Exclusion from gross income of national service educational awards

(a) In general Section 117 of the Internal Revenue Code of 1986 (relating to qualified scholarships) is amended by adding at the end the following new subsection: (e) National service educational awards Gross income shall not include any amounts for payments specified in section 145(c) of the National and Community Service Act of 1990.. (b) Exclusion of discharge of student loan debt Subsection (f) of section 108 of such Code is amended by adding at the end the following new paragraph: (6) Payments under national service educational award programs In the case of an individual, gross income shall not include any amount received from a national service educational award under subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12601 et seq.).. (c) Effective Date The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.