115 STAT. 64 PUBLIC LAW 107-16—JUNE 7, 2001 Applicability. 26 USC 221 note. 26 USC 221. Applicability. 26 USC 221 note. Applicability. 26 USC 117 note. (3) EFFECTIVE DATE. —The amendments made by this subsection shall apply with respect to any loan interest paid after December 31, 2001, in taxable years ending after such date. (b) INCREASE IN INCOME LIMITATION. — (1) IN GENERAL.— Section 221(b)(2)(B) (relating to amount of reduction) is amended by striking clauses (i) and (ii) and inserting the following: "(i) the excess of— "(I) the taxpayer's modified adjusted gross income for such taxable year, over "(II) $50,000 ($100,000 in the case of a joint return), bears to "(ii) $15,000 ($30,000 in the case of a joint return).". (2) CONFORMING AMENDMENT.—Section 221(g)(1) is amended by striking "$40,000 and $60,000 amounts" and inserting "$50,000 and $100,000 amounts". (3) EFFECTIVE DATE. —The amendments made by this subsection shall apply to taxable years ending after December 31, 2001. SEC. 413. EXCLUSION OF CERTAIN AMOUNTS RECEIVED UNDER THE NATIONAL HEALTH SERVICE CORPS SCHOLARSHIP PRO- GRAM AND THE F. EDWARD HEBERT ARMED FORCES HEALTH PROFESSIONS SCHOLARSHIP AND FINANCIAL ASSISTANCE PROGRAM. (a) IN GENERAL.—Section 117(c) (relating to the exclusion from gross income amounts received as a qualified scholarship) is amended— (1) by striking "Subsections (a)" and inserting the following: "(1) IN GENERAL.— Except as provided in paragraph (2), subsections (a)", and (2) by adding at the end the following new paragraph: "(2) EXCEPTIONS. — Paragraph (1) shall not apply to any amount received by an individual under— "(A) the National Health Service Corps Scholarship Program under section 338A(g)(l)(A) of the Public Health Service Act, or "(B) the Armed Forces Health Professions Scholarship and Financial Assistance program under subchapter I of chapter 105 of title 10, United States Code.". (b) EFFECTIVE DATE. —The amendments made by subsection (a) shall apply to amounts received in taxable years beginning after December 31, 2001. Subtitle C—Liberalization of Tax-Exempt Financing Rules for Public School Construction SEC. 421. ADDITIONAL INCREASE IN ARBITRAGE REBATE EXCEPTION FOR GOVERNMENTAL BONDS USED TO FINANCE EDU- CATIONAL FACILITIES. (a) IN GENERAL.—Section 148(f)(4)(D)(vii) (relating to increase in exception for bonds financing public school capital expenditures)
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