Introduced in House Passed House Introduced in Senate Passed Senate To President Became Law
12/06/2019          

DEBT Act of 2019

Date Version PDF TXT
12/16/2019 Introduced in House Open
12/06/2019 Introduced in House Open

            


116th CONGRESS
1st Session
H. R. 5359


To amend the Internal Revenue Code of 1986 to expand the exclusion for employer-provided educational assistance and to expand the availability of the student loan interest deduction.


IN THE HOUSE OF REPRESENTATIVES

December 6, 2019

Mr. Stivers (for himself, Miss Rice of New York, Mr. Katko, Ms. Spanberger, and Ms. Kendra S. Horn of Oklahoma) 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 exclusion for employer-provided educational assistance and to expand the availability of the student loan interest 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 “Decreasing Employees Burdensome Taxes from Student Loans Act of 2019” or the “DEBT Act of 2019”.

SEC. 2. Exclusion for employer payment of qualified education loans.

(a) In general.—Section 127(c)(1) of the Internal Revenue Code of 1986 is amended by striking “and” at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following new subparagraph:

“(B) the payment by an employer, whether paid to the employee or to a lender, of principal or interest on any qualified education loan (as defined in section 221(d)(1)) incurred by the employee, and”.

(b) Denial of double benefit.—Section 221(e)(1) of such Code is amended by inserting before the period at the end the following: “, or for any amount which is excludable from gross income under section 127(c)(1)(B)”.

(c) Effective date.—The amendments made by this section shall apply to payments made by employers after December 31, 2019.

SEC. 3. Increase in maximum amount excludable under educational assistance programs.

(a) In general.—The text of paragraph (2) of section 127(a) of the Internal Revenue Code of 1986 is amended by striking “$5,250” both places it appears and inserting “$10,000”.

(b) Conforming amendment.—The heading for section 127(a)(2) of such Code is amended by striking “$5,250 maximum” and inserting “Maximum”.

(c) Effective date.—The amendments made by this section shall apply to payments made by employers after December 31, 2019.

SEC. 4. Modification of deduction for interest on education loans.

(a) Increased maximum deduction.—Section 221(b)(1) of the Internal Revenue Code of 1986 is amended by striking “$2,500” and inserting “$5,000”.

(b) Increased income limitation.—Section 221(b)(2)(B)(ii) of such Code is amended by striking “$15,000 ($30,000” and inserting “$85,000 ($115,000”.

(c) Effective date.—The amendment made by this section shall apply to taxable years beginning after December 31, 2019.


Picture Name From Date Type
Steve Stivers R-OH 12/06/2019 Sponsor
Abigail Spanberger D-VA 12/06/2019 Cosponsor
Kathleen Rice D-NY 12/06/2019 Cosponsor
John Katko R-NY 12/06/2019 Cosponsor
Kendra Horn D-OK 12/06/2019 Cosponsor
Date Branch Action
12/06/2019 President Referred to the House Committee on Ways and Means.Action By: House of Representatives
12/06/2019 President Introduced in HouseAction By: House of Representatives
Summary
There is one summary for H.R.5359. View summaries Shown Here:Introduced in House (12/06/2019) Decreasing Employees Burdensome Taxes from Student Loans Act of 2019 or the DEBT Act of 2019 This bill amends the Internal Revenue Code, with respect to the tax treatment of student loan payments, to (1) expand the tax exclusion for employer-provided educational assistance programs to include an employer's payment of any qualified education loan incurred by an employee, (2) increase the maximum amount that may be excluded from the gross income of an employee under employer-provided educational assistance programs, and (3) increase the maximum tax deduction and the income limitation for interest on education loans.
Shown Here:Introduced in House (12/06/2019) Decreasing Employees Burdensome Taxes from Student Loans Act of 2019 or the DEBT Act of 2019 This bill amends the Internal Revenue Code, with respect to the tax treatment of student loan payments, to (1) expand the tax exclusion for employer-provided educational assistance programs to include an employer's payment of any qualified education loan incurred by an employee, (2) increase the maximum amount that may be excluded from the gross income of an employee under employer-provided educational assistance programs, and (3) increase the maximum tax deduction and the income limitation for interest on education loans.
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