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SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Pension Interest Rate Relief Act of 
2002''.

SEC. 2. INTEREST RATE RANGE FOR ADDITIONAL FUNDING REQUIREMENTS.

    (a) Amendments to the Internal Revenue Code of 1986.--
            (1) Special rule.--Clause (i) of section 412(l)(7)(C) of 
        the Internal Revenue Code of 1986 (relating to interest rate) 
        is amended by adding at the end the following new subclause:
                                    ``(III) Special rule for 2001 
                                through 2004.--For a plan year 
                                beginning in 2001, 2002, 2003 or 2004, 
                                notwithstanding subclause (I), in the 
                                case that the rate of interest used 
                                under subsection (b)(5) exceeds the 
                                highest rate permitted under subclause 
                                (I), the rate of interest used to 
                                determine current liability under this 
                                subsection may exceed the rate of 
                                interest otherwise permitted under 
                                subclause (I); except that such rate of 
                                interest shall not exceed 120 percent 
                                of the weighted average referred to in 
                                subsection (b)(5)(B)(ii).''
            (2) Quarterly contributions.--Subsection (m) of section 412 
        of such Code is amended by adding at the end the following new 
        paragraph:
            ``(7) Special rule for 2005.--In any case in which the 
        interest rate used to determine current liability is determined 
        under subsection (l)(7)(C)(i)(III) for purposes of applying 
        paragraphs (1) and (4)(B)(ii) for plan years beginning in 2005, 
        the current liability for the preceding plan year shall be 
        redetermined using 105 percent as the specified percentage 
        determined under subsection (l)(7)(C)(i)(II).''
    (b) Amendments to the Employee Retirement Income Security Act of 
1974.--
            (1) Special rule.--Clause (i) of section 302(d)(7)(C) of 
        the Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1082(d)(7)(C)) is amended by adding at the end the following 
        new subclause:
                                    ``(III) Special rule for 2001 
                                through 2004.--For a plan year 
                                beginning in 2001, 2002, 2003 or 2004, 
                                notwithstanding subclause (I), in the 
                                case that the rate of interest used 
                                under subsection (b)(5) exceeds the 
                                highest rate permitted under subclause 
                                (I), the rate of interest used to 
                                determine current liability under this 
                                subsection may exceed the rate of 
                                interest otherwise permitted under 
                                subclause (I); except that such rate of 
                                interest shall not exceed 120 percent 
                                of the weighted average referred to in 
                                subsection (b)(5)(B)(ii).''
            (2) Quarterly contributions.--Subsection (e) of section 302 
        of such Act (29 U.S.C. 1082) is amended by adding at the end 
        the following new paragraph:
            ``(7) Special rule for 2005.--In any case in which the 
        interest rate used to determine current liability is determined 
        under subsection (d)(7)(C)(i)(III) for purposes of applying 
        paragraphs (1) and (4)(B)(ii) for plan years beginning in 2005, 
        the current liability for the preceding plan year shall be 
        redetermined using 105 percent as the specified percentage 
        determined under subsection (d)(7)(C)(i)(II).''
    (c) PBGC.--Clause (iii) of section 4006(a)(3)(E) of the Employee 
Retirement Income Security of Act 1974 (29 U.S.C. 1306(a)(3)(E)) is 
amended by adding at the end the following new subclause:
    ``(IV) In the case of plan years beginning after December 31, 2001, 
and before January 1, 2005, subclause (II) shall be applied by 
substituting `100 percent' for `85 percent' and by substituting `115 
percent' for `100 percent'. Subclause (III) shall be applied for such 
years without regard to the preceding sentence. Any reference to this 
clause by any other sections or subsections (other than sections 4010, 
4011 and 4043) shall be treated as a reference to this clause without 
regard to this subclause.''
    (d) Amendments to Retirement Protection Act of 1994.--
            (1) Transition rule made permanent.--Paragraph (1) of 
        section 769(c) of the Retirement Protection Act of 1994 is 
        amended--
                    (A) by striking ``transition'' each place it 
                appears in the heading and the text, and
                    (B) by striking ``for any plan year beginning after 
                1996 and before 2010''.
            (2) Special rules.--Paragraph (2) of section 769(c) of the 
        Retirement Protection Act of 1994 is amended to read as 
        follows:
            ``(2) Special rules.--The rules described in this paragraph 
        are as follows:
                    ``(A) For purposes of section 412(l)(9)(A) of the 
                Internal Revenue Code of 1986 and section 302(d)(9)(A) 
                of the Employee Retirement Income Security Act of 1974, 
                the funded current liability percentage for any plan 
                year shall be treated as not less than 90 percent.
                    ``(B) For purposes of section 412(m) of the 
                Internal Revenue Code of 1986 and section 302(e)(9) of 
                the Employee Retirement Income Security Act of 1974, 
                the funded current liability percentage for any plan 
                year shall be treated as not less than 100 percent.
                    ``(C) For purposes of determining unfunded vested 
                benefits under section 4006(a)(3)(E)(iii) of the 
                Employee Retirement Income Security Act of 1974, the 
                mortality table shall be the mortality table used by 
                the plan.''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to plan years beginning after December 31, 2001.
Pension Interest Rate Relief Act of 2002 - Amends the Internal Revenue Code and Employee Retirement Income Security Act of 1974 by increasing, for plan years beginning 2001 through 2004, the permissible interest rate range used to determine additional funding requirements for certain benefit plans which are not multiemployer plans.Sets forth a special rule regarding the interest rate used to determine liability for plan years beginning in 2005.Amends the Retirement Protection Act of 1994 to establish special rules relating to funding liability percentages and the mortality table to be used for purposes of determining unfunded vested benefits.

