Exclusion of income from discharge of indebtedness

(a) In general Section 108 of the Internal Revenue Code of 1986 is amended by adding at the end the following new subsection: (j) Outcomes-Based financing products In the case of an individual, gross income does not include any amount which (but for this subsection) would be includible in gross income by reason of— (1) the discharge (in whole or in part) of any outcomes-based loan (as defined in section 140(h) of the Truth in Lending Act), or (2) the termination or alteration (in whole or in part) of the individual's payment obligation under an outcomes-based payment agreement (as so defined).. (b) Effective date The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.