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Senate Bill 405
115th Congress(2017-2018)
Stop Taxing Death and Disability Act
Introduced
Introduced
Introduced in Senate on Feb 16, 2017
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Text
Introduced in Senate 
Feb 16, 2017
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Introduced in Senate(Feb 16, 2017)
Feb 16, 2017
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Multiple bills can contain the same text. This could be an identical bill in the opposite chamber or a smaller bill with a section embedded in a larger bill.
Bill Sponsor regularly scans bill texts to find sections that are contained in other bill texts. When a matching section is found, the bills containing that section can be viewed by clicking "View Bills" within the bill text section.
Bill Sponsor is currently only finding exact word-for-word section matches. In a future release, partial matches will be included.
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S. 405 (Introduced-in-Senate)


115th CONGRESS
1st Session
S. 405


To amend the Internal Revenue Code of 1986 and the Higher Education Act of 1965 to provide an exclusion from income for student loan forgiveness for students who have died or become disabled.

IN THE SENATE OF THE UNITED STATES

February 16, 2017

Mr. Coons (for himself, Mr. King, Mr. Portman, Ms. Stabenow, Mr. Isakson, Mr. Blumenthal, Mr. Hoeven, Mr. Carper, Mr. Gardner, Mr. Kaine, Mrs. Feinstein, Mrs. Murray, and Ms. Collins) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 and the Higher Education Act of 1965 to provide an exclusion from income for student loan forgiveness for students who have died or become disabled.

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 “Stop Taxing Death and Disability Act”.

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) EFFECTIVE DATE.—The amendment made by this section shall apply to discharges of indebtedness after 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”.