[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 678 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 678

 To amend the Internal Revenue Code of 1986 to increase the amount of 
  the student loan interest deduction and to allow more taxpayers to 
                         claim that deduction.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 14, 2001

  Mrs. McCarthy of New York (for herself, Mr. Dicks, Mr. Serrano, Mr. 
  George Miller of California, Mr. Kildee, Ms. Brown of Florida, Mr. 
 Baldacci, Mr. Gilman, Mr. Brown of Ohio, Mrs. Christensen, Mr. Frost, 
 Mr. Capuano, Mrs. Jones of Ohio, Mr. Paul, Mr. Owens, Mr. Engel, Mr. 
  Evans, Mr. Waxman, and Ms. Woolsey) 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 increase the amount of 
  the student loan interest deduction and to allow more taxpayers to 
                         claim that deduction.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Loan Relief Act of 2001''.

SEC. 2. ELIMINATION OF 60-MONTH LIMIT ON STUDENT LOAN INTEREST 
              DEDUCTION.

    (a) In General.--Section 221 of the Internal Revenue Code of 1986 
(relating to interest on education loans) is amended by striking 
subsection (d) and by redesignating subsections (e), (f), and (g) as 
subsections (d), (e), and (f), respectively.
    (b) Conforming Amendment.--Section 6050S(e) of such Code is amended 
by striking ``section 221(e)(1)'' and inserting ``section 221(d)(1)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.

SEC. 3. INCREASE IN MAXIMUM DEDUCTION FOR INTEREST ON STUDENT LOANS.

    (a) In General.--Paragraph (1) of section 221(b) of the Internal 
Revenue Code of 1986 (relating to maximum deduction) is amended to read 
as follows:
            ``(1) In general.--Except as provided in paragraph (2), the 
        deduction allowed by subsection (a) for the taxable year shall 
        not exceed $5,000.''
    (b) Effective Date.--The amendment made by subsection (a) shall 
apply to taxable years beginning after December 31, 2000.

SEC. 4. INCREASE IN INCOME LIMITATION ON STUDENT LOAN INTEREST 
              DEDUCTION.

    (a) In General.--Section 221(b)(2)(B) of the Internal Revenue Code 
of 1986 (relating to amount of reduction) is amended by striking 
clauses (i) and (ii) and inserting the following:
                            ``(i) the excess of--
                                    ``(I) the taxpayer's modified 
                                adjusted gross income for such taxable 
                                year, over
                                    ``(II) $100,000 ($150,000 in the 
                                case of a joint return), bears to
                            ``(ii) $40,000.''.
    (b) Conforming Amendment.--Section 221(f)(1) of such Code, as 
redesignated by section 2, is amended--
            (1) by striking ``$40,000 and $60,000 amounts'' and 
        inserting ``$100,000 and $150,000 amounts'',
            (2) by striking ``2002'' and inserting ``2005'', and
            (3) by striking ``2001'' and inserting ``2004''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years ending after December 31, 2000.
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