SECTION 1. SHORT TITLE.

     This Act may be cited as ``The American Horse Slaughter Prevention 
Act''.

SEC. 2. FINDINGS.

     Congress makes the following findings:
            (1) Horses have played a significant role in the history 
        and culture of the United States.
            (2) Horses in the United States are not raised for food or 
        fiber.
            (3) As a non-food and recreational animal, horses should be 
        protected from slaughter.
            (4) The foreign-owned horse slaughter industry has 
        slaughtered and exported for human consumption over 3 million 
        American horses in the last 2 decades.
            (5) Approximately 55,000 American horses are slaughtered 
        for human consumption annually in the United States by foreign-
        owned slaughterhouses. Tens of thousands of live horses are 
        exported from the United States annually for slaughter.
            (6) Horses slaughtered in these foreign-owned plants in the 
        United States have often been hauled several thousand miles 
        over several days, contrary to acceptable non-slaughter 
        standards for water, food, and rest.
            (7) Many horses shipped to slaughter are young, healthy 
        animals. Others are old, sick, blind, crippled and in otherwise 
        poor condition and are unfit to withstand the rigors of long 
        travel. Horses sent to be slaughtered are often shipped on 
        crowded double deck trucks designed for shorter necked species 
        such as pigs, cattle and sheep, and are forced to travel in a 
        bent position which can result in suffering, injury and death.
            (8) Killing of horses by foreign-owned slaughterhouses in 
        the United States contrasts with the preferable method of 
        killing by chemical euthanasia.
            (9) Horses endure repeated blows to the head with stunning 
        equipment that often does not render the animals unconscious. 
        Some horses proceed still conscious through the remaining 
        stages of slaughter being bled out and dismembered.
            (10) Because horses in America are not food animals, 
        veterinarians commonly prescribe and treat horses with potent 
        drugs that may reside in the horseflesh and be dangerous when 
        consumed by humans.
            (11) Because of the lack of disclosure on the part of the 
        agents and dealers for the slaughter plants people's horses are 
        many times acquired and slaughtered through fraud and 
        misrepresentation. Slaughter also provides a quick and 
        evidence-free outlet for stolen horses.
            (12) The imposition of a ban on the sale of horseflesh for 
        human consumption, regardless of its source, is consistent with 
        the international obligations of the United States because it 
        applies equally to domestic and foreign producers and avoids 
        any discrimination among foreign sources of competing products. 
        Such a ban is also consistent with provisions of international 
        agreements to which the United States is a party that expressly 
        allow for measures designed to protect the health and welfare 
        of animals and to enjoin the use of deceptive trade practices 
        in international or domestic commerce.

SEC. 3. PURPOSE.

     The purpose of this Act is --
            (1) to prohibit the slaughter of horses for human 
        consumption;
            (2) to prohibit the sale, possession, and trade of 
        horseflesh for human consumption;
            (3) to prohibit the sale, possession, and trade of live 
        horses for slaughter for human consumption.

