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May 12, 2016viewing Reported in House Mr. Roskam (for himself, Mr. Kind, Mr. Costello of Pennsylvania, and Ms. Pingree) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned See what changed
May 12, 2016 Introduced in House Mr. Roskam (for himself, Mr. Kind, Mr. Costello of Pennsylvania, and Ms. Pingree) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Education and the Workforce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

H.R. 5204 — what changed

Stop Taxing Death and Disability Act

From Introduced in House to Reported in House. 1 section amended between Introduced in House and Reported in House.

Sec. 2 Treatment of student loans discharged on account of death or disability

(a)

Amendments to Internal Revenue Code of 1986—

(1)

In general— Section 108(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

“(5) Discharges on account of death or disability

“(A) In general—In the case of an individual, gross income does not include any amount which (but for this subsection) would be includible in gross income by reasons of the discharge (in whole or in part) of any loan described in subparagraph (B) if such discharge was—

“(i) pursuant to subsection (a) or (d) of section 437 of the Higher Education Act of 1965 or the parallel benefit under part D of title IV of such Act (relating to the repayment of loan liability),

“(ii) pursuant to section 464(c)(1)(F) of such Act, or

“(iii) otherwise discharged on account of the death or total and permanent disability of the student.

“(B) Loans described—A loan is described in this subparagraph if such loan is—

“(i) a student loan (as defined in paragraph (2)), or

“(ii) a private education loan (as defined in section 140(7) of the Consumer Credit Protection Act (15 U.S.C. 1650(7))).”

(2)

changed Effective date— The amendment made by this section shall apply to discharges of ~~loans before, on, or~~ indebtedness after ~~the date of the enactment of this Act.~~December 31, 2016.

(b)

Amendment to the Higher Education Act of 1965— Section 437(d) of the Higher Education Act of 1965 (20 U.S.C. 1087(d)) is amended by inserting “or becomes permanently and totally disabled (as determined in accordance with regulations of the Secretary), or if the student is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death, has lasted for a continuous period of not less than 60 months, or can be expected to last for a continuous period of not less than 60 months” after “dies”.

H.R. 5204 — what changed

Sec. 2 Treatment of student loans discharged on account of death or disability

Cite this provision

Incoming references