,i  #aafth ,,congress  #b;d ,session    
,h4 ,r4 #efag  ,,in ,,the ,,house ,,of  
,,representatives  ,january #ae1        
#bjbj,mr4 ,meeks 7for himself1 ,ms4     
,velzquez1 ,mr4 ,rose of ,new ,york1    
,mrs4 ,carolyn ,b4 ,maloney of ,new     
,york1 ,ms4 ,meng1 ,mr4 ,suozzi1 ,mr4   
,engel1 ,ms4 ,clarke of ,new ,york1 ,mr4
 ,espaillat1 ,mr4 ,nadler1 ,mr4         
,serrano1 ,mr4 ,jeffries1 ,mr4 ,king of 
,new ,york1 ,ms4 ,ocasio-,cortez1 and   
,miss ,rice of ,new ,york7 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      
discharges of indebtedness on taxi      
medallions from gross income4  #a4      
,short title ,this ,act may be cited as 
the ,taxi ,medallion ,loan ,forgiveness 
,debt ,relief ,act of #bjbj4  #b4       
,exclusion of discharges of qualified   
taxi medallion indebtedness  7a7 ,in    
general ,section #ajh7;a77#a7 of the    
,internal ,revenue ,code of #aihf is    

amended by striking or at the end of    
subparagraph 7,d71 by striking the      
period at the end of subparagraph 7,e7  
and inserting 1 or1 and by inserting    
after subparagraph 7,e7 the following   
new subparagraph3  7,f7 in the case of a
 taxpayer other than a ,c corporation1  
the indebtedness discharged is qualified
 taxi medallion indebtedness which is   
discharged before ,january #a1 #bjbc4  4
  7b7 ,special rules relating to        
qualified taxi medallion indebtedness   
,section #ajh of such ,code is amended  
by adding at the end the following new  
subsection3  7j7 ,special rules relating
 to qualified taxi medallion            
indebtedness  7#a7 ,basis reduction ,the
 amount excluded from gross income by   
reason of subsection 7a77#a77;,e7 shall 
be applied to reduce 7but not below     
zero7 the basis of the taxi medallions  
of the taxpayer that secure the         
discharged indebtedness4  7#b7          
,qualified taxi medallion indebtedness  
,for purposes of this section-- 7,a7 ,in

 general ,the term qualified taxi       
medallion indebtedness means            
indebtedness which--  7i7 is secured by 
a taxi medallion1 and  7ii7 with respect
 to which such taxpayer makes an        
election to have this paragraph apply4  
7,b7 ,limitation ,with respect to a     
taxpayer1 the aggregate amount treated  
as qualified taxi medallion indebtedness
 for any period shall not exceed        
#b1jjj1jjj 7#a1jjj1jjj in the case of a 
married individual filing a separate    
return74  7,c7 ,exception for certain   
discharges not related to taxpayer's    
financial condition ,subsection         
7a77#a77;,f7 shall not apply to the     
discharge of a loan if the discharge is 
on account of services performed for the
 lender or any other factor not directly
 related to a decline in the value of   
the taxi medallion or to the financial  
condition of the taxpayer4  7,d7        
,ordering rule ,if any loan is          
discharged1 in whole or in part1 and    
only a portion of such loan is qualified

 taxi medallion indebtedness1 subsection
 7a77#a77;,f7 shall apply only to so    
much of the amount discharged as exceeds
 the amount of the loan 7as determined  
immediately before such discharge7 which
 is not qualified taxi medallion        
indebtedness4  4  7c7 ,conforming       
amendments  7#a7 ,section #ajh7;a77#b7  
of such ,code is amended by adding at   
the end the following new subparagraph3 
7,d7 ,taxi medallion exclusion takes    
precedence over insolvency exclusion    
unless elected otherwise ,paragraph     
7#a77;,b7 shall not apply to a discharge
 to which paragraph 7#a77;,f7 applies   
unless the taxpayer elects to apply     
paragraph 7#a77;,b7 in lieu of paragraph
 7#a77;,f74  4  7d7 ,effective date ,the
 amendments made by this section shall  
apply to discharges of indebtedness     
after ,december #ca1 #bjaf4