Student Tax Affordability and Relief Act

Bill: 114-hr-4363
Sponsor: full_name: Rep. Scott, Austin [R-GA-8]
Introduced: 2016-01-11
Policy area: Taxation
Subjects: Employee benefits and pensions

Higher education

Income tax exclusion

Student aid and college costs
Latest action: action_date: 2016-01-11
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2016-01-11
action_desc: Introduced in House
text: <p><strong>Student Tax Affordability and Relief Act </strong></p> <p>This bill amends the Internal Revenue Code to exclude from an employee's gross income, for income tax purposes, qualified student loan payment assistance provided by an employer. This assistance includes the payment of principal or interest, up to $10,000 in a taxable year,&nbsp;on student loan indebtedness incurred by an employee for higher education expenses.&nbsp; </p>

tv_txt: I 114th CONGRESS 2d Session H. R. 4363 IN THE HOUSE OF REPRESENTATIVES January 11, 2016 Mr. Austin Scott of Georgia 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 amounts paid by an employer on an employee’s student loans.

1. Short title This Act may be cited as the Student Tax Affordability and Relief Act . 2. Exclusion from gross income for benefits under student loan payment assistance programs (a) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 127 the following new section: 127A. Benefits under employer sponsored student loan repayment programs (a) In general In the case of an individual, gross income does not include qualified student loan payment assistance. (b) Qualified student loan payment assistance For purposes of this section, the term qualified student loan payment assistance means amounts paid or incurred by an employer under a plan for the exclusive benefit of the employees of the employer to provide such employees with student loan payment assistance. (c) Limitations The amount taken into account under subsection (a) for a taxable year shall not exceed $10,000. (d) Definitions For purposes of this section— (1) Student loan payment assistance The term student loan payment assistance means the payment of principal or interest on— (A) any indebtedness incurred by an employee for qualified higher education expenses incurred by the employee for education furnished to the employee, and (B) any indebtedness used to refinance indebtedness described in subparagraph (A). (2) Qualified higher education expense The term qualified higher education expense means the cost of attendance as defined in section 472 of the Higher Education Act of 1965 (20 U.S.C. 1087 ll ). . (b) Clerical amendment The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 127 the following new item: Sec. 127A. Benefits under employer sponsored student loan repayment programs. . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.