II 111th CONGRESS 1st Session S. 860 IN THE SENATE OF THE UNITED STATES April 22, 2009 Mr. Nelson of Nebraska (for himself, Mr. Barrasso, Mr. Merkley, Mr. Johanns, Mr. Carper, Ms. Klobuchar, and Mr. Kaufman) 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 provide a Federal income tax exclusion for assistance provided to participants in State student loan repayment programs for certain health professionals.

1.

Short title

This Act may be cited as the Health Professionals State Loan Repayment Tax Relief Act of 2009.

2.

Exclusion for assistance provided to participants in State student loan repayment programs for certain health professionals

(a)

In general

Paragraph (4) of section 108(f) of the Internal Revenue Code of 1986 (relating to payments under National Health Service Corps Loan Repayment Program and certain State loan repayment programs) is amended to read as follows: (4)

Payments under National Health Service Corps Loan Repayment Program and certain State loan repayment programs

In the case of an individual, gross income shall not include any amount received under section 338B(g) of the Public Health Service Act, under a State program described in section 338I of such Act, or under any other State loan repayment or loan forgiveness program that is intended to provide for the increased availability of health care services in underserved or health professional shortage areas (as determined by such State). . (b)

Effective date

The amendment made by this section shall apply to amounts received by an individual in taxable years beginning after December 31, 2008.