,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #agch  ,,in ,,the ,,house ,,of  
,,representatives  ,april #be1 #bjac    
,mr4 ,doggett 7for himself1 ,mr4 ,danny 
,k4 ,davis of ,illinois1 ,mr4 ,becerra1 
,mr4 ,blumenauer1 ,mr4 ,crowley1 ,mr4   
,kind1 ,mr4 ,larson of ,connecticut1    
,mr4 ,carson of ,indiana1 ,mr4 ,lewis1  
,mr4 ,mc,dermott1 ,mr4 ,pascrell1 ,mr4  
,rangel1 ,ms4 ,linda ,t4 ,snchez of     
,california1 ,ms4 ,schwartz1 ,mr4       
,levin1 ,mr4 ,van ,hollen1 ,mr4         
,hinojosa1 ,mr4 ,andrews1 ,mrs4 ,capps1 
,mr4 ,crdenas1 ,ms4 ,castor of ,florida1
 ,mrs4 ,christensen1 ,mr4 ,cicilline1   
,mr4 ,cohen1 ,mr4 ,cuellar1 ,mr4        
,cummings1 ,ms4 ,fudge1 ,mr4 ,gallego1  
,mr4 ,garamendi1 ,mr4 ,al ,green of     
,texas1 ,mr4 ,gene ,green of ,texas1    
,mr4 ,hastings of ,florida1 ,mr4 ,holt1 
,mr4 ,honda1 ,ms4 ,eddie ,bernice       
,johnson of ,texas1 ,ms4 ,lee of        
,california1 ,mr4 ,loebsack1 ,ms4       
,matsui1 ,ms4 ,mc,collum1 ,ms4 ,moore1  
,mr4 ,pastor of ,arizona1 ,mr4 ,ryan of 

,ohio1 ,ms4 ,schakowsky1 ,ms4           
,shea-,porter1 ,mr4 ,sherman1 ,mr4      
,sires1 ,ms4 ,speier1 ,mr4 ,thompson of 
,mississippi1 ,mr4 ,vela1 ,mr4 ,welch1  
,mr4 ,yarmuth1 ,mr4 ,pocan1 ,ms4        
,jackson ,lee1 ,mrs4 ,negrete ,mc,leod1 
,mr4 ,vargas1 ,mr4 ,tonko1 ,mr4         
,de,fazio1 ,mr4 ,grijalva1 ,ms4         
,edwards1 ,ms4 ,wilson of ,florida1 ,ms4
 ,titus1 ,mrs4 ,davis of ,california1   
,mr4 ,nadler1 ,mr4 ,rush1 ,ms4 ,bass1   
,mr4 ,butterfield1 ,mr4 ,capuano1 ,mr4  
,cleaver1 ,mr4 ,doyle1 ,mr4 ,fattah1    
,mr4 ,deutch1 ,mr4 ,kildee1 and ,mr4    
,price of ,north ,carolina7 introduced  
the following bill2 which was referred  
to the ,committee on ,ways and ,means   
,a ,,bill  ,to amend the ,internal      
,revenue ,code of #aihf to extend and   
modify the ,american ,opportunity ,tax  
,credit1 and for other purposes4  #a4   
,short title ,this ,act may be cited as 
the ,american ,opportunity ,tax ,credit 
,act of #bjac4  #b4 ,extension and      
modification of ,american ,opportunity  

,tax ,credit  7a7 ,in general ,section  
#be;,a of the ,internal ,revenue ,code  
of #aihf is amended to read as follows3 
#be;,a4 ,american ,opportunity ,tax     
,credit  7a7 ,allowance of credit ,in   
the case of an individual who is an     
eligible student for any taxable year1  
there shall be allowed as a credit      
against the tax imposed by this chapter 
for such taxable year the amount        
determined under subsection 7b7 with    
respect to such individual4  7b7 ,amount
 of credit  7#a7 ,student enrolled at   
least  time ,in the case of an eligible 
student who is carrying at least  the   
normal full-time workload for the course
 of study the student is pursuing1 the  
amount determined under this subsection 
with respect to such individual is the  
sum of--  7,a7 #ajj percent of so much  
of the qualified tuition and related    
expenses paid by the taxpayer during the
 taxable year 7for education furnished  
to the eligible student during any      
academic period beginning in such       

taxable year7 as does not exceed #b1jjj1
 plus  7,b7 #be percent of such expenses
 so paid as exceeds #b1jjj but does not 
exceed #d1jjj4  7#b7 ,other students ,in
 the case of an eligible student not    
described in paragraph 7#a71 the amount 
determined under this subsection with   
respect to such individual is #be       
percent of so much of the qualified     
tuition and related expenses paid by the
 taxpayer during the taxable year 7for  
education furnished to the eligible     
student during any academic period      
beginning in such taxable year7 as does 
not exceed #aj1jjj4  7c7 ,limitation    
based on modified adjusted gross income 
7#a7 ,in general ,the amount which would
 7but for this paragraph7 be taken into 
account under this section for the      
taxable year shall be reduced 7but not  
below zero7 by the amount determined    
under paragraph 7#b74  7#b7 ,amount of  
reduction ,the amount determined under  
this paragraph is the amount which bears
 the same ratio to the amount which     

