[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5044 Engrossed in House (EH)]

112th CONGRESS
  2d Session
                                H. R. 5044

_______________________________________________________________________

                                 AN ACT


 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
  any discharge of indebtedness income on education loans of deceased 
                               veterans.

    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 ``Andrew P. Carpenter Tax Act''.

SEC. 2. DISCHARGE OF INDEBTEDNESS INCOME ON EDUCATION LOANS OF DECEASED 
              VETERANS.

    (a) In General.--Subsection (f) of section 108 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(5) Deceased veterans.--
                    ``(A) In general.--In the case of any student loan 
                described in subparagraph (B) of an individual who is a 
                veteran who served on active duty in the Armed Forces 
                of the United States and who is deceased as a result of 
                a service-connected disability, no amount which (but 
                for this paragraph) would otherwise be includible in 
                gross income by reason of the discharge (in whole or in 
                part) of such loan shall be includible in gross income 
                of any cosigner on such loan.
                    ``(B) Student loan described.--For purposes of 
                subparagraph (A), a student loan described in this 
                subparagraph is a loan that--
                            ``(i) is made, insured, or guaranteed under 
                        title IV of the Higher Education Act of 1965, 
                        or
                            ``(ii) is a private education loan (as 
                        defined in section 140(a)(7) of the Truth in 
                        Lending Act (15 U.S.C. 1650(a)(7))), made by an 
                        entity (other than an entity described in 
                        paragraph (2)) to an individual to assist the 
                        individual in attending an educational 
                        organization described in section 
                        170(b)(1)(A)(ii).
                    ``(C) Service-connected disability.--For purposes 
                of subparagraph (A), the term `service-connected 
                disability' has the meaning given such term by section 
                101(16) of title 38, United States Code.''.
    (b) Effective Date.--The amendments made by this section shall 
apply to discharges of indebtedness occurring on or after October 7, 
2001.
    (c) Waiver of Limitation for Credits and Refunds Attributable to 
This Act.--If the credit or refund of any overpayment of tax resulting 
from the application of the amendment made by subsection (a) to a 
period before the date of enactment of this Act is prevented as of such 
date by the operation of any law or rule of law (including res 
judicata), such credit or refund may nevertheless be allowed or made if 
the claim therefor is filed before the close of the 1-year period 
beginning on the date of the enactment of this Act.

SEC. 3. ACCOUNTS IN THE THRIFT SAVINGS FUND SUBJECT TO CERTAIN FEDERAL 
              TAX LEVIES.

    (a) In General.--Section 8437(e)(3) of title 5, United States Code, 
is amended in the first sentence--
            (1) by striking ``659)'' and inserting ``659),''; and
            (2) by striking the period at the end and inserting the 
        following: ``, and shall be subject to a Federal tax levy under 
        section 6331 of the Internal Revenue Code of 1986.''.
    (b) Disposition of Amounts.--Any potential revenue gain 
attributable to the enactment of this Act, as determined by the 
Director of the Congressional Budget Office--
            (1) shall be deposited in the general fund of the Treasury 
        of the United States; and
            (2) shall be used solely for purposes of deficit reduction.

            Passed the House of Representatives September 19, 2012.

            Attest:

                                                                 Clerk.
112th CONGRESS

  2d Session

                               H. R. 5044

_______________________________________________________________________

                                 AN ACT

To amend the Internal Revenue Code of 1986 to exclude from gross income 
  any discharge of indebtedness income on education loans of deceased 
                               veterans.