Bill Details
HR.593 - 119th Congress
Status
Latest action
2025-01-21 - Referred to the House Committee on Ways and Means.
Introduced Date
2025-01-21
Policy Area
Taxation
Committees
View committees (1)
Sponsors
Cosponsors
7
0
0
AI Summary This summary was generated by AI from the bill text. AI can get information wrong.
This bill would change federal tax rules so that certain scholarships and loan repayment or loan forgiveness payments for health professions are not counted as taxable income. In simple terms, people who receive support to study for a health care career, or who get help paying back their health education loans through approved public or state programs, would not have to pay income tax on those amounts. The goal is to make it easier to attract and keep health workers, especially in areas that do not have enough doctors, nurses, or other health professionals.
- It removes from taxable income payments from several public health service loan repayment programs.
- It also covers state loan repayment or forgiveness programs that are meant to improve access to health care in underserved areas or places with health worker shortages.
- It expands tax-free treatment for certain health professions scholarships, including some federal scholarship programs and a Native Hawaiian health care scholarship program.
- The change would apply to amounts received in tax years beginning after the bill becomes law.
Official Summaries
No summaries available
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 593 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 593
To amend the Internal Revenue Code of 1986 to exclude certain health
professions education scholarship and loan payments from gross income.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 21, 2025
Ms. Tokuda (for herself, Mrs. Miller of West Virginia, Mr. Panetta, and
Mr. Steube) introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to exclude certain health
professions education scholarship and loan payments from gross income.
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 ``Strengthening Pathways to Health
Professions Act''.
SEC. 2. TAX TREATMENT OF CERTAIN HEALTH PROFESSIONS EDUCATION PAYMENTS.
(a) In General.--Section 108(f)(4) of the Internal Revenue Code of
1986 is amended to read as follows:
``(4) Payments under certain public health service act loan
repayment programs and certain state loan repayment programs.--
In the case of an individual, gross income shall not include
any amount received under--
``(A) a loan repayment program under section
338B(g), 846(a), 738(a), 775, or 781 of the Public
Health Service Act,
``(B) a State program described in section 338I of
the Public Health Service Act, or
``(C) any other State loan repayment or loan
forgiveness program that is intended to provide for the
increased availability of health care services in
underserved or health professional shortage areas (as
determined by such State).''.
(b) Qualified Scholarships.--Section 117(c)(2) of such Code is
amended by redesignating subparagraphs (B) and (C) as subparagraphs (E)
and (F), respectively, and by inserting after subparagraph (A) the
following new subparagraphs:
``(B) the scholarship program under section 846 of
such Act,
``(C) the scholarship program under section 338K of
such Act, and
``(D) the scholarship program under section 10 of
the Native Hawaiian Health Care Improvement Act,''.
(c) Effective Date.--The amendments made by this section shall
apply to amounts received in taxable years beginning after the date of
the enactment of this Act.
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