To amend the Internal Revenue Code of 1986 to exclude from gross income the portion of a scholarship which covers living expenses while away from home.

Amends the Internal Revenue Code to exclude from gross income scholarship amounts used for a student's reasonable living expenses while attending school away from home.

 
HR 391 IH
101st CONGRESS
1st Session
 H. R. 391
To amend the Internal Revenue Code of 1986 to exclude from gross income the
portion of a scholarship which covers living expenses while away from home.
IN THE HOUSE OF REPRESENTATIVES
January 3, 1989
Mr. SOLOMON 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 exclude from gross income the
portion of a scholarship which covers living expenses while away from home.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. SCHOLARSHIP EXCLUSION TO APPLY TO AMOUNTS RECEIVED FOR LIVING
EXPENSES.
  (a) IN GENERAL- Paragraph (2) of section 117(b) of the Internal Revenue
  Code of 1986 (defining qualified tuition and related expenses) is amended
  by striking `and' at the end of subparagraph (A), by striking the period
  at the end of subparagraph (B) and inserting `, and', and by adding at
  the end thereof the following new subparagraph:
  `(C) reasonable living expenses while away from home.'
  (b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to
  taxable years ending after the date of the enactment of this Act.