SEC. 4. DEFINITIONS.

     For the purposes of this Act, the following definitions apply:
            (1) Euthanasia.--The term ``euthanasia'' means to kill an 
        animal humanely by means that immediately renders the animal 
        unconscious, with this state remaining until the animal's swift 
        death.
            (2) Export.--The term ``export'' means to take from any 
        place subject to the jurisdiction of the United States to a 
        place not subject to such jurisdiction, whether or not the 
        taking constitutes an exportation within the meaning of the 
        customs laws of the United States.
            (3) Horse.--The term ``horse'' means all members of the 
        equid family, including horses, ponies, donkeys, mules, asses, 
        and burros.
            (4) Horseflesh.--The term ``horseflesh'' means the flesh of 
        a dead horse, including the animal's viscera, skin, hair, hide, 
        hooves, and bones.
            (5) Human consumption.--The term ``human consumption'' 
        means ingestion by people as a source of food.
            (6) Import.--The term ``import'' means to bring into any 
        place subject to the jurisdiction of the United States from a 
        place not subject to such jurisdiction, whether or not the 
        bringing constitutes an importation within the meaning of the 
        customs laws of the United States.
            (7) Person.--The term ``person'' means--
                    (A) an individual, corporation, partnership, trust, 
                association, or other private entity;
                    (B) an officer, employee, agent, department, or 
                instrumentality of--
                            (i) the Federal Government; or
                            (ii) any State, municipality, or political 
                        subdivision of State; or
                    (C) any other entity subject to the jurisdiction of 
                the United States.
            (8) Secretary.--The term ``Secretary'' means the Secretary 
        of Agriculture.
            (9) Slaughter.--The term ``slaughter'' means the commercial 
        slaughter of one or more horses with the intent to sell, 
        barter, or trade the flesh for human consumption.
            (10) State.--The term ``State'' means the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Virgin Islands, Guam, the Commonwealth of the Northern Mariana 
        Islands, American Samoa, and any other territory, or possession 
        of the United States.
            (11) Transport.--The term ``transport'' means to move by 
        any means, or to receive or load onto a vehicle for the purpose 
        of movement.
            (12) United states.--The term ``United States'' means the 
        customs territory of the United States, as defined in general 
        note 2 of the Harmonized Tariff Schedule of the United States.

SEC. 5. PROHIBITED ACTS.

    (a) In General.--A person shall not--
            (1) slaughter a horse for human consumption;
            (2) import into, or export from, the United States 
        horseflesh for human consumption or live horses intended for 
        slaughter for human consumption;
            (3) sell or barter, offer to sell or barter, purchase, 
        possess, transport, deliver, or receive horseflesh for human 
        consumption or live horses intended for slaughter for human 
        consumption; or
            (4) solicit, request, or otherwise knowingly cause any act 
        prohibited under paragraph (1), (2), or (3).

SEC. 6. PENALTIES AND ENFORCEMENT.

