Exclusion from gross income of national service educational awards

(a) In general Paragraph (2) of section 117(c) of the Internal Revenue Code of 1986 is amended— (1) by striking or at the end of subparagraph (B), (2) by striking the period at the end of subparagraph (C) and inserting a comma, and (3) by adding at the end the following new subparagraphs: (D) subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12601 et seq.) as an educational award, or (E) subtitle K of title I of such Act as an educational benefit.. (b) Exclusion of discharge of student loan debt (1) In general Paragraph (4) of section 108(f) of such Code is amended— (A) by striking received under and inserting received— (A) under, and (B) by striking the period at the end and inserting, or (B) under subtitle D of title I of the National and Community Service Act of 1990 (42 U.S.C. 12601 et seq.) as an educational award or under subtitle K of title I of such Act as an educational benefit.. (2) Conforming amendment The heading for paragraph (4) of section 108(f) of such Code is amended by striking under national health service corps loan repayment program and certain state loan repayment programs and inserting under certain loan repayment programs. (c) Effective date The amendments made by this section shall apply to taxable years ending after the date of the enactment of this Act.