[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3893 Introduced in House (IH)]







107th CONGRESS
  2d Session
                                H. R. 3893

To amend the Internal Revenue Code of 1986 to exclude from gross income 
amounts paid on behalf of Federal employees under Federal student loan 
                          repayment programs.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 7, 2002

Mr. Burton of Indiana (for himself, Mr. Waxman, Mr. Davis of Illinois, 
Mrs. Morella, Mr. Tierney, Mr. Cummings, and Ms. Norton) 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 exclude from gross income 
amounts paid on behalf of Federal employees under Federal student loan 
                          repayment programs.

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

SECTION 1. EXCLUSION FOR STUDENT LOAN REPAYMENTS BY THE FEDERAL 
              GOVERNMENT.

    (a) Exclusion From Gross Income.--Section 108(f) of the Internal 
Revenue Code of 1986 (relating to student loans) is amended by adding 
at the end the following:
            ``(4) Student loan repayments by federal government.--In 
        the case of an individual, gross income does not include any 
        payments made by the Federal Government on behalf of such 
        individual under section 5379 of title 5, United States 
        Code.''.
    (b) Exclusion From Wages.--
            (1) In general.--Section 3121(a) of such Code (defining 
        wages) is amended--
                    (A) in paragraph (20) by striking ``or'' at the 
                end;
                    (B) in paragraph (21) by striking the period at the 
                end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(22) any payment excluded from gross income under section 
        108(f)(4) (relating to student loan repayments by Federal 
        Government).''.
            (2) Social security act.--Section 209(a) of the Social 
        Security Act (42 U.S.C. 409(a)) is amended by adding at the end 
        the following:
            ``(19) Any payment excluded from gross income under section 
        108(f)(4) of the Internal Revenue Code of 1986 (relating to 
        student loan repayments by Federal Government).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments made in taxable years beginning after December 31, 
2001.
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