    (a) Criminal Penalties.--A person who violates section 5 shall be 
fined under title 18, United States Code, imprisoned for not more than 
1 year, or both.
    (b) Civil Penalties.--
            (1) In general.--Any person who violates any provision of 
        section 5 shall, in addition to any other civil or criminal 
        penalty that may be imposed under title 18, United States Code, 
        or any other provision of law, be assessed, by the Secretary, a 
        civil penalty of not more than $5,000 but not less than $2,500, 
        and shall have confiscated all horses in that person's physical 
        or legal possession at the time of arrest, if said horses are 
        intended for slaughter.
            (2) Debarment.--The Secretary shall prohibit a person from 
        importing, exporting, transporting, trading, or selling horses 
        in the United States, if the Secretary finds that the person 
        has engaged in a pattern or practice of actions that has 
        resulted in a final judicial or administrative determination 
        with respect to the assessment of criminal or civil penalties 
        for violations of any provision of this Act
    (c) Notice; Hearing.--No monetary penalty may be assessed under 
this subsection against a person unless the person is given notice and 
opportunity for a hearing with respect to such violation in accordance 
with section 554 of title 5, United States Code.
    (d) Enforcement.--
            (1) Use of personnel.--The Secretary shall enforce this 
        Act, and may use, by agreement, the personnel, services, and 
        facilities of any other Federal, State, or local agency for the 
        purposes of enforcing this Act. For good cause shown, the 
        Secretary may remit or mitigate any civil penalty.
            (2) Execution of process; arrest; search; seizure.--Any 
        person authorized by the Secretary to enforce this Act may 
        execute any warrant or process issued by any officer or court 
        of competent jurisdiction to enforce this Act. Such a person so 
        authorized may, in addition to any other authority conferred by 
        law--
                    (A) with or without warrant or other process, 
                arrest any person committing in his presence or view a 
                violation of this Act or the regulations issued 
                thereunder;
                    (B) seize the cargo of any truck or other 
                conveyance used or employed to violate this Act or the 
                regulations issued hereunder or which reasonably 
                appears to have been so used or employed; and
                    (C) seize, whenever and wherever found, all horses 
                and horseflesh possessed in violation of this Act or 
                the regulations issued thereunder and dispose of them, 
                in accordance with this section and regulations 
                prescribed by the Secretary.
            (3) Placement of confiscated horses.--
                    (A) Temporary placement.--After confiscation of a 
                live horse pursuant to this Act, the arresting 
                authorities shall work with animal welfare societies 
                and animal control departments to ensure the temporary 
                placement of the horse with an animal rescue facility 
                that is an organization described in section 501(c)(3) 
                of the Internal Revenue Code of 1986 and is exempt from 
                taxation under section 501(a) of such Code, while the 
                person charged with violating this Act is prosecuted. 
                If placement at such a facility is not possible, the 
                arresting authorities shall work with animal welfare 
                societies and animal control departments to temporarily 
                place the horse with a facility that has as its primary 
                purpose the humane treatment of animals, or another 
                suitable location.
                    (B) Bonds.--
                            (i) Posting of bond.--The owner of a horse 
                        confiscated pursuant to this Act may prevent 
                        permanent placement of the horse by the 
                        facility that has temporary custody of the 
                        horse by posting a bond with the court in an 
                        amount the court determines is sufficient to 
                        provide for the necessary care and keeping of 
                        the horse for at least 60 days, including the 
                        day on which the horse was taken into custody. 
                        Such bond shall be filed with the court within 
                        10 days after the horse is confiscated. If a 
                        bond is not so posted, the custodial facility 
                        shall determine permanent placement of the 
                        horse in accordance with reasonable practices 
                        for the humane treatment of animals. If the 
                        animal has not yet been returned to the owner 
                        at the end of the time for which expenses are 
                        covered by the bond, and if the owner desires 
                        to prevent permanent placement of the animal by 
                        the custodial facility, the owner shall post a 
                        new bond with the court within ten days 
                        following the prior bond's expiration. If a new 
                        bond is not so posted, the custodial facility 
                        shall determine permanent placement of the 
                        horse in accordance with reasonable practices 
                        for the humane treatment of animals.
                            (ii) Costs for providing care for horse 
                        deducted from bond.--If a bond has been posted 
                        in accordance with clause (i), the custodial 
                        facility may draw from the bond the actual 
                        reasonable costs incurred by the facility in 
                        providing the necessary care and keeping of the 
                        confiscated horse from the date of the initial 
                        confiscation to the date of final disposition 
                        of the horse in the criminal action charging a 
                        violation of this Act.
                    (C) Permanent placement.--Any horse confiscated 
                pursuant to this Act and not returned to the owner 
                thereafter (except where otherwise provided in 
                paragraph (4)) shall be placed permanently with an 
                animal rescue facility or other suitable facility as 
                described in this section upon--
                            (i) the conviction of the horse's owner 
                        pursuant to this Act;
                            (ii) the owner's surrender of the horse;
                            (iii) the failure of the horse's owner to 
                        post a bond as required in accordance with 
                        subparagraph (B); or
                            (iv) the Secretary's inability to identify 
                        the owner.
            (4) Euthanasia of horses.--
                    (A) Emergency circumstances.--The Secretary or any 
                law enforcement individual charged with enforcing this 
                Act may order or perform the immediate euthanasia of 
                any horse in the field when such horse is injured 
                beyond recovery and suffering irreversibly. Methods 
                used shall be in accordance with the most recent Report 
                of the American Veterinary Medical Association's Panel 
                on Euthanasia (2000) and State and local laws and may 
                include gunshot, but shall not include electrocution or 
                penetrating captive bolt.
                    (B) Horses beyond recovery and unplaceable.--The 
                Secretary or any individual charged with enforcing this 
                Act may order the euthanasia of any confiscated horse 
                when injured, disabled, or diseased beyond recovery or 
                when placement at an animal rescue facility or other 
                suitable facility, as described in this section, is not 
                possible within 90 days of any circumstance as 
                described in section 6(d)(3)(C). An equine or large-
                animal veterinarian shall perform the euthanasia rated 
                ``Acceptable'' for horses in the most recent Report of 
                the American Veterinary Medical Association's Panel on 
                Euthanasia (2000), but shall not include penetrating 
                captive bolt, electrocution, gunshot, or other non-
                chemical means.
    (e) Funding of Animal Rescue Facilities.--
            (1) Grants.--To the extent that funds are made available 
        for this purpose by Acts of appropriation, the Secretary shall 
        make grants to animal rescue facilities described in this 
        section that have given adequate assurances to the Secretary 
        that they are willing to accept horses confiscated pursuant to 
        this Act.
            (2) Penalties, fines, and forfeited property.--Amounts 
        received as penalties, fines, or forfeited property under this 
        Act shall be used for the care of any live horses seized from 
        violators of this Act and taken into the possession of the 
        United States or placed with an animal rescue facility as 
        described in this section.
    (f) Calculation of Violations.--For purposes of this section, a 
separate offense shall be calculated as follows:
            (1) Each live horse transported, traded, slaughtered, or 
        possessed in violation of this Act shall constitute a separate 
        offense.
            (2) Every four hundred pounds or less of confiscated 
        horseflesh shall constitute a separate offense.

