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
To amend the Internal Revenue Code of 1986 to exclude certain health professions education scholarship and loan payments from gross income.
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.