,i  #aacth ,,congress  #ast ,session    
,h4 ,r4 #bbec  ,,in ,,the ,,house ,,of  
,,representatives  ,june #d1 #bjac ,mr4 
,schock 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
 consolidate the current education tax  
incentives into one credit against      
income tax for higher education         
expenses1 and for other purposes4  #a4  
,short title ,this ,act may be cited as 
the ,higher ,education and ,skills      
,obtainment ,act4  #b4 ,consolidation of
 education tax incentives into higher   
education and skills obtainment credit  
7a7 ,in ,general ,section #be;,a of the 
,internal ,revenue ,code of #aihf       
7relating to ,hope and ,lifetime        
,learning credits7 is amended to read as
 follows3  #be;,a4 ,higher education and
 skills obtainment credit  7a7          
,allowance of credit ,in the case of any
 eligible student for whom an election  
is in effect under this section for any 

taxable year1 there shall be allowed as 
a credit against the tax imposed by this
 chapter for the taxable year an amount 
equal to 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  7b7 ,limitations  7#a7  
,credit allowed only for #d taxable     
years ,the credit under subsection 7a7  
shall not be allowed for a taxable year 
with respect to the qualified tuition   
and related expenses of an eligible     
student if the student has completed    
7before the beginning of such taxable   
year7 #d years of any combination of    
postsecondary education at an eligible  
educational institution and instruction 
described in subsection 7c77#b77;,b74   
7#b7 ,limitation based on household     

income ,the amount which would 7but for 
this paragraph7 be taken into account   
under subsection 7a7 for the taxable    
year shall be reduced 7but not below    
zero7 by the amount which bears the same
 ratio to the amount which would be so  
taken into account as the excess 7if    
any7 of--  7,a7 the household income of 
the taxpayer for such taxable year over 
#djj percent of the poverty line1 bears 
to  7,b7 the amount equal to #ejj       
percent of the poverty line minus the   
amount equal to #djj percent of the     
poverty line4  7c7 ,definitions ,for    
purposes of this section--  7#a7        
,eligible student ,the term eligible    
student means1 with respect to any      
academic period1 any individual who--   
7,a7 meets the requirements of section  
#dhd7;a77#a7 of the ,higher ,education  
,act of #aife 7#bj ,u4,s4,c4            
#ajia7;a77#a771 as in effect on the date
 of the enactment of the ,taxpayer      
,relief ,act of #aiig1 and  7,b7 in the 
case of a student enrolled in a degree  

program1 is carrying at least  the      
normal full-time work load for the      
course of study the student is pursuing4
  7#b7 ,qualified tuition and related   
expenses ,the term qualified tuition and
 related expenses means tuition1 fees1  
and costs of course materials--  7,a7   
for education during the taxable year   
with respect to the attendance at an    
eligible educational institution during 
any academic period beginning in such   
taxable year 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 and     
7,b7 for a course of instruction from an
 eligible provider to acquire or improve
 job skills of the individual during the
 taxable year 7for education furnished  
during any academic period beginning in 
such taxable year74  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     
,taxpayer ,relief ,act of #aiig1 and    
7,b7 which is eligible to participate in
 a program under title ,,iv of the      
,higher ,education ,act of #aife4  7#d7 
,poverty line  7,a7 ,in general ,the    
term poverty line has the meaning given 
that term in section #baaj7;c77#e7 of   
the ,social ,security ,act 7#db         
,u4,s4,c4 #acig;jj7c77#e77 with respect 
to the taxpayer's family of the size    
involved4  7,b7 ,poverty line used ,the 
poverty line used shall be the most     
recently published poverty line as of   
the #ast day of the regular enrollment  
period for coverage during such calendar
 year4  7#e7 ,eligible provider ,the    
term eligible provider means provider of
 training services 7within the meaning  
of section #acd7;d77#d77;,d7 of the     
,workforce ,investment ,act of #aiih7   
7#bi ,u4,s4,c4 #bhfd7;d77#d77;,d77 who  
is identified in accordance with section

