[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6594 Introduced in House (IH)]

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118th CONGRESS
  1st Session
                                H. R. 6594

To amend the Internal Revenue Code of 1986 to expand the deduction for 
  student loan interest to include payments toward principal, and to 
                  increase the value of the deduction.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 5, 2023

   Mr. Goldman of New York (for himself, Ms. Jacobs, Ms. Norton, Ms. 
  McCollum, Ms. Crockett, Mr. Khanna, and Ms. Tokuda) introduced the 
 following bill; which was referred to the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to expand the deduction for 
  student loan interest to include payments toward principal, and to 
                  increase the value of the deduction.

    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 ``Generating Relief for Academic Debt 
Using Assisted Tax Efficiency Act'' or the ``GRADUATE Act''.

SEC. 2. EDUCATION LOAN DEDUCTION.

    (a) In General.--Section 221 of the Internal Revenue Code of 1986 
is amended--
            (1) in the heading, by striking ``interest on education 
        loans'' and inserting ``education loans'',
            (2) by amending subsection (a) to read as follows:
    ``(a) Allowance of Deduction.--In the case of an individual, there 
shall be allowed as a deduction for the taxable year an amount equal to 
the amounts paid by the taxpayer during the taxable year on any 
qualified education loan.'',
            (3) by amending subsection (b) to read as follows:
    ``(b) Maximum Deduction.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        deduction allowed by subsection (a) for the taxable year shall 
        not exceed an amount equal to the sum of--
                    ``(A) $10,000, plus
                    ``(B) $500 multiplied by the number of dependents 
                of the taxpayer for such taxable year.
            ``(2) Limitation based on modified adjusted gross income.--
                    ``(A) In general.--The amount which would (but for 
                this paragraph) be allowable as a deduction under this 
                section shall be reduced (but not below zero) by the 
                amount determined under subparagraph (B).
                    ``(B) Amount of reduction.--The amount determined 
                under this subparagraph is the amount which bears the 
                same ratio to the amount which would be so taken into 
                account as--
                            ``(i) the excess of--
                                    ``(I) the taxpayer's modified 
                                adjusted gross income for such taxable 
                                year, over
                                    ``(II) $125,000 ($250,000 in the 
                                case of a joint return), bears to
                            ``(ii) $25,000 ($50,000 in the case of a 
                        joint return).
                    ``(C) Modified adjusted gross income.--The term 
                `modified adjusted gross income' means adjusted gross 
                income determined--
                            ``(i) without regard to this section and 
                        sections 85(c), 911, 931, and 933, and
                            ``(ii) after application of sections 86, 
                        135, 137, 219, and 469.'', and
            (4) in subsection (f)(1)--
                    (A) by striking ``after 2002'' and inserting 
                ``after 2024'',
                    (B) by striking ``$50,000 and $100,000'' and 
                inserting ``$125,000 and $250,000'', and
                    (C) in subparagraph (B), by striking ``calendar 
                year 2001'' and inserting ``calendar year 2023''.
    (b) Conforming Amendment.--Section 62(a)(17) of such Code is 
amended to read as follows:
            ``(17) Education loan payments.--The deduction allowed by 
        section 221.''.
    (c) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2023.
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