ELIMINATION OF 60-MONTH LIMIT AND INCREASE IN INCOME LIMITATION ON STUDENT LOAN INTEREST DEDUCTION.

SEC. 412. 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 (relating to interest on education loans), as amended by section 402(b)(2)(B), 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) is amended by striking “section 221(e)(1)” and inserting “section 221(d)(1)”.115 STAT. 64 (3) Effective date.—The amendments made by this subsection shall apply with respect to any loan interest paid after December 31, 2001, in taxable years ending after such date. (b) Increase in Income Limitation.— (1) In general.—Section 221(b)(2)(B) (relating to amount of reduction) is amended by striking clauses (i) and (ii) and inserting the following: “(i) the excess of— “(I) the taxpayer’s modified adjusted gross income for such taxable year, over “(II) $50,000 ($100,000 in the case of a joint return), bears to “(ii) $15,000 ($30,000 in the case of a joint return).”. (2) Conforming amendment.—Section 221(g)(1) is amended by striking “$40,000 and $60,000 amounts” and inserting “$50,000 and $100,000 amounts”. (3) Effective date.—The amendments made by this subsection shall apply to taxable years ending after December 31, 2001.