113 S2827 IS: Make Student Grants Truly Tax-Free Act U.S. Senate 2014-09-16 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

II 113th CONGRESS2d Session S. 2827 IN THE SENATE OF THE UNITED STATES September 16, 2014 Mr. Blumenthal (for himself and Mr. Murphy) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend section 117 of the Internal Revenue Code of 1986 to exclude Federal student aid from taxable gross income.

1.

Short title

This Act may be cited as the Make Student Grants Truly Tax-Free Act.

2.

Expansion of qualified scholarship exclusion from gross income

(a)

In general

Paragraph (1) of section 117(b) of the Internal Revenue Code of 1986 is amended—(1)by striking received by an individual as a scholarship and insertingreceived by an individual—(A)as a scholarship,(2)by striking the period at the end and inserting a comma, and(3)by adding at the end the following new subparagraphs:(B)through a scholarship or fellowship grant program administered by the Secretary of Education that is based on financial need, including a Federal Pell Grant under section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a), or(C)as an Iraq and Afghanistan Service Grant under section 420R of the Higher Education Act of 1965 (20 U.S.C. 1070h)..(b)

Effective date

The amendments made by this Act shall apply to taxable years beginning after December 31, 2014.