; and (2) by striking $24,000 and inserting $50,000 . (b) Exclusion from gross income (1) In general Section 117 of the Internal Revenue Code of 1986, as amended by the preceding provisions of this Act, is amended by adding at the end the following new subsection: (g) VA Education debt reduction program Gross income shall not include any loan repayments under subchapter VII of chapter 76 of title 38, United States Code. . (2) Effective date The amendment made by paragraph (1) shall apply to payments made after the date of the enactment of this Act, in taxable years ending after such date. 7. Exemption of health professional shortage areas from medicare graduate medical education caps (a) Direct graduate medical education Section 1886(h)(4)(F) of the Social Security Act ( 42 U.S.C. 1395ww(h)(4)(F) ) is amended— (1) in clause (i), by inserting clause (iii) and after subject to ; and (2) by adding at the end the following new clause: (iii) Increase allowed for health professional shortage areas For cost reporting periods beginning on or after January 1, 2018, clause (i) shall not apply in the case of a hospital or nonprovider setting located in a health professional shortage area (as defined in section 332 of the Public Health Service Act). . (b) Indirect medical education Section 1886(d)(5)(B) of the Social Security Act ( 42 U.S.C. 1395ww(d)(5)(B) ) is amended— (1) by redesignating the second clause (x), as added by section 5505(b) of the Patient Protection and Affordable Care Act ( Public Law 111–148 ), as clause (xi) and moving such clause 4 ems to the left, and realigning the left margins of subclauses (II) and (III) of such clause and items (aa), (bb), (cc), and (dd) of subclause (II) of such clause appropriately