SEC. 7. REPORT ON ENFORCEMENT EFFORTS.

     Not later than 2 years after the date of the enactment of this 
Act, and on an annual basis thereafter, the Secretary shall submit a 
report to Congress on the efforts of the United States Government to 
enforce the provisions of this Act and the adequacy of the resources to 
do so.

SEC. 8. EXEMPTIONS.

    (a) In General.--Except as provided in section 5, nothing in this 
Act shall be construed to affect the regulation by any State of its 
horse population.
    (b) Exception for Designated Law Enforcement Official Purposes.--A 
person described in section 4(7)(B) may engage in activities described 
in paragraphs (2), (3), and (4) of section 5 solely for purposes of 
enforcing this Act.

SEC. 9. DATE OF ENFORCEMENT.

     This Act shall take effect one year after the date of the 
enactment of this Act.
The American Horse Slaughter Prevention Act - Prohibits a person from: (1) slaughtering a horse for human consumption; (2) importing to, or exporting from, the United States horseflesh or horses for human consumption; (3) selling, bartering, transferring, receiving, or distributing horseflesh or horses for human consumption; or (4) soliciting or knowingly causing any such actions.Sets forth provisions respecting: (1) criminal and civil penalties; (2) enforcement authority of the Secretary of Agriculture; (3) placement of confiscated horses; (4) euthanasia of unplaceable or severely injured or diseased horses; (4) funding of animal rescue facilities; and (5) exemptions.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Loan Repayment Assistance 
Act of 2014''.

SEC. 2. RESTORATION AND AN OPTION TO EXTEND THE START OF THE REPAYMENT 
              PERIOD OF CERTAIN FEDERAL DIRECT LOANS.

