help for students and parents act

8/17/2019 HELP for Students and Parents Act

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(Original Signature of Member)

114 TH CONGRESS2D SESSION H. R. ll

To amend the Internal Revenue Code of 1986 to provide incentives foremployers to establish student loan repayment programs and to makecontributions to qualified tuition programs on behalf of children of em-ployees.

IN THE HOUSE OF REPRESENTATIVES

Mr. D OLD introduced the following bill; which was referred to the Committeeon llllllllllllll

A BILLTo amend the Internal Revenue Code of 1986 to provide

incentives for employers to establish student loan repay-ment programs and to make contributions to qualifiedtuition programs on behalf of children of employees.

Be it enacted by the Senate and House of Representa-1

tives of the United States of America in Congress assembled,2

SECTION 1. SHORT TITLE.3

This Act may be cited as the ‘‘Higher Education4

Loan Payments for Students and Parents Act’’ or the5

‘‘HELP for Students and Parents Act’’.6

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2SEC. 2. EXCLUSION FOR EMPLOYER PAYMENT OF QUALI-1

FIED EDUCATION LOANS AND CERTAIN2

QUALIFIED TUITION PLAN CONTRIBUTIONS.3

(a) I N GENERAL .—Section 127(c)(1) of the Internal4

Revenue Code of 1986 is amended by striking ‘‘and’’ at5

the end of subparagraph (A), by redesignating subpara-6

graph (B) as subparagraph (D), and by inserting after7

subparagraph (A) the following new subparagraphs:8

‘‘(B) the payment by an employer of prin-9

cipal or interest on any qualified education loan10

(as defined in section 221(d)(1)) incurred by11

the employee,12

‘‘(C) any qualified dependent 529 contribu-13

tions (as defined in section 45S(d)) made by14

the employer, and’’.15

(b) E FFECTIVE D ATE .—The amendments made by16

this section shall apply to payments made by employers17

after December 31, 2016.18

SEC. 3. EMPLOYER PROVIDED HIGHER EDUCATION ASSIST-19

ANCE CREDIT.20

(a) I N GENERAL .—Subpart D of part IV of sub-21

chapter A of chapter 1 of the Internal Revenue Code of22

1986 is amended by adding at the end the following new23

section:24



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3‘‘SEC. 45S. EMPLOYER-PROVIDED HIGHER EDUCATION AS-1

SISTANCE CREDIT.2

‘‘(a) I N GENERAL .—For purposes of section 38, the3

employer-provided higher education assistance credit de-4

termined under this section for the taxable year is an5

amount equal to the sum of—6

‘‘(1) 50 percent of the student loan repayment7

expenditures of the taxpayer for the taxable year,8

and9

‘‘(2) 50 percent of the qualified dependent 52910

contributions made by the taxpayer for the taxable11

year.12

‘‘(b) D OLLAR L IMITATION .—The amount taken into13

account under subsection (a)(2) with respect to any em-14

ployee for any taxable year shall not exceed $5,250.15

‘‘(c) S TUDENT L OAN REPAYMENT E XPENDITURE .—16

For purposes of this section, the term ‘student loan repay-17

ment expenditure’ means any amount paid by an employer18

for principal or interest on any qualified education loan19

(as defined in section 221(d)(1)) incurred by an employee.20

‘‘(d) Q UALIFIED DEPENDENT 529 C ONTRIBUTION .—21

For purposes of this section—22

‘‘(1) I N GENERAL .—The term ‘qualified de-23

pendent 529 contribution’ means any amount con-24

tributed by an employer to a qualified tuition pro-25



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gram the designated beneficiary of which is a quali-1

fying child of an employee.2

‘‘(2) Q UALIFYING CHILD .—The term ‘qualifying3

child’ means a child who—4

‘‘(A) has not attained the age of 19 at the5

time of the contribution, or6

‘‘(B) is a student who has not attained the7

age of 24 at the time of the contribution.8

‘‘(e) S PECIAL RULES .—9

‘‘(1) S ELF -EMPLOYED INDIVIDUALS .—The term10

‘employee’ includes for any year, an individual who11

is an employee within the meaning of section12

401(c)(1) (relating to self-employed individuals).13

‘‘(2) E MPLOYER .—An individual who owns the14

entire interest in an unincorporated trade or busi-15

ness shall be treated as his own employer. A part-16

nership shall be treated as the employer of each17

partner who is an employee within the meaning of18

paragraph (2).’’.19

(b) C REDIT P ART OF GENERAL B USINESS CREDIT .—20

Section 38(b) of such Code is amended by striking ‘‘plus’’21

at the end of paragraph (35), by striking the period at22

the end of paragraph (36) and inserting ‘‘, plus’’, and by23

adding at the end the following new paragraph:24



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‘‘(37) the employer-provided higher education1

assistance credit determined under section 45S.’’.2

(c) C LERICAL A MENDMENT .—The table of sections3

for subpart D of part IV of subchapter A of chapter 14

of such Code is amended by adding at the end the fol-5

lowing new item:6

‘‘Sec. 45S. Employer-provided higher education assistance credit.’’.

(d) E FFECTIVE D ATE .—The amendments made by7

this section shall apply to taxable years beginning after8

December 31, 2016.9



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