Section 1 Short title
This Act may be cited as the “Readily Ending Debt Under Corporate Engagement Act of 2021” or the “REDUCE Act of 2021”.
Readily Ending Debt Under Corporate Engagement Act of 2021
A BILL
To amend the Internal Revenue Code of 1986 to allow the deduction for interest paid on student loans without reduction for employer educational assistance.
Sec. 2 Student loan interest deduction not offset by employer educational assistance
In general— Section 221(d)(2)(A) of the Internal Revenue Code of 1986 is amended by striking “127,”.
Change to denial of double benefit rule— Section 221(e)(1) of such Code is amended by striking “, or for which an exclusion is allowable under section 127 to the taxpayer by reason of the payment by the taxpayer’s employer of any indebtedness on a qualified education loan of the taxpayer”.
Effective date— The amendments made by this section shall apply to taxable years beginning after December 31, 2020.