Income-Based Repayment Debt Forgiveness Act

II 116TH CONGRESS 1ST SESSION S. 1248 To exclude the discharge of certain Federal student loans from the calculation of gross income. IN THE SENATE OF THE UNITED STATES APRIL 30, 2019 Mr. MERKLEY (for himself and Mr. WYDEN) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To exclude the discharge of certain Federal student loans from the calculation of gross income. 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 ‘‘Income-Based Repay- 4 ment Debt Forgiveness Act’’. 5 SEC. 2. FORGIVENESS OF CERTAIN FEDERAL STUDENT 6 LOANS EXCLUDED FROM INCOME TAX. 7 (a) IN GENERAL.—Paragraph (1) of section 108(f) 8 of the Internal Revenue Code of 1986 is amended by strik- 9 VerDate Sep 11 2014 23:10 May 03, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1248.IS S1248 kjohnson on DSK79L0C42 with BILLS 2 •S 1248 IS ing ‘‘any student loan if’’ and all that follows and inserting 1 ‘‘any student loan if— 2 ‘‘(A) such discharge was pursuant to a 3 provision of such loan under which all or part 4 of the indebtedness of the individual would be 5 discharged if the individual worked for a certain 6 period of time in certain professions for any of 7 a broad class of employers, or 8 ‘‘(B) in the case of a loan made by the 9 United States or an instrumentality or agency 10 thereof, such discharge was pursuant to any 11 Federal program or provision of Federal law 12 which provides for income contingent or in- 13 come-based repayment of such loan.’’. 14 (b) EFFECTIVE DATE.—The amendment made by 15 subsection (a) shall apply to discharges of loans that occur 16 on or after July 1, 2020. 17 Æ VerDate Sep 11 2014 23:10 May 03, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6301 E:\BILLS\S1248.IS S1248 kjohnson on DSK79L0C42 with BILLS