 #abb7;e77#c7 of such ,act 7#bi         
,u4,s4,c4 #bhdb7;e77#c774  7d7 ,special 
rules  7#a7 ,identification requirements
 ,no credit shall be allowed under      
subsection 7a7 to a taxpayer with       
respect to an eligible student unless   
the taxpayer includes on the return of  
tax for the taxable year--  7,a7 the    
name and social security number of such 
student1 and  7,b7 the employer         
identification number1 name1 and address
 of any institution or eligible provider
 to which tuition1 fees1 and costs of   
course materials were paid with respect 
to such student4  7#b7 ,adjustment for  
certain scholarships ,the expenses      
otherwise taken into account under      
subsection 7a7 with respect to an       
individual for an academic period shall 
be reduced 7before the application of   
subsections 7a7 and 7b77 by the sum of  
any amounts paid for the benefit of such
 individual which are allocable to such 
period as--  7,a7 a qualified           
scholarship which is excludable from    

gross income under section #aag1  7,b7  
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  7,c7 a ,federal 
,pell ,grant or a ,federal supplemental 
educational opportunity grant under     
subparts #a and #c1 respectively1 of    
part ,a of title ,,iv of the ,higher    
,education ,act of #aife 7#bj ,u4,s4,c4 
#ajgj;a and #ajgj;b et seq41            
respectively71 and  7,d7 a payment      
7other than a gift1 bequest1 devise1 or 
inheritance within the meaning of       
section #ajb7;a77 for such student'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#c7   
,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   
subsection 7a7 to such individual for   
such individual's taxable year1 and     
7,b7 amounts 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#d7 ,treatment of certain prepayments  
,if tuition1 fees1 or costs of course   
materials 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#e7 ,denial 
of double benefit ,no credit shall be   
allowed under this section for any      
expense for which deduction is allowed  
under any other provision of this       
chapter4  7#f7 ,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#g7 ,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  7#h7 ,supporting 
information ,no expense shall be taken  
into account under this section for a   
taxable year unless the taxpayer submits
 with the return of tax for the taxable 
year information supporting such        
expense4  7e7 ,election not ,to have    
section apply ,a taxpayer may elect not 
to have this section apply with respect 
to the expenses of an individual for any
 taxable year4  7f7 ,verification and   
confirmation of certain information ,in 
carrying out this section1 the          

,secretary shall utilize information    
from the ,secretary of ,education to    
confirm and verify information relating 
to educational institutions and         
students1 including the ,integrated     
,postsecondary ,education ,data ,system 
and the ,national ,student ,loan ,data  
,system4  7g7 ,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 expense which was taken into account
 in determining the amount of such      
credit4  4  7b7 ,repeal of deduction for
 qualified tuition and related expenses 
7#a7 ,in general ,part ,,vii of         
subchapter ,b of chapter #a of such     
,code 7relating to additional itemized  
deductions for individuals7 is amended  
by striking section #bbb4  7#b7         
,clerical amendment ,the table of       

sections for part ,,vii of subchapter ,b
 of chapter #a of such ,code is amended 
by striking the item relating to section
 #bbb4  7c7 ,information ,returns  7#a7 
,in general ,section #fjej,s7e7 of such 
,code is amended by striking subsection 
7g77#b7 and inserting subsection        
7d77#b74  7#b7 ,attendance ,paragraph   
7#b7 of section #fjej,s7b7 of such ,code
 is amended by redesignating            
subparagraph 7,c7 as subparagraph 7,d7  
and by inserting after subparagraph 7,b7
 the following new subparagraph3  7,c7  
the status of the individual for each   
academic period of the year for which   
payments are received as--  7i7 a       
full-time or part-time student1  7ii7 if
 a part-time student1 whether the       
individual is at least half time1 and   
7iii7 whether the student is a graduate 
student4  4  7d7 ,omission of           
identification information and number of
 years credit is claimed treated as     
mathematical or clerical error          
,subparagraph 7,j7 of section           

