A bill to amend the Internal Revenue Code of 1954 to provide that amounts received under certain conditional health scholarships and discharges of certain health student loans will be exempt from taxation.

Amends the Internal Revenue Code to provide that the determination of whether amounts received as a government health scholarship are includible in gross income shall be made without regard to certain matters, including agreements to serve in the Armed Forces or the Public Health Service Corps. Provides that no amount shall be included in gross income by reason of a discharge of a government health student loan in return for a promise to perform services in a health manpower shortage area.