    (a) Restoration of Interest Subsidy During First 6-Month Grace 
Period.--Section 428(a)(3)(A)(i)(I) of the Higher Education Act of 1965 
(20 U.S.C. 1078(a)(3)(A)(i)(I)) is amended by inserting ``or, for a 
Federal Direct Stafford Loan for which the first disbursement is made 
on or after July 1, 2013, which accrues prior to the beginning of the 
repayment period of the loan (except for interest which accrues during 
the last 6 months prior to the beginning of such period, in the case of 
a student who makes an election under section 2(b)(2) of the Student 
Loan Repayment Assistance Act of 2014),'' before ``, or''.
    (b) Grace-Period Extension.--
            (1) Amendment.--Section 428(b)(7) of the Higher Education 
        Act of 1965 (20 U.S.C. 1078(b)(7)) is amended--
                    (A) in subparagraph (A), by inserting ``or, in the 
                case of a student who makes an election under section 
                2(b)(2) of the Student Loan Repayment Assistance Act of 
                2014, 12 months'' after ``6 months''; and
                    (B) in subparagraph (D), by inserting ``or, in the 
                case of a student who makes an election under section 
                2(b)(2) of the Student Loan Repayment Assistance Act of 
                2014, the 12-month period'' after ``6-month period''.
            (2) Election of extended grace period for certain fdsl and 
        fdus loans.--If the unemployment rate calculated by the Bureau 
        of Labor Statistics is greater than the natural rate of 
        unemployment (as established by the Board of Governors of the 
        Federal Reserve System), the Secretary of Education shall 
        provide an opportunity for each borrower who has a Federal 
        Direct Stafford Loan or Federal Direct Unsubsidized Stafford 
        Loan for which the first disbursement is made on or after July 
        1, 2013, to elect a 12-month grace period, in accordance with 
        section 428(b)(7) of the Higher Education Act of 1965, as 
        amended by this subsection, before beginning repayment. The 
        Secretary shall--
                    (A) notify each such borrower of the opportunity 
                for such an election not later than 45 days before the 
                start of the borrower's repayment period, as determined 
                under section 428(b)(7) of the Higher Education Act of 
                1965 as in effect on the day before the date of 
                enactment of this Act;
                    (B) advise each such borrower of the financial 
                consequences of electing such 12-month grace period; 
                and
                    (C) not require such a borrower to accept a 12-
                month grace period in accordance with section 428(b)(7) 
                of the Higher Education Act of 1965 (as amended by this 
                subsection), unless the borrower specifically elects 
                such 12-month grace period not later than 14 days 
                before the start of the borrower's repayment period, as 
                determined under section 428(b)(7) of the Higher 
                Education Act of 1965 as in effect on the day before 
                the date of enactment of this Act.

SEC. 3. EXCLUSION FROM GROSS INCOME OF BENEFITS UNDER CERTAIN 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:

``SEC. 127A. STUDENT LOAN PAYMENT ASSISTANCE PROGRAMS.