#fbac7;g77#b7 of such ,code is amended  
to read as follows3  7,j7 in the case of
 information required under section     
#be;,a 7relating to higher education    
obtainment credit7--  7i7 an omission of
 a correct social security number and   
employer identification number of any   
institution required to be included on a
 return under subsection 7d77#a7 of such
 section1 and  7ii7 an entry on the     
return claiming the credit in violation 
of the limitation under subsection      
7b77#a7 of such return1  4  7e7         
,conforming amendments  7#a7 ,section   
#fb7;a7 of such ,code is amended by     
striking paragraph 7#ah74  7#b7         
,subparagraph 7,a7 of section           
#hf7;b77#b7 of such ,code is amended by 
striking #bbb14  7#c7 ,subparagraph 7,b7
 of section #gb7t77#g7 of such ,code is 
amended by striking section             
#be;,a7g77#b7 and inserting section     
#be;,a7d77#b74  7#d7 ,subparagraph 7,a7 
of section #ace7;c77#d7 of such ,code is
 amended by striking #bbb14  7#e7       

,subparagraph 7,a7 of section           
#acg7;b77#c7 of such ,code is amended by
 striking #bbb14  7#f7 ,subparagraph    
7,a7 of section #aii7;d77#b7 of such    
,code is amended by striking #bbb14     
7#g7 ,clause 7ii7 of section            
#bai7;g77#c77;,a7 of such ,code is      
amended by striking #bbb14  7#h7 ,clause
 7i7 of section #bba7;b77#b77;,c7 of    
such ,code is amended by striking #bbb14
  7#i7 ,clause 7iii7 of section         
#dfi7;i77#c77;,f7 of such ,code is      
amended by striking #bba1 and #bbb and  
inserting and #bba4  7#aj7 ,subsection  
7d7 of section #bba of such ,code is    
amended--  7,a7 by striking section     
#be;,a7g77#b7 in paragraph 7#b77;,b7 and
 inserting section #be;,a7d77#b71 and   
7,b7 by striking section #be;,a7f77#b7  
in the second sentence of paragraph 7#b7
 and inserting section #be;,a7c77#c74   
7#aa7 ,section #bba7;d77#c7 of such     
,code is amended by striking section    
#be;,a7b77#c7 and inserting section     
#be;,a7c77#c74  7#ab7 ,subclause 7,i7 of

 section #ebi7;c77#c77;,b77v7 of such   
,code is amended by striking section    
#be;,a7g77#b7 and inserting             
#be;,a7d77#b74  7#ac7 ,clause 7i7 of    
section #ebi7;e77#c77;,b7 of such ,code 
is amended by striking section          
#be;,a7b77#c7 and inserting section     
#bba7;c77#c74  7#ad7 ,subclause 7,i7 of 
section #ecj7;d77#b77;,c77i7 of such    
,code is amended by striking section    
#be;,a7g77#b7 and inserting section     
#be;,a7d77#b74  7#ae7 ,clause 7iii7 of  
section #ecj7;d77#d77;,b7 of such ,code 
is amended by striking section          
#be;,a7g77#b7 and inserting             
#be;,a7d77#b74  7#af7 ,section #adjj,o  
of such ,code is amended by adding at   
the end the following flush sentence3   
,for purposes of this section1 any      
reference to section #be;,a shall be    
treated as a reference to such section  
as in effect on the day before the date 
of the enactment of this sentence4  4   
7#ag7 ,the table of sections for subpart
 ,a of part ,,iv of subchapter ,a of    

chapter #a of such ,code is amended by  
striking the item relating to section   
#be;,a and inserting the following3     
,sec4 #be;,a4 ,higher education and     
skills obtainment credit4  4  7f7 ,sense
 of ,congress ,it is the sense of       
,congress that any savings in revenues  
resulting from the enactment of this    
section shall be applied to the         
currently projected ,pell ,grant funding
 shortfall beginning in #bjae and to    
deficit reduction4  7g7 ,effective date 
,the amendments made by this section    
shall apply to expenses paid after      
,december #ca1 #bjac1 for education     
furnished in academic periods beginning 
after such date4