S.Amdt. 2663

SA 2663. Ms. CANTWELL (for herself, Mr. Thomas, Mr. Durbin, and Mr. Leahy) submitted an amendment intended to be proposed by her to the bill S. 1637, to amend the Internal Revenue Code of 1986 to comply with the World Trade Organization rulings on the FSC/ETI benefit in a manner that preserves jobs and production activities in the United States, to reform and simplify the international taxation rules of the United States, and for other purposes; which was ordered to lie on the table; as follows:

At the appropriate place, insert the following:

SEC. __. EXCLUSION FOR PAYMENTS TO INDIVIDUALS UNDER NATIONAL HEALTH SERVICE CORPS LOAN REPAYMENT PROGRAM AND CERTAIN STATE LOAN REPAYMENT PROGRAMS.

(a) In General.--Section 108(f) of the Internal Revenue Code of 1986 (relating to student loans) is amended by adding at the end the following new paragraph:

“(4) Payments under national health service corps loan repayment program and certain state loan repayment programs.--In the case of an individual, gross income shall not include any amount received under section 338B(g) of the Public Health Service Act or under a State program described in section 338I of such Act.”.

(b) Treatment for Purposes of Employment Taxes.--Each of the following provisions of the Internal Revenue Code of 1986 is amended by inserting “108(f)(4),” after “74(c),”:

(1) Section 3121(a)(20).

(2) Section 3231(e)(5).

(3) Section 3306(b)(16).

(4) Section 3401(a)(19).

(5) Section 209(a)(17) of the Social Security Act.

(c) Effective Date.--The amendments made by this section shall apply to amounts received by an individual in taxable years beginning after December 31, 2003.