[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2860 Introduced in House (IH)]






108th CONGRESS
  1st Session
                                H. R. 2860

To amend the Internal Revenue Code of 1986 to provide an exclusion from 
    gross income for qualified national service educational awards.


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                    IN THE HOUSE OF REPRESENTATIVES

                             July 24, 2003

Mr. Kind (for himself and Mr. Houghton) 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 provide an exclusion from 
    gross income for qualified national service educational awards.

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

SECTION 1. EXCLUSION OF QUALIFIED NATIONAL SERVICE EDUCATIONAL AWARDS 
              FROM GROSS INCOME.

    (a) In General.--Section 117 of the Internal Revenue Code of 1986 
(relating to qualified scholarships) is amended by adding at the end 
the following new subsection:
    ``(e) Qualified National Service Educational Awards.--
            ``(1) In general.--Gross income shall not include any 
        qualified national service educational award.
            ``(2) Qualified national service educational award.--The 
        term `qualified national service educational award' means--
                    ``(A) any amount received by an individual under 
                paragraph (2) of section 148(a) of the National and 
                Community Service Act of 1990 which is used for the 
                qualified tuition and related expenses (as defined in 
                subsection (b)(2)) of the individual; and
                    ``(B) any amount received by an individual under 
                paragraph (1) or (4) of such section.''.
    (b) Coordination With Hope and Lifetime Learning Credits.--Section 
25A(g)(2) of such Code (relating to adjustments for certain 
scholarships, etc.) is amended by redesignating subparagraphs (B) and 
(C) as subparagraphs (C) and (D), respectively, and by inserting after 
subparagraph (A) the following new subparagraph:
                    ``(B) a qualified national service educational 
                award described in section 117(e)(2)(A),''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts received in taxable years beginning after December 31, 
2003.
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