EXCLUSION FOR CERTAIN EMPLOYER PAYMENTS OF STUDENT LOANS.

SEC. 2206. EXCLUSION FOR CERTAIN EMPLOYER PAYMENTS OF STUDENT LOANS. (a) In General.—Paragraph (1) of section 127(c) of the Internal Revenue Code of 1986 is amended by striking “and” at the end of subparagraph (A), by redesignating subparagraph (B) as subparagraph (C), and by inserting after subparagraph (A) the following new subparagraph: “(B) in the case of payments made before January 1, 2021, the payment by an employer, whether paid to the employee or to a lender, of principal or interest on any qualified education loan (as defined in section 221(d)(1)) incurred by the employee for education of the employee, and” . (b) [26 U.S.C. 221] Conforming Amendment; Denial of Double Benefit.—The first sentence of paragraph (1) of section 221(e) of the Internal Revenue Code of 1986is amended by inserting before the period the following: “, or for which an exclusion is allowable under section 127 to the taxpayer by reason of the payment by the taxpayer’s employer of any indebtedness on a qualified education loan of the taxpayer”. (c) [26 U.S.C. 127 note] Effective Date.—The amendments made by this section shall apply to payments made after the date of the enactment of this Act.