[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 959 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 959

  To amend the Internal Revenue Code of 1986 to restore the prior law 
exclusion for scholarships and fellowships and to restore the deduction 
                   for interest on educational loans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 17, 1993

     Mr. Price (for himself, Mr. Lancaster, Mr. Cox, Mr. Frank of 
  Massachusetts, Mr. Hefner, Mr. Schumer, Mr. Baker of Louisiana, Mr. 
Mineta, Mr. Penny, Mr. Miller of California, Mr. Rangel, Mr. Martinez, 
  Mr. Sanders, Mr. Walsh, Mr. Studds, Mrs. Clayton, Mr. Slattery, Mr. 
  Richardson, Mr. Boucher, Mr. Livingston, Mr. Thomas of Wyoming, Mr. 
  Watt, Mr. Kanjorski, Mr. Gonzalez, Mr. Ackerman, Mrs. Morella, Mrs. 
Collins of Illinois, Mr. Bryant, Mr. Hughes, Ms. Long, Mrs. Lowey, Mr. 
    Skaggs, Ms. Slaughter, Mr. Coleman, Mr. LaRocco, Mr. Frost, Mr. 
Hochbrueckner, Mr. Durbin, Mr. Neal of North Carolina, Mr. Parker, Mr. 
 Valentine, Mr. Washington, Mr. Stokes, Mr. Rohrabacher, Mr. Young of 
Florida, Mr. Andrews of Maine, Ms. Pelosi, Mr. Sawyer, Mr. Clement, Mr. 
 Emerson, Mr. Bacchus of Florida, Mr. Evans, Mr. Wyden, Mr. Engel, Mr. 
  Cramer, Mr. Abercrombie, Ms. DeLauro, Mr. DeFazio, Ms. Norton, Mr. 
Ravenel, Mr. Owens, Miss Collins of Michigan, Mr. Filner, Mr. LaFalce, 
  Mr. Vento, Mr. Johnson of South Dakota, Mr. Weldon, Mr. Bartlett of 
  Maryland, and Mr. Tucker) introduced the following bill; which was 
              referred to the Committee on Ways and Means

                             March 23, 1993

     Additional sponsors: Mr. Glickman, Mrs. Mink, Mrs. Byrne, Mr. 
 Strickland, Ms. Cantwell, Mr. Schiff, Mr. Inslee, Mr. Towns, Mr. Ford 
 of Michigan, Ms. Furse, Mr. Fish, Mr. Berman, Mr. Romero-Barcelo, and 
                              Mr. Hinchey

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to restore the prior law 
exclusion for scholarships and fellowships and to restore the deduction 
                   for interest on educational loans.

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

SECTION 1. RESTORATION OF PRIOR LAW EXCLUSION FOR SCHOLARSHIPS AND 
              FELLOWSHIPS.

    Section 123 of the Tax Reform Act of 1986 (relating to 
scholarships), and the amendments made by such section, are hereby 
repealed; and the Internal Revenue Code of 1986 shall be applied and 
administered as if such section, and amendments, had never been 
enacted.

SEC. 2. RESTORATION OF DEDUCTION FOR INTEREST ON EDUCATIONAL LOANS.

    (a) In General.--Paragraph (2) of section 163(h) of the Internal 
Revenue Code of 1986 (defining personal interest) is amended by 
striking ``and'' at the end of subparagraph (D), by redesignating 
subparagraph (E) as subparagraph (F), and by inserting after 
subparagraph (D) the following new subparagraph:
                    ``(E) any interest on a qualified educational loan, 
                and''.
    (b) Qualified Educational Loan Defined.--Subsection (h) of section 
163 of such Code is amended by striking paragraph (5) and inserting the 
following new paragraph:
            ``(5) Qualified educational loan.--For purposes of this 
        subsection--
                    ``(A) In general.--The term `qualified educational 
                loan' means any indebtedness incurred to pay qualified 
                educational expenses which are paid or incurred within 
                a reasonable period of time before or after the 
                indebtedness is incurred.
                    ``(B) Qualified educational expenses.--For purposes 
                of this paragraph--
                            ``(i) In general.--The term `qualified 
                        educational expenses' means qualified tuition 
                        and related expenses of the taxpayer, his 
                        spouse, or a dependent for attendance at an 
                        educational institution described in section 
                        170(b)(1)(A)(ii).
                            (ii) ``Qualified tuition and related 
                        expenses.--The term `qualified tuition and 
                        related expenses' means--
                                    ``(I) tuition and fees required for 
                                enrollment or attendance at an 
                                educational institution described in 
                                section 170(b)(1)(A)(ii),
                                    ``(II) fees, books, supplies, and 
                                equipment required for courses of 
                                instruction at such an institution, and
                                    ``(III) reasonable living expenses 
                                while away from home.
                    ``(C) Dependent.--For purposes of this paragraph, 
                the term `dependent' has the meaning given such term by 
                section 152.
                    ``(D) Coordination with paragraph (3)(C)(ii).--Any 
                qualified educational loan shall not be taken into 
                account for purposes of applying the limitation of 
                paragraph (3)(C)(ii).''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 1986.

                                 <all>