,,ii #aafth ,,congress #ast ,session ,s4 #fgf ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #f1 #bjai,mr4 ,peters 7for himself and ,mrs4 ,capito7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,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 or1 7#b7 by striking any amount received and inserting the following3 any amount which-- 7#a7 is received 1 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;a7 7other than an organization 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 education71 and 7,,ii7 is either a private foundation or a community trust described in section #agj7;b77#a77;,a77vi71 7ii7 which requires a grantee to live and work in an applicable community1 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 community ,for purposes of subparagraph 7,a77ii71 the term applicable community means any area that-- 7i7 is-- 7,i7 a low-income community 7as determined under section #de;,d7e771 or 7,,ii7 a county that has1 during the #aj-year period ending with the year in which the most recent census was conducted1 a net out-migration of inhabitants from the county of the population of the county at the beginning of such period1 and 7ii7 has a bachelor's degree attainment rate for the population of #be-cd year-olds that is below the national average for such population 7as determined based on data collected by the ,census ,bureau74 7,c7 ,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 ,regulatory authority ,section #aag of such ,code is amended by adding at the end the following new subsection3 7e7 ,regulations ,the ,secretary shall prescribe such reporting requirements and regulations as may be necessary or appropriate to carry out subsection 7a77#b71 including-- 7#a7 regulations defining under what conditions an individual is considered to live and work in a community for purposes of subsection 7b77#b77;,a77ii71 and 7#b7 regulations to ensure the implementation and effectiveness of such subsection4 4 7f7 ,effective date ,the amendments made by this section shall apply with respect to taxable years beginning after the date of enactment of this ,act4 7g7 ,reports 7#a7 ,secretary of ,treasury ,not later than #c years after the date of the enactment of this ,act1 and periodically thereafter1 the ,secretary of the ,treasury1 or the ,secretary's delegate1 shall submit to ,congress a report on the implementation and effectiveness of the amendments made by this section4 7#b7 ,comptroller ,general 7,a7 ,in general ,not later than #e years after the date of enactment of this ,act1 the ,comptroller ,general of the ,united ,states shall publish the result of a study on post-graduation scholarship grants to which section #aag of the ,internal ,revenue ,code of #aihf 7as amended by this section7 applies4 7,b7 ,contents ,the information published under subparagraph 7,a7 shall include the following3 7i7 ,a description of the characteristics of individuals who receive post-graduation scholarship grants4 7ii7 ,the length of time involved in such grants4 7iii7 ,the amount paid out under such grants4 7iv7 ,the disposition of any funds paid under such grants1 including the identity of any loan holders who benefit from such funds4