[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 676 Introduced in Senate (IS)]
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116th CONGRESS
1st Session
S. 676
To amend the Internal Revenue Code of 1986 to exclude certain post-
graduation scholarship grants from gross income in the same manner as
qualified scholarships to promote economic growth.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 6, 2019
Mr. Peters (for himself and Mrs. Capito) 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 exclude certain post-
graduation scholarship grants from gross income in the same manner as
qualified scholarships to promote economic growth.
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 ``Workforce Development Through Post-
Graduation Scholarships Act of 2019''.
SEC. 2. POST-GRADUATION SCHOLARSHIP GRANTS EXCLUDED FROM GROSS INCOME
IN SAME MANNER AS QUALIFIED SCHOLARSHIPS.
(a) In General.--Section 117(a) of the Internal Revenue Code of
1986 is amended--
(1) by striking the period at the end and inserting ``,
or'',
(2) by striking ``any amount received'' and inserting the
following: ``any amount which--
``(1) is received'', and
(3) by adding at the end the following new paragraph:
``(2) is a post-graduation scholarship grant received by or
paid on behalf of an individual.''.
(b) Post-Graduation Scholarship Grant.--Section 117(b) of such Code
is amended by redesignating paragraph (2) as paragraph (3) and by
inserting after paragraph (1) the following new paragraph:
``(2) Post-graduation scholarship grant.--
``(A) In general.--The term `post-graduation
scholarship grant' means any grant program--
``(i) which is established by an
organization which--
``(I) is described in section
501(c)(3) and exempt from tax under
section 501(a) (other than an
organization established by an
organization described in section
170(b)(1)(A)(ii) or an organization
described in section 170(b)(1)(A)(iii)
the principal purpose or function of
which is the provision of medical
education), and
``(II) is either a private
foundation or a community trust
described in section 170(b)(1)(A)(vi),
``(ii) which requires a grantee to live and
work in an applicable community, and
``(iii) under which, in accordance with the
conditions of a grant, such organization repays
any portion of an applicable education loan
incurred by an individual.
``(B) Applicable community.--For purposes of
subparagraph (A)(ii), the term `applicable community'
means any area that--
``(i) is--
``(I) a low-income community (as
determined under section 45D(e)), or
``(II) a county that has, during
the 10-year period ending with the year
in which the most recent census was
conducted, a net out-migration of
inhabitants from the county of the
population of the county at the
beginning of such period, and
``(ii) has a bachelor's degree attainment
rate for the population of 25-34 year-olds that
is below the national average for such
population (as determined based on data
collected by the Census Bureau).
``(C) Applicable education loan.--For purposes of
subparagraph (A)(iii), the term `applicable education
loan' means, with respect to any individual, a
qualified education loan (as defined in section
221(d)(1)) incurred to pay qualified higher education
expenses (as defined in section 221(d)(2)) of such
individual.''.
(c) Amount Not Treated as Taxable Expenditure by Private
Foundation.--Section 4945(g) of such Code is amended by striking ``or''
at the end of paragraph (2), by striking the period at the end of
paragraph (3) and inserting ``, or'', and by adding at the end the
following new paragraph:
``(4) the grant is a post-graduation scholarship grant (as
defined in section 117(b)(2)).''.
(d) Denial of Double Benefit.--Section 221(e) of such Code is
amended by redesignating paragraphs (2) and (3) as paragraphs (3) and
(4), respectively, and by inserting after paragraph (1) the following
new paragraph:
``(2) Denial of double benefit in case of post-graduation
scholarship grants.--Any interest which is paid as part of a
post-graduation scholarship grant and excluded from gross
income under section 117 shall not be taken into account under
this section.''.
(e) Regulatory Authority.--Section 117 of such Code is amended by
adding at the end the following new subsection:
``(e) Regulations.--The Secretary shall prescribe such reporting
requirements and regulations as may be necessary or appropriate to
carry out subsection (a)(2), including--
``(1) regulations defining under what conditions an
individual is considered to live and work in a community for
purposes of subsection (b)(2)(A)(ii), and
``(2) regulations to ensure the implementation and
effectiveness of such subsection.''.
(f) Effective Date.--The amendments made by this section shall
apply with respect to taxable years beginning after the date of
enactment of this Act.
(g) Reports.--
(1) Secretary of treasury.--Not later than 3 years after
the date of the enactment of this Act, and periodically
thereafter, the Secretary of the Treasury, or the Secretary's
delegate, shall submit to Congress a report on the
implementation and effectiveness of the amendments made by this
section.
(2) Comptroller general.--
(A) In general.--Not later than 5 years after the
date of enactment of this Act, the Comptroller General
of the United States shall publish the result of a
study on post-graduation scholarship grants to which
section 117 of the Internal Revenue Code of 1986 (as
amended by this section) applies.
(B) Contents.--The information published under
subparagraph (A) shall include the following:
(i) A description of the characteristics of
individuals who receive post-graduation
scholarship grants.
(ii) The length of time involved in such
grants.
(iii) The amount paid out under such
grants.
(iv) The disposition of any funds paid
under such grants, including the identity of
any loan holders who benefit from such funds.
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