would be so taken into account as--     
7,a7 the excess of--  7i7 the taxpayer's
 modified adjusted gross income for such
 taxable year1 over  7ii7 #hj1jjj       
7#afj1jjj in the case of a joint        
return71 bears to  7,b7 #aj1jjj 7#bj1jjj
 in the case of a joint return74  7#c7  
,modified adjusted gross income ,for    
purposes of this paragraph1 the term    
modified adjusted gross income means the
 adjusted gross income of the taxpayer  
for the taxable year increased by any   
amount excluded from gross income under 
section #iaa1 #ica1 or #icc4  7d7 ,other
 limitations and special rules ,for     
purposes of this section3  7#a7         
,lifetime dollar limitation ,in the case
 of qualified tuition and related       
expenses with respect to any eligible   
student1 the aggregate amount of the    
credits allowed in the taxable year and 
any prior taxable year for such eligible
 student 7whether beginning before or   
after ,american ,opportunity ,tax       
,credit ,act of #bjac7 shall not exceed 

#ae1jjj1 determined without regard to   
whether--  7,a7 such credits are claimed
 on the return of tax filed by the      
eligible student or by another taxpayer1
 or  7,b7 such expenses are treated as  
paid by the eligible student or by      
another taxpayer4  ,if1 in any taxable  
year1 the aggregate amount of such      
credits equals or exceeds #ae1jjj1 the  
amount allowed as a credit under        
subsection 7a7 in any subsequent taxable
 year with respect to such student shall
 be zero4  7#b7 ,identification         
requirement ,no credit shall be allowed 
under this section to a taxpayer with   
respect to the qualified tuition and    
related expenses of an eligible student 
unless the taxpayer includes the name   
and taxpayer identification number of   
such eligible student on the return of  
tax for the taxable year4  7#c7         
,adjustment for certain scholarships1   
etc  7,a7 ,in general ,the amount of    
qualified tuition and related expenses  
otherwise taken into account under this 

section with respect to an individual   
for an academic period shall be reduced 
7before the application of subsections  
7b7 and 7c77 by the sum of any amounts  
paid for the benefit of such individual 
which are allocable to such period as-- 
7i7 a qualified scholarship which is    
excludable from gross income under      
section #aag1  7ii7 an educational      
assistance allowance under chapter #cj1 
#ca1 #cb1 #cd1 or #ce of title #ch1     
,united ,states ,code1 or under chapter 
#afjf of title #aj1 ,united ,states     
,code1 and  7iii7 a payment 7other than 
a gift1 bequest1 devise1 or inheritance 
within the meaning of section #ajb7;a77 
for such individual's educational       
expenses1 or attributable to such       
individual's enrollment at an eligible  
educational institution1 which is       
excludable from gross income under any  
law of the ,united ,states4  7,b7       
,coordination with ,pell ,grants not    
used for qualified tuition and related  
expenses ,any amount determined with    

respect to an individual under          
subparagraph 7,a7 which is attributable 
to a ,federal ,pell ,grant under section
 #dja of the ,higher ,education ,act of 
#aife shall be reduced 7but not below   
zero7 by the amount of the expenses     
7other than qualified tuition and       
related expenses7 which are taken into  
account in determining the cost of      
attendance 7as defined in section #dgb  
of the ,higher ,education ,act of #aife1
 as in effect on the date of the        
enactment of the ,american ,opportunity 
,tax ,credit ,act of #bjac7 of such     
individual at an eligible educational   
institution for the academic period for 
which the credit under this section is  
being determined4  7#d7 ,treatment of   
expenses paid by dependent ,if a        
deduction under section #aea with       
respect to an individual is allowed to  
another taxpayer for a taxable year     
beginning in the calendar year in which 
such individual's taxable year begins-- 
7,a7 no credit shall be allowed under   

this section to such individual for such
 individual's taxable year1 and  7,b7   
qualified tuition and related expenses  
paid by such individual during such     
individual's taxable year shall be      
treated for purposes of this section as 
paid by such other taxpayer4  7#e7      
,treatment of certain prepayments ,if   
qualified tuition and related expenses  
are paid by the taxpayer during a       
taxable year for an academic period     
which begins during the first #c months 
following such taxable year1 such       
academic period shall be treated for    
purposes of this section as beginning   
during such taxable year4  7#f7 ,denial 
of double benefit ,no credit shall be   
allowed under this section for any      
expense for which a deduction is allowed
 under any other provision of this      
chapter4  7#g7 ,no credit for married   
individuals filing separate returns ,if 
the taxpayer is a married individual    
7within the meaning of section #ggjc71  
this section shall apply only if the    

