,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #cie  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,janu>y #bc1 #bjac    
,mr4 ,israel 7= himself1 ,mr4 ,k+ ( ,new
 ,york1 ,ms4 ,norton1 ,mr4 ,hanna1 &    
,mr4 ,cicill9e7 introduc$ ! foll[+ bill2
 :i* 0 ref]r$ to ! ,committee on ,ways &
 ,means  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to exclude f gross
 income am\nts paid by an employ] on an 
employee's /ud5t loans4  #a4 ,%ort title
 ,?is ,act may be cit$ z ! ,/ud5t ,loan 
,employm5t ,b5efits ,act ( #bjac4  #b4  
,/ud5t loan paym5t assi/ance programs   
7a7 ,9 g5]al ,"p ,,iii ( sub*apt] ,b (  
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf is am5d$ by ins]t+ aft] section   
#abg ! foll[+ new section3  #abg;,a4    
,/ud5t loan paym5t assi/ance programs   
7a7 ,9 g5]al ,gross income ( an employee
 does n include am\nts paid or incurr$  
by ! employ] = /ud5t loan paym5t        
assi/ance provid$ to su* employee if !  
assi/ance is furni%$ pursuant to a      
program :i* is describ$ 9 subsection    

7c74  7b7 ,limitations  7#a7 ,assi/ance 
limitation ,! am\nt tak5 into acc\nt "u 
subsection 7a7 ) respect to an          
individual = /ud5t loan assi/ance )     
respect to /ud5t loan paym5ts dur+ a    
taxable ye> %all n exce$ #e1jjj4  7#b7  
,e>n$ income limitation ,! am\nt exclud$
 f ! income ( an employee "u subsection 
7a7 = any taxable ye> %all n exce$ !    
e>n$ income ( su* employee = su* taxable
 ye>4  7c7 ,/ud5t loan paym5t assi/ance 
program  7#a7 ,9 g5]al ,= purposes ( ?is
 section a /ud5t loan paym5t assi/ance  
program is a sep>ate writt5 plan ( an   
employ] = ! exclusive b5efit ( 8        
employees to provide su* employees )    
/ud5t loan paym5t assi/ance :i* meets ! 
requirem5ts ( p>agraphs 7#b7 ?r\gh 7#i7 
( ?is subsection4 ,if any plan w\ld     
qualify z a /ud5t loan paym5t assi/ance 
program b = a failure to meet !         
requirem5ts ( ?is subsection1 !n1       
not)/&+ su* failure1 su* plan %all be   
treat$ z a /ud5t loan paym5t assi/ance  
program 9 ! case ( employees :o are n   

highly comp5sat$ employees4  7#b7       
,discrim9ation ,! contributions or      
b5efits provid$ "u ! plan %all n        
discrim9ate 9 favor ( employees :o are  
highly comp5sat$ employees 7)9 ! mean+ (
 section #dad7q774  7#c7 ,eligibility ,!
 program %all b5efit employees :o       
qualify "u a classification set up by ! 
employ] & f\nd by ! ,secret>y n to be   
discrim9atory 9 favor ( employees       
describ$ 9 p>agraph 7#b74  7#d7         
,pr9cipal %>ehold]s or own]s ,n m ?an   
#be p]c5t ( ! am\nts paid or incurr$ by 
! employ] = /ud5t loan paym5t assi/ance 
dur+ ! ye> may be provid$ = ! class (   
individuals :o are %>ehold]s or own]s   
7or _! sp\ses or dep5d5ts71 ea* ( :om   
7on any day ( ! ye>7 owns m ?an #e p]c5t
 ( ! /ock or ( ! capital or pr(its      
int]e/ 9 ! employ]4  7#e7 ,no fund+     
requir$ ,a program ref]r$ to 9 p>agraph 
7#a7 is n requir$ to be fund$4  7#f7    
,notification ( eligible employees      
,reasonable notification ( !            
availability & t]ms ( ! program %all be 

provid$ to eligible employees4  7#g7    
,/atem5t ( exp5ses ,! plan %all furni%  
to an employee1 on or be=e ,janu>y #ca1 
a writt5 /atem5t %[+ ! am\nts paid or   
exp5ses incurr$ by ! employ] 9 provid+  
/ud5t loan paym5t assi/ance to su*      
employee dur+ ! previ\s cal5d> ye>4     
7#h7 ,b5efits  7,a7 ,9 g5]al ,a plan    
meets ! requirem5ts ( ?is p>agraph if ! 
av]age b5efits provid$ to employees :o  
are n highly comp5sat$ employees "u all 
plans ( ! employ] is at lea/ #ee p]c5t (
 ! av]age b5efits provid$ to highly     
comp5sat$ employees "u all plans ( !    
employ]4  7,b7 ,sal>y r$uction agreem5ts
 ,= purposes ( subp>agraph 7,a71 9 !    
case ( any b5efits provid$ ?r\gh a sal>y
 r$uction agreem5t1 a plan may disreg>d 
any employees ^: comp5sation is less ?an
 #be1jjj4 ,= purposes ( ?is subp>agraph1
 ! t]m comp5sation has ! mean+ giv5 su* 
t]m by section #dad7q77#d71 except t1 "u
 rules prescrib$ by ! ,secret>y1 an     
employ] may elect to det]m9e comp5sation
 on any o!r basis :i* does n discrim9ate

