Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Input: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Student Loan Repayment Act of
2016''.

SEC. 2. INCLUSION OF STUDENT LOAN REPAYERS FOR PURPOSES OF WORK
OPPORTUNITY CREDIT.

(a) In General.--Section 51(d)(1) of the Internal Revenue Code of
1986 is amended by striking ''or'' at the end of subparagraph (I), by
striking the period at the end of subparagraph (J) and inserting '',
or'', and by adding at the end the following new subparagraph:
''(K) a qualified student loan repayer.''.
(b) Qualified Student Loan Repayer Defined.--Section 51(d) of such
Code is amended by adding at the end the following new paragraph:
''(16) Qualified student loan repayer.--The term 'qualified
student loan repayer' means any individual who is certified by
the designated local agency as--
''(A) having at least an associate's degree; and
''(B) having outstanding qualified education loans
(as defined in section 221) of not less than
$10,000.''.
(c) Effective Date.--The amendments made by this section shall
apply with respect to individuals who begin work for the employer after
the date of the enactment of this Act.

SEC. 3. STUDENT LOAN PROGRAM STARTUP COSTS CREDIT.

(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:

''SECTION 45S. STUDENT LOAN PROGRAM STARTUP COSTS CREDIT.

''(a) In General.--For purposes of section 38, in the case of an
eligible employer, the student loan program startup costs credit
determined under this section for any taxable year is an amount equal
to 50 percent of the qualified startup costs paid or incurred by the
taxpayer during the taxable year.
''(b) Dollar Limitation.--The amount of the credit determined under
this section for any taxable year for a qualified employer shall not
exceed--
''(1) for the first credit year and each of the 2 taxable
years immediately following the first credit year, the product
of--
''(A) $500, multiplied by
''(B) the number of employees participating during
such taxable year in an eligible employer plan for
which the employer is eligible for a credit under this
section, and
''(2) for any other taxable year, zero.
''(c) Eligible Employer.--For purposes of this section, the term
'eligible employer' means an employer if such employer, or any member
of any controlled group including the employer (or any predecessor of
either), during the 3-taxable-year period immediately preceding the 1st
taxable year for which the credit under this section is otherwise
allowable for a qualified employer plan of the employer, has not
established or maintained a qualified employer plan with respect to
which contributions were made, or benefits were accrued, for
substantially the same employees as are in the qualified employer plan.
''(d) Other Definitions.--For purposes of this section--
''(1) Qualified startup costs.--
''(A) In general.--The term 'qualified startup
costs' means any ordinary and necessary expenses of an
eligible employer which are paid or incurred in
connection with the establishment or administration of
an eligible employer plan. Such term shall not include
any payment made to, or on behalf of, any employee
pursuant to such plan.
''(B) Plan must have at least 1 participant.--Such
term shall not include any expense in connection with a
plan that does not have at least 1 employee eligible to
participate who is not a highly compensated employee.
''(2) Eligible employer plan.--The term 'eligible employer
plan' means a student loan repayment plan administered by an
employer through which the employer provides, for each employee
for each year, qualified matching contributions.
''(3) Qualified matching contribution.--The term 'qualified
matching contribution' means an employer contribution made to
an eligible employer plan on behalf of an employee on account
of an employee contribution made by such employee if such
employer contribution is at least the lesser of--
''(A) the amount of such employee contribution, and
''(B) $2,000.
''(4) First credit year.--The term 'first credit year'
means--
''(A) the taxable year which includes the date that
the eligible employer plan to which such costs relate
becomes effective, or
''(B) at the election of the eligible employer, the
taxable year preceding the taxable year referred to in
subparagraph (A).
''(e) Special Rules.--For purposes of this section--
''(1) Aggregation rules.--All persons treated as a single
employer under subsection (a) or (b) of section 52, or
subsection (m) or (o) of section 414, shall be treated as one
person. All eligible employer plans shall be treated as 1
eligible employer plan.
''(2) Disallowance of deduction.--No deduction shall be
allowed for that portion of the qualified startup costs paid or
incurred for the taxable year which is equal to the credit
determined under subsection (a).
''(3) Deduction for matching contribution.--For deductions
for qualified matching contributions, see section 162.
''(4) Election not to claim credit.--This section shall not
apply to a taxpayer for any taxable year if such taxpayer
elects to have this section not apply for such taxable year.''.
(b) Conforming Amendments.--
(1) In general.--Subsection (b) of section 38 is amended by
striking ''plus'' at the end of paragraph (35), by striking the
period at the end of paragraph (36) and inserting '', plus'',
and by adding at the end the following new paragraph:
''(37) the student loan program startup costs credit
determined under section 45S(a).''.
(2) Deduction for unused credit.--Subsection (c) of section
196 is amended by striking ''and'' at the end of paragraph
(13), by striking the period at the end of paragraph (14) and
inserting '', and'', and by adding at the end the following new
paragraph:
''(15) the student loan program startup costs
credit determined under section 45S(a).''.
(c) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended by adding at the end
the following new item:

''Sec. 45S. Student loan program startup costs credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2016.
Output:
Student Loan Repayment Act of 2016 This bill amends the Internal Revenue Code to allow a work opportunity tax credit for employers who hire a qualified student loan repayer. A "qualified student loan repayer" is any individual who is certified by the designated local agency as: (1) having at least an associate's degree, and (2) having outstanding education loans of at least $10,000. The bill also allows a business tax credit equal to 50% of the student loan program startup costs paid by employers during the year, subject to a limit of $500 per employee participating in the program. The credit applies to the ordinary and necessary expenses for the establishment or administration of a student loan repayment plan through which the employer provides specified annual matching contributions to each employee. The credit does not apply to payments made to, or on behalf of, any employee pursuant to the plan. An employer may claim the credit for three years if the employer has not established or maintained a plan for substantially the same employees during the three-year period immediately preceding the first year in which the credit is otherwise allowable.