Title: Protect Vulnerable Students from Surprise Tax Bills Act
Policy area: Taxation

Summary:
Protect Vulnerable Students from Surprise Tax Bills Act
This bill excludes from gross income, for income tax purposes, any qualified emergency financial aid grant. A qualified emergency financial aid grant is any amount received by a degree candidate at an institution of higher education for expenses related to the disruption of campus operations due to COVID-19 (i.e., coronavirus disease 2019).

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6743 Introduced in House (IH)]

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116th CONGRESS
  2d Session
                                H. R. 6743

To amend the CARES Act to exclude from gross income emergency financial 
            aid grants to students, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 8, 2020

Mr. Danny K. Davis of Illinois introduced the following bill; which was 
              referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the CARES Act to exclude from gross income emergency financial 
            aid grants to students, and for other purposes.

    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 ``Protect Vulnerable Students from 
Surprise Tax Bills Act''.

SEC. 2. EXCLUSION OF EMERGENCY FINANCIAL AID GRANTS FROM GROSS INCOME.

    (a) In General.--
            (1) Exclusion from gross income.--For purposes of the 
        Internal Revenue Code of 1986, gross income shall not include 
        any qualified emergency financial aid grant.
            (2) Qualified emergency financial aid grant.--The term 
        ``qualified emergency financial aid grant'' means any amount 
        received by an individual who--
                    (A) is a candidate for a degree at an eligible 
                educational institution described in section 25A(f)(2) 
                of the Internal Revenue Code of 1986, and--
                    (B) received an emergency financial aid grant--
                            (i) pursuant to section 18004 of the CARES 
                        Act for expenses related to the disruption of 
                        campus operations due to COVID-19 (including 
                        eligible expenses under a student's cost of 
                        attendance, such as food, housing, course 
                        materials, technology, health care, and child 
                        care);
                            (ii) pursuant to section 3504(a) of such 
                        Act, or pursuant to a grant use modification 
                        under section 3518(a) of such Act, for 
                        unexpected expenses and unmet financial need as 
                        the result of a qualifying emergency as defined 
                        in section 3502(a)(4) of such Act; or
                            (iii) pursuant to section 18008 of such Act 
                        for expenses directly related to coronavirus 
                        and the disruption of university operations.
    (b) Effective Date.--This section shall apply to emergency 
financial aid grants made after March 26, 2020.
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