 9 favor ( highly comp5sat$ employees4  
7#i7 ,exclud$ employees ,= purposes (   
p>agraphs 7#c7 & 7#h71 !re %all be      
exclud$ f consid]ation--  7,a7 subject  
to rules simil> to ! rules ( section    
#daj7;b77#d71 employees :o h n atta9$ ! 
age ( #ba & complet$ #a ye> ( s]vice 7z 
def9$ 9 section #daj7;a77#c771 &  7,b7  
employees n includ$ 9 a /ud5t loan      
paym5t assi/ance program :o are includ$ 
9 a unit ( employees cov]$ by an        
agreem5t :i* ! ,secret>y f9ds to be a   
collective b>ga9+ agreem5t betwe5       
employee repres5tatives & #a or m       
employees1 if !re is evid5ce t /ud5t    
loan paym5t b5efits 7 ! subject ( good  
fai? b>ga9+ betwe5 su* employee         
repres5tatives & su* employ] or         
employ]s4  7d7 ,def9itions & special    
rules ,= purposes ( ?is section--  7#a7 
,/ud5t loan paym5t assi/ance  7,a7 ,9   
g5]al ,! t]m /ud5t loan paym5t assi/ance
 means ! paym5t ( pr9cipal or int]e/    
on--  7i7 any indebt$ness incurr$ by !  
employee solely to pay qualifi$ high]   

education exp5ses 7z def9$ 9 section    
#bba7 :i*--  7,i7 are paid or incurr$ )9
 a reasonable p]iod ( "t be=e or aft] ! 
indebt$ness 0 incurr$1 &  7,,ii7 are    
attributable to education furni%$ dur+ a
 p]iod dur+ :i* ! employee 0 an eligible
 /ud5t1 or  7ii7 any indebt$ness us$ to 
ref9ance indebt$ness describ$ 9 clause  
7i74  ,su* t]m %all n include any paym5t
 ( pr9cipal or int]e/ on indebt$ness ow$
 to a p]son :o is relat$ 7)9 ! mean+ (  
section #bfg7;b7 or #gjg7;b77#a77 to !  
taxpay] or to any p]son by reason ( a   
loan "u any qualifi$ employ] plan 7z    
def9$ 9 section #gb7p77#d77 or "u any   
contract ref]r$ to 9 section #gb7p77#e74
  7,b7 ,eligible /ud5t ,! t]m eligible  
/ud5t has ! mean+ giv5 su* t]m by       
section #be;,a7b77#c74  7,c7 ,dep5d5t ,!
 t]m dep5d5t has ! mean+ giv5 su* t]m by
 section #aeb 7det]m9$ )\t reg>d to     
subsections 7b77#a71 7b77#b71 &         
7d77#a77;,b7 !re(74  7#b7 ,e>n$ income  
,! t]m e>n$ income %all h ! mean+ giv5  
su* t]m 9 section #cb7;c77#b71 b su* t]m

 %all n include any am\nts paid or      
incurr$ by an employ] = /ud5t loan      
paym5t assi/ance to an employee4  7#c7  
,employee ,! t]m employee includes1 =   
any ye>1 an individual :o is an employee
 )9 ! mean+ ( section #dja7;c77#a7      
7relat+ to self-employ$ individuals74   
7#d7 ,employ] ,an individual :o owns !  
entire int]e/ 9 an un9corporat$ trade or
 bus9ess %all be treat$ z 8 own employ]4
 ,a p>tn]%ip %all be treat$ z ! employ] 
( ea* p>tn] :o is an employee )9 ! mean+
 ( p>agraph 7#c74  7#e7 ,attribution    
rules  7,a7 ,own]%ip ( /ock ,own]%ip (  
/ock 9 a corporation %all be det]m9$ 9  
accordance ) ! rules provid$ "u         
subsections 7d7 & 7e7 ( section #aefc   
7)\t reg>d to section                   
#aefc7;e77#c77;,c774  7,b7 ,int]e/ 9    
un9corporat$ trade or bus9ess ,! int]e/ 
( an employee 9 a trade or bus9ess :i*  
is n incorporat$ %all be det]m9$ 9      
accordance ) regulations prescrib$ by ! 
,secret>y1 :i* %all be bas$ on pr9ciples
 simil> to ! pr9ciples :i* apply 9 !    

case ( subp>agraph 7,a74  7#f7          
,utilization te/ n applicable ,a /ud5t  
loan paym5t assi/ance program %all n be 
held or consid]$ to fail to meet any    
requirem5ts ( subsection 7c7 7o!r ?an   
p>agraphs 7#d7 & 7#h7 !re(7 m]ely       
because ( utilization rates = ! diff]5t 
types ( assi/ance made available "u !   
program4  7#g7 ,disall[ance ( exclud$   
am\nts z cr$it or d$uction ,no d$uction 
or cr$it %all be all[$ to ! employee "u 
any o!r section ( ?is *apt] = any am\nt 
exclud$ f ! gross income ( ! employee by
 reason ( ?is section4  4  7b7 ,con=m+  
am5dm5ts ,sections #bba7;d77#b77;,a71   
#dad7n77#c77;,c7 & 7t77#b71             
#caba7;a77#ah71 #ccjf7;b77#ac71         
#cdja7;a77#ah71 & #fjci;,d7d77#a7 ( su* 
,code are ea* am5d$ by ins]t+ #abg;,a1  
aft] #abg14  7c7 ,cl]ical am5dm5t ,!    
table ( sections = "p ,,iii ( sub*apt]  
,b ( *apt] #a ( su* ,code is am5d$ by   
ins]t+ aft] ! item relat+ to section    
#abg ! foll[+ new item3  ,sec4 #abg;,a4 
,/ud5t loan paym5t assi/ance programs4  

4  7d7 ,effective date ,! am5dm5ts made 
by ?is section %all apply to taxable    
ye>s beg9n+ aft] ! date ( ! enactm5t (  
?is ,act4