I
106TH CONGRESS
2D SESSION
H. R. 4258
To amend the Higher Education Act of 1965 to improve the program for
the forgiveness of student loans to teachers, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
APRIL 12, 2000
Mr. KUYKENDALL introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Education and the Workforce, 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 Higher Education Act of 1965 to improve
the program for the forgiveness of student loans to
teachers, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Student Loan Forgive-
ness Act of 2000’’.
tional and Community Service Act of 1990 (42 U.S.C.
12571 et seq.).
‘‘(g) DEFINITION.—For purposes of this section, the
term ‘year’, where applied to service as a teacher, means
an academic year as defined by the Secretary.’’.
(b) NO INCOME TAX BY REASON OF LOAN FORGIVE-
NESS.—Subsection (f) of section 108 of the Internal Rev-
enue Code of 1986 is amended by adding at the end the
following new paragraph:
‘‘(4) LOAN FORGIVENESS FOR TEACHERS.—In
the case of an individual, gross income does not in-
clude any amount which (but for this paragraph)
would be includible in gross income by reason of the
discharge (in whole or in part) of any loan if such
discharge was pursuant to section 428J of the High-
er Education Act of 1965 (20 U.S.C. 1078–10), as
in effect on the date of the enactment of this para-
graph.’’
(c) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply with respect to years of service
described in section 428J(b)(1) of the Higher Education
Act of 1965 (as amended by such subsection) that begin
on or after July 1, 1998.
TITLE II—TAX CREDITS FOR
TEACHING
SEC. 201. $1,000 CREDIT FOR FULL-TIME PUBLIC ELEMEN-
TARY AND SECONDARY SCHOOL TEACHERS.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 25A the following new
section:
‘‘SEC. 25B. CREDIT FOR FULL-TIME PUBLIC ELEMENTARY
AND SECONDARY SCHOOL TEACHERS.
‘‘(a) IN GENERAL.—In the case of an eligible indi-
vidual, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year the amount
of $1,000.
‘‘(b) ELIGIBLE INDIVIDUAL.—For purposes of sub-
section (a), the term ‘eligible individual’ means any indi-
vidual who, for the academic year ending in the taxable
year, was a full-time teacher at a public elementary or sec-
ondary school.
‘‘(c) REDUCTION OF CREDIT WHERE LOAN FOR-
GIVEN BY REASON OF TEACHING.—The $1,000 amount
in subsection (a) shall be reduced (but not below zero) by
the amount of any loan for the education of the individual
which is forgiven or canceled during the taxable year by
reason of being such a teacher.’’
(b) CLERICAL AMENDMENT.—The table of sections
for such subpart A is amended by inserting after the item
relating to section 25A the following new item:
‘‘Sec. 25B. Credit for full-time public elementary and secondary
school teachers.’’
(c) EFFECTIVE DATE.—The amendments made by
this section apply to taxable years beginning after the date
of the enactment of this Act.
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