[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[S. 2429 Introduced in Senate (IS)]

113th CONGRESS
  2d Session
                                S. 2429

To amend the Internal Revenue Code of 1986 to extend the exclusion for 
    employer-provided educational assistance to employer payment of 
             interest on certain refinanced student loans.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              June 4, 2014

 Mr. Warner (for himself and Mr. Thune) 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 extend the exclusion for 
    employer-provided educational assistance to employer payment of 
             interest on certain refinanced student loans.

    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 ``Employer Participation in 
Refinancing Act''.

SEC. 2. EXCLUSION FOR EMPLOYER PAYMENT OF INTEREST ON CERTAIN 
              REFINANCED STUDENT LOANS.

    (a) In General.--Paragraph (1) of section 127(c) of the Internal 
Revenue Code of 1986 is amended by striking ``and'' at the end of 
subparagraph (A), by redesignating subparagraph (B) as subparagraph 
(C), and by inserting after subparagraph (A) the following new 
subparagraph:
                    ``(B) the payment by an employer, whether paid to 
                the employee or to a lender, of any indebtedness of the 
                employee under a qualified education refinance loan or 
                any interest relating to such a loan, and''.
    (b) Qualified Education Refinance Loan.--Subsection (c) of section 
127 of the Internal Revenue Code of 1986 is amended by adding at the 
end the following new paragraph:
            ``(8) Qualified education refinance loan.--The term 
        `qualified education refinance loan' means any indebtedness 
        used solely to refinance a qualified education loan (within the 
        meaning of section 221(d)(1)) with respect to which the lender 
        offers the borrower protection in the event of unemployment or 
        financial hardship (as reasonably determined by the lender, 
        including periods of forbearance or career assistance).''.
    (c) Conforming Amendment; Denial of Double Benefit.--Paragraph (1) 
of section 221(e) of the Internal Revenue Code of 1986 is amended by 
inserting before the period the following: ``, or for which an 
exclusion is allowable under section 127 to the taxpayer's employer by 
reason of the payment by such employer of any indebtedness on a 
qualified education loan of the taxpayer''.
    (d) Effective Date.--The amendments made by this section shall 
apply to expenses paid after December 31, 2014.
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