    ``(a) In General.--Gross income of a qualified employee does not 
include amounts paid or incurred by the employer for student loan 
payment assistance provided to such employee if the assistance is 
furnished pursuant to a program which is described in subsection (c).
    ``(b) Qualified Employee.--For purposes of this subsection, the 
term `qualified employee' means any employee who contributes (in 
addition to any amount excluded from gross income under this section) 
not less than $50 per month for payment of principal and interest on 
the loans subject to the student loan payment assistance program.
    ``(c) Limitations.--
            ``(1) Assistance limitation.--The amount taken into account 
        under subsection (a) with respect to an individual for student 
        loan assistance with respect to student loan payments during a 
        taxable year shall not exceed $6,000.
            ``(2) Earned income limitation.--The amount excluded from 
        the income of an employee under subsection (a) for any taxable 
        year shall not exceed the earned income of such employee for 
        such taxable year.
    ``(d) Student Loan Payment Assistance Program.--
            ``(1) In general.--For purposes of this section a student 
        loan payment assistance program is a separate written plan of 
        an employer for the exclusive benefit of his employees to 
        provide such employees with student loan payment assistance 
        which meets the requirements of paragraphs (2) through (10) of 
        this subsection. If any plan would qualify as a student loan 
        payment assistance program but for a failure to meet the 
        requirements of this subsection, then, notwithstanding such 
        failure, such plan shall be treated as a student loan payment 
        assistance program in the case of employees who are not highly 
        compensated employees.
            ``(2) Discrimination.--The contributions or benefits 
        provided under the plan shall not discriminate in favor of 
        employees who are highly compensated employees (within the 
        meaning of section 414(q)).
            ``(3) Eligibility.--The program shall benefit employees who 
        qualify under a classification set up by the employer and found 
        by the Secretary not to be discriminatory in favor of employees 
        described in paragraph (2).
            ``(4) Principal shareholders or owners.--Not more than 25 
        percent of the amounts paid or incurred by the employer for 
        student loan payment assistance during the year may be provided 
        for the class of individuals who are shareholders or owners (or 
        their spouses or dependents), each of whom (on any day of the 
        year) owns more than 5 percent of the stock or of the capital 
        or profits interest in the employer.
            ``(5) No funding required.--A program referred to in 
        paragraph (1) is not required to be funded.
            ``(6) Notification of eligible employees.--Reasonable 
        notification of the availability and terms of the program shall 
        be provided to eligible employees.
            ``(7) Statement of expenses.--The plan shall furnish to an 
        employee, on or before January 31, a written statement showing 
        the amounts paid or expenses incurred by the employer in 
        providing student loan payment assistance to such employee 
        during the previous calendar year.
            ``(8) Benefits.--
                    ``(A) In general.--A plan meets the requirements of 
                this paragraph if the average benefits provided to 
                employees who are not highly compensated employees 
                under all plans of the employer is at least 55 percent 
                of the average benefits provided to highly compensated 
                employees under all plans of the employer.
                    ``(B) Salary reduction agreements.--For purposes of 
                subparagraph (A), in the case of any benefits provided 
                through a salary reduction agreement, a plan may 
                disregard any employees whose compensation is less than 
                $25,000. For purposes of this subparagraph, the term 
                `compensation' has the meaning given such term by 
                section 414(q)(4), except that, under rules prescribed 
                by the Secretary, an employer may elect to determine 
                compensation on any other basis which does not 
                discriminate in favor of highly compensated employees.
            ``(9) Contributions made directly to lender.--A plan meets 
        the requirements of this paragraph if all benefits provided 
        under the plan are paid directly to the holder of the 
        indebtedness referred to in subsection (d)(1)(A)(i).
            ``(10) Matching contributions.--A plan which meets the 
        requirements of paragraphs (2) through (9) shall not fail to be 
        treated as a program described in this subsection merely 
        because such plan provides for the employer to make matching 
        contributions with respect to employee contributions.
    ``(e) Definitions and Special Rules.--For purposes of this 
section--
            ``(1) Student loan payment assistance.--
                    ``(A) In general.--The term `student loan payment 
                assistance' means the payment of principal or interest 
                on--
                            ``(i) any indebtedness incurred by the 
                        employee solely to pay qualified higher 
                        education expenses (as defined in section 221) 
                        which--
                                    ``(I) are paid or incurred within a 
                                reasonable period of time before or 
                                after the indebtedness was incurred, 
                                and
                                    ``(II) are attributable to 
                                education furnished during a period 
                                during which the employee was an 
                                eligible student, or
                            ``(ii) any indebtedness used to refinance 
                        indebtedness described in clause (i).
                Such term shall not include any payment of principal or 
                interest on indebtedness owed to a person who is 
                related (within the meaning of section 267(b) or 
                707(b)(1)) to the taxpayer or to any person by reason 
                of a loan under any qualified employer plan (as defined 
                in section 72(p)(4)) or under any contract referred to 
                in section 72(p)(5).
                    ``(B) Eligible student.--The term `eligible 
                student' has the meaning given such term by section 
                25A(b)(3).
                    ``(C) Dependent.--The term `dependent' has the 
                meaning given such term by section 152 (determined 
                without regard to subsections (b)(1), (b)(2), and 
                (d)(1)(B) thereof).
            ``(2) Earned income.--The term `earned income' shall have 
        the meaning given such term in section 32(c)(2), but such term 
        shall not include any amounts paid or incurred by an employer 
        for student loan payment assistance to an employee.
            ``(3) Employee.--The term `employee' includes, for any 
        year, an individual who is an employee within the meaning of 
        section 401(c)(1) (relating to self-employed individuals).
            ``(4) Employer.--An individual who owns the entire interest 
        in an unincorporated trade or business shall be treated as his 
        own employer. A partnership shall be treated as the employer of 
        each partner who is an employee within the meaning of paragraph 
        (3).
            ``(5) Attribution rules.--
                    ``(A) Ownership of stock.--Ownership of stock in a 
                corporation shall be determined in accordance with the 
                rules provided under subsections (d) and (e) of section 
                1563 (without regard to section 1563(e)(3)(C)).
                    ``(B) Interest in unincorporated trade or 
                business.--The interest of an employee in a trade or 
                business which is not incorporated shall be determined 
                in accordance with regulations prescribed by the 
                Secretary, which shall be based on principles similar 
                to the principles which apply in the case of 
                subparagraph (A).
            ``(6) Utilization test not applicable.--A student loan 
        payment assistance program shall not be held or considered to 
        fail to meet any requirements of subsection (c) (other than 
        paragraphs (4) and (8) thereof) merely because of utilization 
        rates for the different types of assistance made available 
        under the program.
            ``(7) Disallowance of excluded amounts as credit or 
        deduction.--No deduction or credit shall be allowed to the 
        employee under any other section of this chapter for any amount 
        excluded from the gross income of the employee by reason of 
        this section.
            ``(8) Treatment of salary reduction amounts.--Any matching 
        contribution withheld from an employee under a student loan 
        payment assistance program pursuant to a salary reduction 
        agreement shall be treated for purposes of this title as an 
        amount paid by the employee and not as an amount paid by the 
        employer.''.
    (b) Conforming Amendments.--Sections 221(d)(2)(A), 414 (n)(3)(C) 
and (t)(2), 3121(a)(18), 3306(b)(13), 3401(a)(18), and 6039D(d)(1) of 
such Code are each amended by inserting ``127A,'' after ``127,''.
    (c) 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. Student loan payment assistance programs.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

