph (1) shall not apply to a dis-
charge to which subparagraph (E) of such 
paragraph applies.’’, and 
(4) in subparagraph (A) (as so redesignated), 
by inserting ‘‘over insolvency exclusion, qualified 
farm exclusion, and qualified real property business 
exclusion’’ after ‘‘precedence’’ in the heading. 
(c) CONFORMING AMENDMENTS.— 
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