; and (B) by adding at the end the following: (4) Upon completion by that individual of a fourth year of such service, the Secretary shall pay another 25 percent of the principal of, and the interest on each such loan. . (3) Tax exclusion for nursing education loan repayments (A) In general Part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 139F the following new section: 139G. Nursing education loan repayments (a) In general Gross income shall not include the value of any loan repayment (of principal or interest) made by the Secretary of Health and Human Services under section 846 of the Public Health Service Act. (b) Denial of double benefit Notwithstanding any other provision of this subtitle, no deduction or credit shall be allowed for, or by reason of, any expenditure to the extent of the amount excluded under subsection (a) for any subsidy, rebate or other amount which was provided with respect to such expenditure. The adjusted basis of any property shall be reduced by the amount excluded under subsection (a) which was provided with respect to such property. . (B) Conforming amendment Section 1016(a) of such Code is amended by striking and at the end of paragraph (36), by striking the period at the end of paragraph (37) and inserting , and , and by adding at the end the following new paragraph: (38) to the extent provided in section 139G(b). . (C) Clerical amendment The table of sections for part III of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 139F the following new item: Sec. 139G. Nursing education loan repayments. . (D) Effective date The amendments made by this paragraph shall apply to payments made after the date of the enactment of this Act, in taxable years ending after such date. (d) Public Health Workforce Loan Repayment Program Section 776(g) of the Public Health Service Act ( 42 U.S.C. 295f–1(g) ) is amended to read as follows: (g) Appropriations To carry out this section, there