S. 3761

119 S3761 IS: Student Loan Bond Expansion Act of 2026
 U.S. Senate
 2026-02-03
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 EN
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 II  119th CONGRESS  2d Session  S. 3761  IN THE SENATE OF THE UNITED STATES   February 3, 2026   Mr. Grassley  (for himself,  Mr. Welch , and  Mr. Cassidy ) introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
To amend the Internal Revenue Code of 1986 to exempt qualified student loan bonds from the volume cap and the alternative minimum tax.
1.
Short title
This Act may be cited as the   Student Loan Bond Expansion Act of 2026  .
2.
Qualified student loan bonds exempt from volume cap and alternative minimum tax
(a)
Exemption from volume cap
(1)
In general
 Section 146(g)  of the Internal Revenue Code of 1986 is amended by redesignating paragraphs (2) through (6) as paragraphs (3) through (7), respectively, and by inserting after paragraph (1) the following new paragraph:
(2)
any qualified student loan bond,
 .
(2)
Special rule for application of pooled financing bond rules
Section 149(f)(6) of such Code is amended by adding at the end the following new subparagraph:
(C)
Special rule for qualified student loan bonds
For purposes of subparagraph (A), in the case of any qualified student loan bond, the term  ultimate borrower  shall not include any student borrower.
 .
(3)
Conforming amendment
Section 146(g) of such Code is amended by striking  Paragraphs (4) and (5)  in the last sentence and inserting  Paragraphs (5) and (6) .
(b)
Exemption from alternative minimum tax
 Section 57(a)(5)(C)  of the Internal Revenue Code of 1986 is amended by redesignating clauses (iv), (v), and (vi) as clauses (v), (vi), and (vii), respectively, and by inserting after clause (iii) the following new clause:
(iv)
Exception for qualified student loan bonds
For purposes of clause (i), the term  private activity bond  shall not include any bond issued after the date of the enactment of this clause if such bond is a qualified student loan bond (as defined in section 144(b)). The preceding sentence shall not apply to any refunding bond unless such preceding sentence applied to the refunded bond (or in the case of a series of refundings, the original bond).
 .
(c)
Effective dates
The amendments made by this section shall apply to obligations issued after the date of the enactment of this Act.