[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 152 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 152

 To amend the Internal Revenue Code of 1986 to eliminate the 60-month 
 limit and increase the income limitation on the student loan interest 
                               deduction.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 23, 2001

  Mr. Grassley (for himself and Mr. Baucus) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to eliminate the 60-month 
 limit and increase the income limitation on the student loan interest 
                               deduction.

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

SECTION 1. ELIMINATION OF 60-MONTH LIMIT AND INCREASE IN INCOME 
              LIMITATION ON STUDENT LOAN INTEREST DEDUCTION.

    (a) Elimination of 60-Month Limit.--
            (1) 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.
            (2) Conforming amendment.--Section 6050S(e) of such Code is 
        amended by striking ``section 221(e)(1)'' and inserting 
        ``section 221(d)(1)''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply with respect to any loan interest paid after 
        December 31, 2000, in taxable years ending after such date.
    (b) Increase in Income Limitation.--
            (1) 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) $50,000 (twice such dollar 
                                amount in the case of a joint return), 
                                bears to
                            ``(ii) $15,000.''.
            (2) Conforming amendment.--Section 221(g)(1) of such Code 
        is amended by striking ``$40,000 and $60,000 amounts'' and 
        inserting ``$50,000 amount''.
            (3) Effective date.--The amendments made by this subsection 
        shall apply to taxable years ending after December 31, 2000.
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