[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2226 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2226

  To amend the Internal Revenue Code of 1986 to restore the pre-1986 
           exclusion for scholarships for degree candidates.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 20, 1993

 Mr. Lewis of Florida (for himself, Mr. Doolittle, Mr. Towns, and Mr. 
    Walsh) introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to restore the pre-1986 
           exclusion for scholarships for degree candidates.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. RESTORATION OF PRE-1986 EXCLUSION FOR SCHOLARSHIPS FOR 
              DEGREE CANDIDATES.

    (a) In General.--Section 117 of the Internal Revenue Code of 1986 
(relating to qualified scholarships) is amended by striking all that 
precedes subsection (d) and inserting the following:

``SEC. 117. SCHOLARSHIPS AND FELLOWSHIP GRANTS.

    ``(a) General Rule.--In the case of an individual who is a 
candidate for a degree at an educational organization described in 
section 170(b)(1)(A)(ii), gross income does not include--
            ``(1) any amount received--
                    ``(A) as a scholarship at such an organization, or
                    ``(B) as a fellowship grant,
        including the value of contributed services and accommodations; 
        and
            ``(2) any amount received to cover expenses for--
                    ``(A) travel
                    ``(B) research,
                    ``(C) clerical help, or
                    ``(D) equipment,
        which are incident to such a scholarship or to a fellowship 
        grant, but only to the extent that the amount is so expended by 
        the recipient.
    ``(b) Limitation.--Subsections (a) and (c) shall not apply to that 
portion of any amount received which represents payment for teaching, 
research, or other services in the nature of part-time employment 
required as a condition to receiving the scholarship or the fellowship 
grant. If the teaching, research, or other services are required of all 
candidates (whether or not recipients of scholarships or fellowship 
grants) for a particular degree as a condition to receiving such 
degree, such teaching, research, or other services shall not be 
regarded as part-time employment within the meaning of this 
subsection.''
    (b) Technical Amendments.--
            (1) Subsection (d) of section 117 of such Code is 
        redesignated as subsection (c).
            (2) The item relating to section 117 in the table of 
        sections for part III of subchapter B of chapter 1 of such Code 
        is amended to read as follows:

                              ``Sec. 117. Scholarships and fellowship 
                                        grants.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.

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