H.R. 7878

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7878 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7878

To amend the Internal Revenue Code of 1986 to provide an exclusion from 
gross income for AmeriCorps educational awards.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

March 9, 2026

Mr. Larson of Connecticut (for himself and Mr. Bacon) 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 provide an exclusion from 
gross income for AmeriCorps educational awards.

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 ``Segal AmeriCorps Educational Award 
Tax Relief Act of 2026''.

SEC. 2. EXCLUSION FROM GROSS INCOME OF AMERICORPS EDUCATIONAL AWARDS.

(a) In General.--Section 117(c)(2) of the Internal Revenue Code of 
1986 is amended by striking ``or'' at the end of subparagraph (B), by 
striking the period at the end of subparagraph (C) and inserting ``, 
or'', and by adding at the end the following new subparagraph:
``(D) a national service educational award under 
subtitle D of title I of the National and Community 
Service Act of 1990.''.
(b) Discharge of Student Loan Debt.--Section 108(f) of such Code is 
amended by adding at the end the following new paragraph:
``(6) Payments under national service educational awards.--
In the case of an individual, gross income shall not include 
any amount received under a national service educational award 
under subtitle D of title I of the National and Community 
Service Act of 1990.''.
(c) Effective Dates.--
(1) In general.--The amendments made by subsection (a) 
shall apply to amounts received in taxable years ending after 
the date of the enactment of this Act.
(2) Discharge of student loan debt.--The amendment made by 
subsection (b) shall apply to discharges of indebtedness in 
taxable years ending after the date of the enactment of this 
Act.
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