No CRS summary available for this bill.
This section amends IRC §117(a) to exclude from gross income any post-graduation scholarship grant paid on behalf of an individual (i.e., grants from qualifying 501(c)(3) private foundations or community trusts that repay qualified education loans incurred for higher education expenses, require the grantee to live and work in an applicable community with below-average bachelor's degree attainment rates per Census Bureau data, make payments directly to loan holders, and are not provided to employees of the granting organization or related entities). The section also (1) amends IRC §4945(g) to exclude such grants from taxable expenditures by private foundations; (2) amends IRC §221(e) to deny a student loan interest deduction for interest paid as part of such grants; (3) directs the Treasury Secretary to issue regulations under new IRC §117(e), including reporting requirements; and (4) requires (a) a Treasury report to Congress on implementation and effectiveness within three years of enactment and periodically thereafter, and (b) a GAO study within five years on grant duration, amounts paid, and fund dispositions (including loan holder identities). The amendments apply to taxable years beginning after the date of enactment.