[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1296 Introduced in House (IH)]







108th CONGRESS
  1st Session
                                H. R. 1296

    To amend the Internal Revenue Code of 1986 to repeal the dollar 
      limitation on the deduction of interest on education loans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 13, 2003

    Mr. Wu 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 repeal the dollar 
      limitation on the deduction of interest on education loans.

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

SECTION 1. REPEAL OF DOLLAR LIMITATION ON DEDUCTION OF INTEREST ON 
              EDUCATION LOANS.

    (a) In General.--Subsection (b) of section 221 of the Internal 
Revenue Code of 1986 (relating to maximum deduction) is amended to read 
as follows:
    ``(b) Limitation Based on Modified Adjusted Gross Income.--
            ``(1) In general.--The amount which would (but for this 
        subsection) be allowable as a deduction under this section 
        shall be reduced (but not below zero) by the amount determined 
        under paragraph (2).
            ``(2) Amount of reduction.--The amount determined under 
        this paragraph is the amount which bears the same ratio to the 
        amount which would be so taken into account as--
                    ``(A) the excess of--
                            ``(i) the taxpayer's modified adjusted 
                        gross income for such taxable year, over
                            ``(ii) $50,000 ($100,000 in the case of a 
                        joint return), bears to
                    ``(B) $15,000 ($30,000 in the case of a joint 
                return).
            ``(3) Modified adjusted gross income.--The term `modified 
        adjusted gross income' means adjusted gross income determined--
                    ``(A) without regard to this section and sections 
                222, 911, 931, and 933, and
                    ``(B) after application of sections 86, 135, 137, 
                219, and 469.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to payments made in taxable years beginning after December 31, 2002.
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