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H.R. 3170House114th Congress (2015-2017)In Committee

Student Debt Repayment Fairness Act

To amend the Internal Revenue Code of 1986 to allow without penalty any 529 plan distributions used for student loans payments.

Sponsored by Richard B. NugentRep. Richard B. Nugent (R-FL)
Introduced July 22, 2015

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HouseIntro Referral Latest Action

Referred to the House Committee on Ways and Means.

Ways and Means Committee

July 22, 2015

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HouseIntro Referral

Introduced in House

July 22, 2015

HouseIntro Referral

Referred to the House Committee on Ways and Means.

Ways and Means Committee

July 22, 2015

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Introduced in HouseIssued July 22, 2015

I

114th CONGRESS

1st Session

H. R. 3170

IN THE HOUSE OF REPRESENTATIVES

July 22, 2015

Mr. Nugent 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 allow without penalty any 529 plan distributions used for student loans payments.

1.

Short title

This Act may be cited as the Student Debt Repayment Fairness Act.

2.

Student loan payments from qualified tuition plans not subject to penalty tax

(a)

In general

Section 529(c)(6) of the Internal Revenue Code of 1986 is amended—

(1)

by inserting (A) In general.— before The tax and moving the text 2 ems to the right; and

(2)

by adding at the end the following:

(B)

Student loans

(i)

In general

Subparagraph (A) shall not apply to any payment or distribution in any taxable year which is includible in gross income and is used to pay principal or interest on indebtedness incurred solely to pay qualified higher education expenses of the designated beneficiary or member of the family of the designated beneficiary which are attributable to education furnished during a period during which the beneficiary or family member was a student at the institution providing such education.

(ii)

Refinanced loans

For purposes of clause (i), the term indebtedness includes indebtedness used to refinance indebtedness described in clause (i).

.

(b)

Effective date

The amendment made by subsection (a) shall apply to payments made in taxable years beginning after December 31, 2014.