SEC. 4. DEDUCTION FOR STUDENT LOAN PAYMENTS WHICH ARE MATCHED BY AN 
              EMPLOYER.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 is amended by redesignating section 224 
as section 225 and by inserting after section 223 the following new 
section:

``SEC. 224. DEDUCTION FOR STUDENT LOAN PAYMENTS WHICH ARE MATCHED BY AN 
              EMPLOYER.

    ``(a) In General.--In the case of an individual who is a qualified 
employee (as defined in section 127A), there shall be allowed as a 
deduction an amount equal to the student loan payments made by such 
individual with respect to which an employer of such individual makes 
matching contributions under a student loan payment assistance program 
which are excludible from the gross income of such employee under 
section 127A.
    ``(b) Annual Limitation.--The amount allowable as a deduction under 
subsection (a) with respect to any individual for any taxable year 
shall not exceed $6,000.
    ``(c) Lifetime Limitation.--The amount allowable as a deduction 
under subsection (a) with respect to any individual for any taxable 
year shall not exceed the excess of--
            ``(1) $50,000, over
            ``(2) the aggregate amount allowable as a deduction under 
        subsection (a) with respect to such individual for all prior 
        taxable years.
    ``(d) Denial of Double Benefit.--Any amount excluded from the gross 
income of an individual under section 127A shall not be treated as an 
amount paid by such individual for purposes of this section. The amount 
of principal and interest with respect to which a deduction is allowed 
under this section shall not be taken into account in determining the 
amount of any other deduction or credit allowed under this chapter.''.
    (b) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by redesignating the 
item relating to section 224 as an item relating to section 225 and by 
inserting after the item relating to section 223 the following new 
item:

``Sec. 224. Deduction for student loan payments which are matched by an 
                            employer.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

Student Loan Repayment Assistance Act of 2014 - Amends title IV (Student Assistance) of the Higher Education Act of 1965 to allow borrowers of William D. Ford Federal Direct Stafford Loans to opt to extend the period before they must begin to repay such loans to one year after they cease to carry at least one-half the normal full-time academic workload if the unemployment rate is greater than the natural rate of employment (as established by the Board of Governors of the Federal Reserve System). (Currently, the repayment period for Direct Stafford Loans begins six months after borrowers cease to carry at least one-half the normal full-time academic workload.) Subsidizes the interest that accrues on Direct Stafford Loans for the first six months of that extended grace period. Makes this Act applicable to Direct Stafford Loans first disbursed on or after July 1, 2013. Amends the Internal Revenue Code to exclude from the gross income of an employee amounts paid by an employer under a student loan payment assistance program. Requires participating employees to pay at least $50 per month on their student loans (in addition to the amount excluded from their gross income under such program). Limits the amount of such exclusion to $6,000 in a taxable year.  Requires an employer student loan payment assistance program to be a separate written plan of an employer to provide employees with student loan payment assistance. Defines &quot;student loan payment assistance&quot; as the payment of principal or interest on any indebtedness incurred by an employee solely to pay qualified higher education expenses that are paid or incurred within a reasonable time before or after such indebtedness was incurred and that are attributable to education furnished during a period in which such employee was a student eligible for federal financial assistance. Allows an employee to take an income tax deduction in an amount equal to the employee's student loan payments that are matched by excludible employer contributions under a student loan payment assistance program. Limits the amount of such deduction to $6,000 in a taxable year and $50,000 over a lifetime.