H.R. 1581 — Introduced in House

I 114th CONGRESS 1st Session H. R. 1581 IN THE HOUSE OF REPRESENTATIVES March 24, 2015 Mr. Gallego (for himself and Mr. Zinke) 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 exclude from gross income the discharge of certain student loans of deceased or disabled veterans. 1. Short title This Act may be cited as the Veterans Education Tax Security Act of 2015 or the VETS Act of 2015. 2. Discharge of certain student loans of deceased or disabled veterans excluded from gross income (a) In general Section 108(f) of the Internal Revenue Code of 1986 is amended by adding to the end the following new paragraph: (5) Discharge of certain student loans of deceased or disabled veterans excluded from gross income (A) In general In the case of— (i) any veteran or member of the Armed Forces who dies, (ii) any veteran whom the Secretary of Veterans Affairs determines has a service connected disability rated as total, or (iii) with respect to any loan made to an individual described in clause (i) or (ii), any cosigner of such loan, gross income shall not include any amount received under 437(a) of the Higher Education Act of 1965. (B) Certain parental loans In the case of a parent of a member of the Armed Forces who dies, gross income shall not include any amount received under 437(d) of the Higher Education Act of 1965. . (b) Effective date The amendment made by this section shall apply to taxable years beginning after December 31, 2014.