,i  #aafth ,,congress  #ast ,session    
,h4 ,r4 #djch  ,,in ,,the ,,house ,,of  
,,representatives  ,july #be1 #bjai,mr4 
,la,hood 7for himself and ,ms4 ,sewell  
of ,alabama7 introduced the following   
bill2 which was referred to the         
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to exclude certain      
post-graduation scholarship grants from 
gross income in the same manner as      
qualified scholarships to promote       
economic growth4  #a4 ,short title ,this
 ,act may be cited as the ,workforce    
,development ,through ,post-,graduation 
,scholarships ,act of #bjai4  #b4       
,post-graduation scholarship grants     
excluded from gross income in same      
manner as qualified scholarships  7a7   
,in general ,section #aag7;a7 of the    
,internal ,revenue ,code of #aihf is    
amended--  7#a7 by striking the period  
at the end and inserting 1 or2  7#b7 by 
striking any amount received and        
inserting the following3  any amount    

which-- 7#a7 is received  2 and  7#c7 by
 adding at the end the following new    
paragraph3  7#b7 is a post-graduation   
scholarship grant received by or paid on
 behalf of an individual4  4  7b7       
,post-,graduation scholarship grant     
,section #aag7;b7 of such ,code is      
amended by redesignating paragraph 7#b7 
as paragraph 7#c7 and by inserting after
 paragraph 7#a7 the following new       
paragraph3  7#b7 ,post-graduation       
scholarship grant  7,a7 ,in general ,the
 term post-graduation scholarship grant 
means any grant program-- 7i7 which is  
established by an organization which--  
7,i7 is described in section            
#eja7;c77#c7 and exempt from tax under  
section #eja7;a71 and  7,,ii7 is either 
a private foundation 7other than a      
private foundation established by an    
organization described in section       
#agj7;b77#a77;,a77ii7 or an organization
 described in section                   
#agj7;b77#a77;,a77iii7 the principal    
purpose or function of which is the     

provision of medical education7 or a    
community trust described in section    
#agj7;b77#a77;,a77vi71  7ii7 which is   
designed to encourage individuals to    
serve in occupations of unmet needs or  
in areas of unmet needs 7as such terms  
are used in section                     
#ajh7;f77#b77;,d77ii771 and  7iii7 under
 which1 in accordance with the          
conditions of a grant1 such organization
 repays any portion of an applicable    
education loan incurred by an           
individual4  7,b7 ,applicable education 
loan ,for purposes of subparagraph      
7,a77iii71 the term applicable education
 loan means1 with respect to any        
individual1 a qualified education loan  
7as defined in section #bba7;d77#a77    
incurred to pay qualified higher        
education expenses 7as defined in       
section #bba7;d77#b77 of such           
individual4  4  7c7 ,amount not treated 
as taxable expenditure by private       
foundation ,section #dide7;g7 of such   
,code is amended by striking or at the  

end of paragraph 7#b71 by striking the  
period at the end of paragraph 7#c7 and 
inserting 1 or1 and by adding at the end
 the following new paragraph3  7#d7 the 
grant is a post-graduation scholarship  
grant 7as defined in section            
#aag7;b77#b774  4  7d7 ,denial of double
 benefit ,section #bba7;e7 of such ,code
 is amended by redesignating paragraphs 
7#b7 and 7#c7 as paragraphs 7#c7 and    
7#d71 respectively1 and by inserting    
after paragraph 7#a7 the following new  
paragraph3  7#b7 ,denial of double      
benefit in case of post-graduation      
scholarship grants ,any interest which  
is paid as part of a post-graduation    
scholarship grant and excluded from     
gross income under section #aag shall   
not be taken into account under this    
section4  4  7e7 ,effective date ,the   
amendments made by this section shall   
apply to taxable years beginning after  
the date of the enactment of this ,act4