S 152 IS
107th CONGRESS
1st Session
S. 152
To amend the Internal Revenue Code of 1986 to eliminate the 60-month
limit and increase the income limitation on the student loan interest
deduction.
IN THE SENATE OF THE UNITED STATES
January 23, 2001
Mr. GRASSLEY (for himself and Mr. BAUCUS) 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 eliminate the 60-month
limit and increase the income limitation on the student loan interest
deduction.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. ELIMINATION OF 60-MONTH LIMIT AND INCREASE IN INCOME LIMITATION
ON STUDENT LOAN INTEREST DEDUCTION.
(a) ELIMINATION OF 60-MONTH LIMIT-
(1) IN GENERAL- Section 221 of the Internal Revenue Code of 1986
(relating to interest on education loans) is amended by striking subsection
(d) and by redesignating subsections (e), (f), and (g) as subsections (d),
(e), and (f), respectively.
(2) CONFORMING AMENDMENT- Section 6050S(e) of such Code is amended by
striking `section 221(e)(1)' and inserting `section 221(d)(1)'.
(3) EFFECTIVE DATE- The amendments made by this subsection shall apply
with respect to any loan interest paid after December 31, 2000, in taxable
years ending after such date.
(b) INCREASE IN INCOME LIMITATION-
(1) IN GENERAL- Section 221(b)(2)(B) of the Internal Revenue Code of
1986 (relating to amount of reduction) is amended by striking clauses (i)
and (ii) and inserting the following:
`(I) the taxpayer's modified adjusted gross income for such
taxable year, over
`(II) $50,000 (twice such dollar amount in the case of a joint
return), bears to
(2) CONFORMING AMENDMENT- Section 221(g)(1) of such Code is amended by
striking `$40,000 and $60,000 amounts' and inserting `$50,000 amount'.
(3) EFFECTIVE DATE- The amendments made by this subsection shall apply
to taxable years ending after December 31, 2000.
END