Title: Andrew P. Carpenter Tax Act
Policy area: Taxation

Summary:
Tax Relief for our Nation's Heroes Act or the Andrew P. Carpenter Tax Act
This bill amends the Internal Revenue Code to exclude from gross income any amount attributable to the discharge of student loan indebtedness of a veteran who served on active duty and: (1) is deceased as a result of a service-connected death or disability, or (2) has a service-connected disability that the Department of Veterans Affairs has rated as total.


[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 500 Introduced in House (IH)]

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115th CONGRESS
  1st Session
                                H. R. 500

To amend the Internal Revenue Code of 1986 to exclude from gross income 
any discharge of indebtedness income on education loans of deceased or 
                           disabled veterans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 12, 2017

Mr. DesJarlais (for himself, Mrs. Black, Mrs. Blackburn, Mr. Brat, Mr. 
 Cohen, Mr. Cooper, Mr. Duncan of Tennessee, Mr. Fleischmann, Mr. King 
 of Iowa, Mr. Kustoff of Tennessee, Mr. Massie, Mr. Roe of Tennessee, 
 Mr. Rohrabacher, Mr. Stivers, and Mrs. Brooks of Indiana) introduced 
  the following bill; which was referred to the Committee on Ways and 
                                 Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
any discharge of indebtedness income on education loans of deceased or 
                           disabled veterans.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Tax Relief for our Nation's Heroes 
Act'' or the ``Andrew P. Carpenter Tax Act''.

SEC. 2. DISCHARGE OF INDEBTEDNESS INCOME ON EDUCATION LOANS OF DECEASED 
              OR DISABLED 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 or disabled veterans.--
                    ``(A) In general.--In the case of any student loan 
                described in subparagraph (C) of a covered individual, 
                no amount which (but for this paragraph) would 
                otherwise be includible in gross income by reason of 
                the discharge (in whole or in part) of such loan shall 
                be includible in gross income of any signer or cosigner 
                on such loan.
                    ``(B) Covered individual.--The term `covered 
                individual' means an individual--
                            ``(i) who is a veteran or member of the 
                        Armed Forces of the United States, who served 
                        on active duty in the Armed Forces of the 
                        United States, and
                            ``(ii) who--
                                    ``(I) is deceased--
                                            ``(aa) as a result of a 
                                        service-connected death, or
                                            ``(bb) as a result of a 
                                        service-connected disability 
                                        incurred as a result of such 
                                        active duty service, or
                                    ``(II) has a service-connected 
                                disability the Secretary of Veterans 
                                Affairs has rated as total.
                    ``(C) 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
                            ``(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 individual to assist the 
                        individual in attending an educational 
                        organization described in section 
                        170(b)(1)(A)(ii).
                    ``(D) Service-connected.--For purposes of 
                subparagraph (A), the term `service-connected' 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 occurring on or after October 7, 
2001.
    (c) Waiver of Limitation for Credits and Refunds Attributable to 
This Act.--If the credit or refund of any overpayment of tax resulting 
from the application 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 nevertheless be allowed or made if 
the claim therefor is filed before the close of the 2-year period 
beginning on the date of the enactment of this Act.
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