[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2462 Introduced in Senate (IS)]

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114th CONGRESS
  2d Session
                                S. 2462

 To amend section 117 of the Internal Revenue Code of 1986 to exclude 
             Federal student aid from taxable gross income.


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                   IN THE SENATE OF THE UNITED STATES

                            January 21, 2016

Mr. Blumenthal introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

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                                 A BILL


 
 To amend section 117 of the Internal Revenue Code of 1986 to exclude 
             Federal student aid from taxable gross income.

    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 ``Make Student Grants Truly Tax-Free 
Act''.

SEC. 2. EXPANSION OF QUALIFIED SCHOLARSHIP EXCLUSION FROM GROSS INCOME.

    (a) In General.--Paragraph (1) of section 117(b) of the Internal 
Revenue Code of 1986 is amended--
            (1) by striking ``received by an individual as a 
        scholarship'' and inserting ``received by an individual--
                    ``(A) as a scholarship'',
            (2) by striking the period at the end and inserting a 
        comma, and
            (3) by adding at the end the following new subparagraphs:
                    ``(B) through a scholarship or fellowship grant 
                program administered by the Secretary of Education that 
                is based on financial need, including a Federal Pell 
                Grant under section 401 of the Higher Education Act of 
                1965 (20 U.S.C. 1070a),
                    ``(C) as an Iraq and Afghanistan Service Grant 
                under section 420R of the Higher Education Act of 1965 
                (20 U.S.C. 1070h), or
                    ``(D) as a TEACH Grant under subpart 9 of part A of 
                title IV of the Higher Education Act of 1965 (20 U.S.C. 
                1070g et seq.).''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2016.
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