This bill would change parts of the Internal Revenue Code so that "qualified student loan bonds" are not subject to a state's private activity volume cap and are not treated as private activity bonds for purposes of the alternative minimum tax (AMT). It amends section 146(g) to add qualified student loan bonds to the list of volume-cap exceptions, changes section 149(f)(6) so that in pooled financings an "ultimate borrower" does not include a student borrower, and amends section 57(a)(5)(C) to exclude qualified student loan bonds from the AMT private activity bond rules. The changes apply to obligations issued after the date the law is enacted. The bill was introduced April 7, 2025, and referred to the House Committee on Ways and Means.
If this bill becomes law, entities that issue qualified student loan bonds could issue those bonds without using a state's volume cap and those bonds would not be treated as private activity bonds for AMT rules. This change would apply only to bonds issued after the law takes effect. No publicly available information explains direct effects on student borrowers, investors, state budgets, or other taxpayers.
No publicly available information on budgetary effects, revenue changes, or a Congressional Budget Office (CBO) score is included in the bill text or metadata.
No publicly available information about supporters' official statements or arguments is included in the bill text or metadata.
No publicly available information about opponents' official statements or arguments is included in the bill text or metadata.