Student Loan Interest Tax Deduction Expansion Act

I 116TH CONGRESS 1ST SESSION H. R. 1070 To amend the Internal Revenue Code of 1986 to increase the dollar and income limitations on the deduction for student loan interest. IN THE HOUSE OF REPRESENTATIVES FEBRUARY 7, 2019 Mr. CICILLINE (for himself and Mr. BRENDAN F. BOYLE of Pennsylvania) in- troduced the following bill; which was referred to the Committee on Ways and Means A BILL To amend the Internal Revenue Code of 1986 to increase the dollar and income limitations on the deduction for student loan interest. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Student Loan Interest 4 Tax Deduction Expansion Act’’. 5 VerDate Sep 11 2014 00:57 Feb 20, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H1070.IH H1070 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 1070 IH SEC. 2. INCREASE IN DOLLAR LIMITATION AND INCOME 1 LIMITATION ON STUDENT LOAN INTEREST 2 DEDUCTION. 3 (a) INCREASE IN DOLLAR LIMITATION ON STUDENT 4 LOAN INTEREST DEDUCTION.—Paragraph (1) of section 5 221(b) of the Internal Revenue Code of 1986 is amended 6 by striking ‘‘$2,500’’ and inserting ‘‘$7,500 ($15,000 in 7 the case of a joint return)’’. 8 (b) INCREASE IN INCOME LIMITATION ON STUDENT 9 LOAN INTEREST DEDUCTION.—Paragraph (2) of section 10 221(b) of such Code is amended to read as follows: 11 ‘‘(2) LIMITATION BASED ON MODIFIED AD- 12 JUSTED GROSS INCOME.— 13 ‘‘(A) IN GENERAL.—No deduction shall be 14 allowed under subsection (a) to a taxpayer with 15 a modified adjusted gross income in excess of 16 $100,000 (twice such amount in the case of a 17 joint return). 18 ‘‘(B) MODIFIED ADJUSTED GROSS IN- 19 COME.—The term ‘modified adjusted gross in- 20 come’ means adjusted gross income deter- 21 mined— 22 ‘‘(i) without regard to this section and 23 sections 199, 222, 911, 931, and 933, and 24 ‘‘(ii) after application of sections 86, 25 135, 137, 219, and 469.’’. 26 VerDate Sep 11 2014 00:57 Feb 20, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1070.IH H1070 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 1070 IH (c) CONFORMING AMENDMENT.—Paragraph (1) of 1 section 221(f) of such Code is amended to read as follows: 2 ‘‘(1) IN GENERAL.—In the case of a taxable 3 year beginning after 2020, the $100,000 amount in 4 subsection (b)(2)(A) shall each be increased by an 5 amount equal to— 6 ‘‘(A) such dollar amount, multiplied by 7 ‘‘(B) the cost-of-living adjustment deter- 8 mined under section 1(f)(3) for the calendar 9 year in which the taxable year begins, deter- 10 mined by substituting ‘calendar year 2019’ for 11 ‘calendar year 2016’ in subparagraph (A)(ii) 12 thereof.’’. 13 (d) EFFECTIVE DATE.—The amendments made by 14 this section shall apply to taxable years ending after De- 15 cember 31, 2019. 16 Æ VerDate Sep 11 2014 00:57 Feb 20, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H1070.IH H1070 pamtmann on DSKBFK8HB2PROD with BILLS