IIB 
112TH CONGRESS 
2D SESSION 
H. R. 5044 
IN THE SENATE OF THE UNITED STATES 
SEPTEMBER 20, 2012 
Received; read twice and referred to the Committee on Finance 
AN ACT 
To amend the Internal Revenue Code of 1986 to exclude 
from gross income any discharge of indebtedness income 
on education loans of deceased veterans. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
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SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Andrew P. Carpenter 
Tax Act’’. 
SEC. 2. DISCHARGE OF INDEBTEDNESS INCOME ON EDU-
CATION LOANS OF DECEASED VETERANS. 
(a) IN GENERAL.—Subsection (f) of section 108 of 
the Internal Revenue Code of 1986 is amended by adding 
at the end the following new paragraph: 
‘‘(5) DECEASED VETERANS.— 
‘‘(A) IN
GENERAL.—In the case of any 
student loan described in subparagraph (B) of 
an individual who is a veteran who served on 
active duty in the Armed Forces of the United 
States and who is deceased as a result of a 
service-connected disability, no amount which 
(but for this paragraph) would otherwise be in-
cludible in gross income by reason of the dis-
charge (in whole or in part) of such loan shall 
be includible in gross income of any cosigner on 
such loan. 
‘‘(B) STUDENT
LOAN
DESCRIBED.—For 
purposes of subparagraph (A), a student loan 
described in this subparagraph is a loan that— 
‘‘(i) is made, insured, or guaranteed 
under title IV of the Higher Education Act 
of 1965, or 
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‘‘(ii) is a private education loan (as 
defined in section 140(a)(7) of the Truth 
in Lending Act (15 U.S.C. 1650(a)(7))), 
made by an entity (other than an entity 
described in paragraph (2)) to an indi-
vidual to assist the individual in attending 
an educational organization described in 
section 170(b)(1)(A)(ii). 
‘‘(C) SERVICE-CONNECTED
DISABILITY.— 
For purposes of subparagraph (A), the term 
‘service-connected disability’ has the meaning 
given such term by section 101(16) of title 38, 
United States Code.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to discharges of indebtedness oc-
curring on or after October 7, 2001. 
(c) WAIVER OF LIMITATION FOR CREDITS AND RE-
FUNDS ATTRIBUTABLE TO THIS ACT.—If the credit or re-
fund of any overpayment of tax resulting from the applica-
tion of the amendment made by subsection (a) to a period 
before the date of enactment of this Act is prevented as 
of such date by the operation of any law or rule of law 
(including res judicata), such credit or refund may never-
theless be allowed or made if the claim therefor is filed 
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before the close of the 1-year period beginning on the date 
of the enactment of this Act. 
SEC. 3. ACCOUNTS IN THE THRIFT SAVINGS FUND SUBJECT 
TO CERTAIN FEDERAL TAX LEVIES. 
(a) IN GENERAL.—Section 8437(e)(3) of title 5, 
United States Code, is amended in the first sentence— 
(1) by striking ‘‘659)’’ and inserting ‘‘659),’’; 
and 
(2) by striking the period at the end and insert-
ing the following: ‘‘, and shall be subject to a Fed-
eral tax levy under section 6331 of the Internal Rev-
enue Code of 1986.’’. 
(b) DISPOSITION OF AMOUNTS.—Any potential rev-
enue gain attributable to the enactment of this Act, as 
determined by the Director of the Congressional Budget 
Office— 
(1) shall be deposited in the general fund of the 
Treasury of the United States; and 
(2) shall be used solely for purposes of deficit 
reduction. 
Passed the House of Representatives September 19, 
2012. 
Attest: 
KAREN L. HAAS, 
Clerk. 
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