taxpayer and the taxpayer's spouse file 
a joint return for the taxable year4    
7#h7 ,nonresident aliens ,if the        
taxpayer is a nonresident alien         
individual for any portion of the       
taxable year1 this section shall apply  
only if such individual is treated as a 
resident alien of the ,united ,states   
for purposes of this chapter by reason  
of an election under subsection 7g7 or  
7h7 of section #fjac4  7e7 ,election not
 ,to have ,section apply ,a taxpayer may
 elect not to have this section apply   
with respect to the qualified tuition   
and related expenses of an individual   
for any taxable year4  7f7 ,definitions 
,for purposes of this section3  7#a7    
,eligible student ,the term eligible    
student means1 with respect to any      
taxable year1 an individual who--  7,a7 
is enrolled for at least one academic   
period which begins during such taxable 
year at an eligible educational         
institution1 and  7,b7 meets the        
requirements of section #dhd7;a77#a7 of 

the ,higher ,education ,act of #aife1 as
 in effect on the date of the enactment 
of the ,american ,opportunity ,tax      
,credit ,act of #bjac4  7#b7 ,qualified 
tuition and related expenses  7,a7 ,in  
general ,the term qualified tuition and 
related expenses means tuition1 fees1   
and course materials required for the   
enrollment or attendance of--  7i7 the  
taxpayer1  7ii7 the taxpayer's spouse1  
or  7iii7 any dependent of the taxpayer 
with respect to whom the taxpayer is    
allowed a deduction under section #aea1 
at an eligible educational institution  
for courses of instruction of such      
individual at such institution4  7,b7   
,exception for education involving      
sports1 etc ,such term does not include 
expenses with respect to any course or  
other education involving sports1 games1
 or hobbies1 unless such course or other
 education is part of the individual's  
degree program4  7,c7 ,exception for    
nonacademic fees ,such term does not    
include student activity fees1 athletic 

fees1 insurance expenses1 or other      
expenses unrelated to an individual's   
academic course of instruction4  7#c7   
,eligible educational institution ,the  
term eligible educational institution   
means an institution--  7,a7 which is   
described in section #dha of the ,higher
 ,education ,act of #aife1 as in effect 
on the date of the enactment of the     
,american ,opportunity ,tax ,credit ,act
 of #bjac1 and  7,b7 which is eligible  
to participate in a program under title 
,,iv of such ,act4  7g7 ,portion of     
credit refundable ,forty percent of the 
credit allowed under this section for a 
taxable year 7determined after          
application of subsections 7c77#a7 and  
7d7 and without regard to this          
subsection and section #bf7;a77#b71 as  
the case may be7 shall be treated as a  
credit allowable under subpart ,c 7and  
not allowed under this section74 ,the   
preceding sentence shall not apply to   
any taxpayer for any taxable year if    
such taxpayer is a child to whom        

subsection 7g7 of section #a applies for
 such taxable year4  7h7 ,inflation     
,adjustment ,in the case of any taxable 
year beginning in a calendar year after 
#bjad1 each dollar amount in subsections
 7b7 and 7c77#b71 and 7d77#a7 shall be  
increased by an amount equal to--  7#a7 
such dollar amount1 multiplied by  7#b7 
the cost-of-living adjustment determined
 under section #a7;f77#c7 for the       
calendar year in which the taxable year 
begins1 determined by substituting      
calendar year #bjac for calendar year   
#aiib in subparagraph 7,b7 thereof4  ,in
 the case of subsections 7b7 and        
7d77#a71 any increase determined under  
the preceding sentence shall be rounded 
to the nearest multiple of #ej4 ,in the 
case of subsection 7c77#b71 any increase
 determined under the preceding sentence
 shall be rounded to the nearest        
multiple of #ejj4  7i7 ,regulations ,the
 ,secretary may prescribe such          
regulations as may be necessary or      
appropriate to carry out this section1  

including regulations providing for a   
recapture of the credit allowed under   
this section in cases where there is a  
refund in a subsequent taxable year of  
any amount which was taken into account 
in determining the amount of such       
credit4  4  7b7 ,retention of limitation
  7#a7 ,in general ,subparagraph 7,d7 of
 section #be;,a7b77#b7 of the ,internal 
,revenue ,code of #aihf1 as in effect   
before the enactment of the ,american   
,opportunity ,tax ,credit ,act of #bjac 
hereby transferred to section #be;,a of 
such ,code1 as amended by subsection    
7a71 and is inserted as a new subsection
 7d77#i7 of section #be;,a1 as so       
amended4  7#b7 ,conforming amendment    
,paragraph 7#i7 of section #be;,a7d7 of 
such ,code1 as transferred and inserted 
by paragraph 7#a71 is amended by        
striking ,the ,hope ,scholarship ,credit
 under subsection 7a77#a7 and inserting 
,the credit under subsection 7a74  7c7  
,clerical amendment ,the item relating  
to section #be;,a in the table of       

