Generating Opportunity by Forgiving Educational Debt for Service Act of 2003

Generating Opportunity by Forgiving Educational Debt for Service Act of 2003 - Amends the Internal Revenue Code and the Social Security Act to exclude: (1) from the gross income of a Federal employee amounts the Federal Government repays on the employee's student loans; and (2) such payments from counting as wages for the calculation of Social Security taxes.

[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 512 Introduced in Senate (IS)]







108th CONGRESS
  1st Session
                                 S. 512

To amend the Internal Revenue Code of 1986 to exclude from gross income 
amounts paid on behalf of Federal employees under Federal student loan 
                          repayment programs.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 4, 2003

 Mr. Voinovich (for himself, Mrs. Lincoln, and Mr. Durbin) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to exclude from gross income 
amounts paid on behalf of Federal employees under Federal student loan 
                          repayment programs.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Generating Opportunity by Forgiving 
Educational Debt for Service Act of 2003''.

SEC. 2. EXCLUSION FOR STUDENT LOAN REPAYMENTS BY THE FEDERAL 
              GOVERNMENT.

    (a) Exclusion From Gross Income.--Section 108(f) of the Internal 
Revenue Code of 1986 (relating to student loans) is amended by adding 
at the end the following:
            ``(4) Student loan repayments by federal government.--In 
        the case of an individual, gross income does not include any 
        payments made by the Federal Government on behalf of such 
        individual under--
                    ``(A) section 5379 of title 5, United States Code; 
                or
                    ``(B) any other similar Federal program for its 
                employees.''.
    (b) Exclusion From Wages.--
            (1) In general.--Section 3121(a) of such Code (defining 
        wages) is amended--
                    (A) in paragraph (20), by striking ``or'' at the 
                end;
                    (B) in paragraph (21), by striking the period at 
                the end and inserting ``; or''; and
                    (C) by adding at the end the following:
            ``(22) any payment excluded from gross income under section 
        108(f)(4) (relating to student loan repayments by the Federal 
        Government).''.
            (2) Social security act.--Section 209(a) of the Social 
        Security Act (42 U.S.C. 409(a)) is amended by adding at the end 
        the following:
            ``(19) Any payment excluded from gross income under section 
        108(f)(4) of the Internal Revenue Code of 1986 (relating to 
        student loan repayments by Federal Government).''.
    (c) Effective Date.--The amendments made by this section shall 
apply to payments made in taxable years beginning after December 31, 
2002.
                                 <all>