Nurse Corps Tax Parity Act of 2025

This legislation seeks to amend the Internal Revenue Code of 1986 to provide tax exemptions for specific payments received through Nurse Corps programs. Its primary goal is to ensure that financial assistance provided to nurses, in exchange for service, is not considered taxable income. The bill makes two key changes to the tax code. First, it modifies section 108(f)(4) to include payments from the Nurse Corps Scholarship Program (section 846 of the Public Health Service Act) alongside the Nurse Corps Loan Repayment Program (section 338B(g)), ensuring both are treated similarly regarding discharge of indebtedness income. Second, it amends section 117(c)(2)(A) to explicitly classify the Nurse Corps Scholarship Program as a qualified scholarship , thereby exempting its payments from gross income. These amendments will apply to amounts received in taxable years beginning after the bill's enactment, providing significant financial relief to participating nurses.