sections for subpart ,a of part ,,iv of 
subchapter ,a of chapter #a of the      
,internal ,revenue ,code of #aihf is    
amended to read as follows3  ,sec4      
#be;,a4 ,american ,opportunity ,tax     
,credit4  4  7d7 ,conforming amendments 
7#a7 ,subparagraph 7,b7 of section      
#gb7t77#g7 of such ,code is amended by  
striking #be;,a7g77#b7 and inserting    
#be;,a7d77#c74  7#b7 ,paragraph 7#b7 of 
section #bba7;d7 of such ,code is       
amended--  7,a7 by striking             
#be;,a7g77#b7 in subparagraph 7,b7 and  
inserting #be;,a7d77#c71 and  7,b7 by   
striking #be;,a7f77#b7 and inserting    
#be;,a7f77#c74  7#c7 ,paragraph 7#c7 of 
section #bba7;d7 of such ,code is       
amended by striking #be;,a7b77#c7 and   
inserting #be;,a7f77#a7 7but only with  
respect to a student who is carrying at 
least  the normal full-time workload for
 the course of study the student is     
pursuing74  7#d7 ,clause 7v7 of section 
#ebi7;c77#c77;,b7 of such ,code is      
amended--  7,a7 by striking             

#be;,a7g77#b7 in subclause 7,i7 and     
inserting #be;,a7d77#c71 and  7,b7 by   
striking ,hope and ,lifetime ,learning  
credits in the heading and inserting    
,american ,opportunity ,credit4  7#e7   
,clause 7i7 of section #ebi7;e77#c77;,b7
 of such ,code is amended by striking   
#be;,a7b77#c7 and inserting             
#be;,a7f77#a7 7but only with respect to 
a student who is carrying at least  the 
normal full-time workload for the course
 of study the student is pursuing74     
7#f7 ,subparagraph 7,c7 of section      
#ecj7;d77#b7 of such ,code is amended-- 
7,a7 by striking #be;,a7g77#b7 in clause
 7i77,i7 and inserting #be;,a7d77#c71   
and  7,b7 by striking ,hope and         
,lifetime ,learning credits in the      
heading and inserting ,american         
,opportunity ,credit4  7#g7 ,clause     
7iii7 of section #ecj7;d77#d77;,b7 of   
such ,code is amended by striking       
#be;,a7g77#b7 and inserting             
#be;,a7d77#c74  7#h7 ,section #adjj,o of
 such ,code is amended--  7,a7 by       

striking #be;,a7f77#b7 and inserting    
#be;,a7f77#c71  7,b7 by inserting 7as in
 effect on the date of the enactment of 
this section7 after #be;,a7b77#a7 in    
paragraph 7#b71 and  7,c7 by inserting  
7as in effect on the date of the        
enactment of this section7 after        
#be;,a7c77#a7 in paragraph 7#c74  7#i7  
,subsection 7e7 of section #fjej,s of   
such ,code is amended by striking       
subsection 7g77#b7 and inserting        
subsection 7d77#c74  7#aj7 ,subparagraph
 7,a7 of section #fbaa7;b77#d7 of such  
,code is amended by striking subsection 
7i77#f7 and inserting subsection 7g74   
7#aa7 ,subparagraph 7,j7 of section     
#fbac7;g77#b7 of such ,code is amended  
by striking #be;,a7g77#a7 and inserting 
#be;,a7d77#b74  7e7 ,effective date ,the
 amendments made by this section shall  
apply to taxable years beginning after  
,december #ca1 #bjac4  #c4 ,expansion of
 ,pell ,grant exclusion from gross      
income  7a7 ,in general ,paragraph 7#a7 
of section #aag7;b7 of the ,internal    

,revenue ,code of #aihf is amended by   
striking received by an individual and  
all that follows and inserting 8received
 by an individual--  7#a7 as a          
scholarship or fellowship grant to the  
extent the individual establishes that1 
in accordance with the conditions of the
 grant1 such amount was used for        
qualified tuition and related expenses1 
or  7#b7 as a ,federal ,pell ,grant     
under section #dja of the ,higher       
,education ,act of #aife 7as in effect  
on the date of the enactment of the     
,american ,opportunity ,tax ,credit ,act
 of #bjac74  4  7b7 ,effective date ,the
 amendment made by this section shall   
apply to taxable years beginning after  
,december #ca1 #bjac4