[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5191 Introduced in House (IH)]
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114th CONGRESS
2d Session
H. R. 5191
To amend the Internal Revenue Code of 1986 to provide incentives for
employers to establish student loan repayment programs and to make
contributions to qualified tuition programs on behalf of children of
employees.
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IN THE HOUSE OF REPRESENTATIVES
May 11, 2016
Mr. Dold introduced the following bill; which was referred to the
Committee on Ways and Means
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A BILL
To amend the Internal Revenue Code of 1986 to provide incentives for
employers to establish student loan repayment programs and to make
contributions to qualified tuition programs on behalf of children of
employees.
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 ``Higher Education Loan Payments for
Students and Parents Act'' or the ``HELP for Students and Parents
Act''.
SEC. 2. EXCLUSION FOR EMPLOYER PAYMENT OF QUALIFIED EDUCATION LOANS AND
CERTAIN QUALIFIED TUITION PLAN CONTRIBUTIONS.
(a) In General.--Section 127(c)(1) of the Internal Revenue Code of
1986 is amended by striking ``and'' at the end of subparagraph (A), by
redesignating subparagraph (B) as subparagraph (D), and by inserting
after subparagraph (A) the following new subparagraphs:
``(B) the payment by an employer of principal or
interest on any qualified education loan (as defined in
section 221(d)(1)) incurred by the employee,
``(C) any qualified dependent 529 contributions (as
defined in section 45S(d)) made by the employer, and''.
(b) Effective Date.--The amendments made by this section shall
apply to payments made by employers after December 31, 2016.
SEC. 3. EMPLOYER PROVIDED HIGHER EDUCATION ASSISTANCE CREDIT.
(a) In General.--Subpart D of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 45S. EMPLOYER-PROVIDED HIGHER EDUCATION ASSISTANCE CREDIT.
``(a) In General.--For purposes of section 38, the employer-
provided higher education assistance credit determined under this
section for the taxable year is an amount equal to the sum of--
``(1) 50 percent of the student loan repayment expenditures
of the taxpayer for the taxable year, and
``(2) 50 percent of the qualified dependent 529
contributions made by the taxpayer for the taxable year.
``(b) Dollar Limitation.--The amount taken into account under each
of paragraphs (1) and (2) with respect to any employee for any taxable
year shall not exceed $5,250.
``(c) Student Loan Repayment Expenditure.--For purposes of this
section, the term `student loan repayment expenditure' means any amount
paid by an employer for principal or interest on any qualified
education loan (as defined in section 221(d)(1)) incurred by an
employee.
``(d) Qualified Dependent 529 Contribution.--For purposes of this
section--
``(1) In general.--The term `qualified dependent 529
contribution' means any amount contributed by an employer to a
qualified tuition program the designated beneficiary of which
is a qualifying child of an employee.
``(2) Qualifying child.--The term `qualifying child' means
a child who--
``(A) has not attained the age of 19 at the time of
the contribution, or
``(B) is a student who has not attained the age of
24 at the time of the contribution.
``(e) Special Rules.--
``(1) Self-employed individuals.--The term `employee'
includes for any year, an individual who is an employee within
the meaning of section 401(c)(1) (relating to self-employed
individuals).
``(2) Employer.--An individual who owns the entire interest
in an unincorporated trade or business shall be treated as his
own employer. A partnership shall be treated as the employer of
each partner who is an employee within the meaning of paragraph
(2).''.
(b) Credit Part of General Business Credit.--Section 38(b) of such
Code is amended by striking ``plus'' at the end of paragraph (35), by
striking the period at the end of paragraph (36) and inserting ``,
plus'', and by adding at the end the following new paragraph:
``(37) the employer-provided higher education assistance
credit determined under section 45S.''.
(c) Denial of Deduction.--Section 280C of such Code is amended by
adding at the end the following new subsection:
``(j) Employer-Provided Higher Education Assistance Credit.--No
deduction shall be allowed for that portion of the student loan
repayment expenditures (as defined in section 45S(c)) and qualified
dependent 529 contributions (as defined in section 45S(d)) otherwise
allowable as a deduction for the taxable year which is equal to the
amount of the credit determined for such taxable year under section 45S
with respect to any such expenditures or contributions, as the case may
be.''.
(d) Clerical Amendment.--The table of sections for subpart D of
part IV of subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45S. Employer-provided higher education assistance credit.''.
(e) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2016.
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