Employer Participation in Refinancing Act

Bill: 113-s-2429
Sponsor: full_name: Sen. Warner, Mark R. [D-VA]
Introduced: 2014-06-04
Policy area: Taxation
Subjects: Employee benefits and pensions

Income tax exclusion

Interest, dividends, interest rates

Student aid and college costs

Unemployment
Latest action: action_date: 2014-06-04
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2014-06-04
action_desc: Introduced in Senate
text: <p>Employer Participation in Refinancing Act - Amends the Internal Revenue Code to allow an exclusion from gross income for the payment of an employer, either to an employee or a lender, of any indebtedness of&nbsp;an employee under a qualified education refinance loan or any interest relating to such a loan.&nbsp; Defines "qualified education refinance loan" as any indebtedness used solely to refinance a qualified education loan with respect to which the lender offers the borrower protection in the event of unemployment or financial hardship.</p>

tv_txt: II 113th CONGRESS 2d Session S. 2429 IN THE SENATE OF THE UNITED STATES June 4, 2014 Mr. Warner (for himself and Mr. Thune ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend the Internal Revenue Code of 1986 to extend the exclusion for employer-provided educational assistance to employer payment of interest on certain refinanced student loans.

1. Short title This Act may be cited as the Employer Participation in Refinancing Act . 2. Exclusion for employer payment of interest on certain refinanced student loans (a) In general Paragraph (1) of section 127(c) of the Internal Revenue Code of 1986 is amended by striking and at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following new subparagraph: (B) the payment by an employer, whether paid to the employee or to a lender, of any indebtedness of the employee under a qualified education refinance loan or any interest relating to such a loan, and . (b) Qualified education refinance loan Subsection (c) of section 127 of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (8) Qualified education refinance loan The term qualified education refinance loan means any indebtedness used solely to refinance a qualified education loan (within the meaning of section 221(d)(1)) with respect to which the lender offers the borrower protection in the event of unemployment or financial hardship (as reasonably determined by the lender, including periods of forbearance or career assistance). . (c) Conforming amendment; denial of double benefit Paragraph (1) of section 221(e) of the Internal Revenue Code of 1986 is amended by inserting before the period the following: , or for which an exclusion is allowable under section 127 to the taxpayer's employer by reason of the payment by such employer of any indebtedness on a qualified education loan of the taxpayer . (d) Effective date The amendments made by this section shall apply to expenses paid after December 31, 2014.