Higher Education Loan Payments for Students and Parents Act

“(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”

“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).”

“(37) the employer-provided higher education assistance credit determined under section 45S.”

“(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.”