,i #aac? ,,congress #a/ ,session ,h4 ,r4 #bbec ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,june #d1 #bjac ,mr4 ,s*ock introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,ways & ,means ,a ,,bill ,to am5d ! ,int]nal ,rev5ue ,code ( #aihf to consolidate ! curr5t education tax inc5tives into "o cr$it aga9/ income tax = high] education exp5ses1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,high] ,education & ,skills ,obta9m5t ,act4 #b4 ,consolidation ( education tax inc5tives into high] education & skills obta9m5t cr$it 7a7 ,9 ,g5]al ,section #be;,a ( ! ,int]nal ,rev5ue ,code ( #aihf 7relat+ to ,hope & ,lifetime ,le>n+ cr$its7 is am5d$ to read z foll[s3 #be;,a4 ,high] education & skills obta9m5t cr$it 7a7 ,all[ance ( cr$it ,9 ! case ( any eligible /ud5t = :om an election is 9 effect "u ?is section = any taxable ye>1 !re %all be all[$ z a cr$it aga9/ ! tax impos$ by ?is *apt] = ! taxable ye> an am\nt equal to ! sum (-- 7#a7 #ajj p]c5t ( s mu* ( ! qualifi$ tuition & relat$ exp5ses paid by ! taxpay] dur+ ! taxable ye> 7= education furni%$ to ! eligible /ud5t dur+ any academic p]iod beg9n+ 9 su* taxable ye>7 z does n exce$ #b1jjj1 plus 7#b7 #be p]c5t ( su* exp5ses s paid z exce$s #b1jjj b does n exce$ #d1jjj4 7b7 ,limitations 7#a7 ,cr$it all[$ only = #d taxable ye>s ,! cr$it "u subsection 7a7 %all n be all[$ = a taxable ye> ) respect to ! qualifi$ tuition & relat$ exp5ses ( an eligible /ud5t if ! /ud5t has complet$ 7be=e ! beg9n+ ( su* taxable ye>7 #d ye>s ( any comb9ation ( po/second>y education at an eligible educational in/itution & in/ruction describ$ 9 subsection 7c77#b77;,b74 7#b7 ,limitation bas$ on h\sehold income ,! am\nt :i* w\ld 7b = ?is p>agraph7 be tak5 into acc\nt "u subsection 7a7 = ! taxable ye> %all be r$uc$ 7b n bel[ z]o7 by ! am\nt :i* be>s ! same ratio to ! am\nt :i* w\ld be s tak5 into acc\nt z ! excess 7if any7 (-- 7,a7 ! h\sehold income ( ! taxpay] = su* taxable ye> ov] #djj p]c5t ( ! pov]ty l9e1 be>s to 7,b7 ! am\nt equal to #ejj p]c5t ( ! pov]ty l9e m9us ! am\nt equal to #djj p]c5t ( ! pov]ty l9e4 7c7 ,def9itions ,= purposes ( ?is section-- 7#a7 ,eligible /ud5t ,! t]m eligible /ud5t means1 ) respect to any academic p]iod1 any individual :o-- 7,a7 meets ! requirem5ts ( section #dhd7;a77#a7 ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajia7;a77#a771 z 9 effect on ! date ( ! enactm5t ( ! ,taxpay] ,relief ,act ( #aiig1 & 7,b7 9 ! case ( a /ud5t enroll$ 9 a degree program1 is c>ry+ at lea/ ! normal full-"t "w load = ! c\rse ( /udy ! /ud5t is pursu+4 7#b7 ,qualifi$ tuition & relat$ exp5ses ,! t]m qualifi$ tuition & relat$ exp5ses means tuition1 fees1 & co/s ( c\rse mat]ials-- 7,a7 = education dur+ ! taxable ye> ) respect to ! att5dance at an eligible educational in/itution dur+ any academic p]iod beg9n+ 9 su* taxable ye> (-- 7i7 ! taxpay]1 7ii7 ! taxpay]'s sp\se1 or 7iii7 any dep5d5t ( ! taxpay] ) respect to :om ! taxpay] is all[$ a d$uction "u section #aea1 & 7,b7 = a c\rse ( in/ruction f an eligible provid] to acquire or improve job skills ( ! individual dur+ ! taxable ye> 7= education furni%$ dur+ any academic p]iod beg9n+ 9 su* taxable ye>74 7#c7 ,eligible educational in/itution ,! t]m eligible educational in/itution means an in/itution-- 7,a7 :i* is describ$ 9 section #dha ( ! ,high] ,education ,act ( #aife1 z 9 effect on ! date ( ! enactm5t ( ! ,taxpay] ,relief ,act ( #aiig1 & 7,b7 :i* is eligible to p>ticipate 9 a program "u title ,,iv ( ! ,high] ,education ,act ( #aife4 7#d7 ,pov]ty l9e 7,a7 ,9 g5]al ,! t]m pov]ty l9e has ! mean+ giv5 t t]m 9 section #baaj7;c77#e7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #acig;jj7c77#e77 ) respect to ! taxpay]'s family ( ! size involv$4 7,b7 ,pov]ty l9e us$ ,! pov]ty l9e us$ %all be ! mo/ rec5tly publi%$ pov]ty l9e z ( ! #a/ day ( ! regul> enrollm5t p]iod = cov]age dur+ su* cal5d> ye>4 7#e7 ,eligible provid] ,! t]m eligible provid] means provid] ( tra9+ s]vices 7)9 ! mean+ ( section #acd7;d77#d77;,d7 ( ! ,work=ce ,inve/m5t ,act ( #aiih7 7#bi ,u4,s4,c4 #bhfd7;d77#d77;,d77 :o is id5tifi$ 9 accordance ) section #abb7;e77#c7 ( su* ,act 7#bi ,u4,s4,c4 #bhdb7;e77#c774 7d7 ,special rules 7#a7 ,id5tification requirem5ts ,no cr$it %all be all[$ "u subsection 7a7 to a taxpay] ) respect to an eligible /ud5t unless ! taxpay] includes on ! return ( tax = ! taxable ye>-- 7,a7 ! "n & social security numb] ( su* /ud5t1 & 7,b7 ! employ] id5tification numb]1 "n1 & address ( any in/itution or eligible provid] to :i* tuition1 fees1 & co/s ( c\rse mat]ials 7 paid ) respect to su* /ud5t4 7#b7 ,adju/m5t = c]ta9 s*ol>%ips ,! exp5ses o!rwise tak5 into acc\nt "u subsection 7a7 ) respect to an individual = an academic p]iod %all be r$uc$ 7be=e ! application ( subsections 7a7 & 7b77 by ! sum ( any am\nts paid = ! b5efit ( su* individual :i* are allocable to su* p]iod z-- 7,a7 a qualifi$ s*ol>%ip :i* is excludable f gross income "u section #aag1 7,b7 an educational assi/ance all[ance "u *apt] #cj1 #ca1 #cb1 #cd1 or #ce ( title #ch1 ,unit$ ,/ates ,code1 or "u *apt] #afjf ( title #aj1 ,unit$ ,/ates ,code1 7,c7 a ,f$]al ,pell ,grant or a ,f$]al supplem5tal educational opportunity grant "u subp>ts #a & #c1 respectively1 ( "p ,a ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajgj;a & #ajgj;b et seq41 respectively71 & 7,d7 a paym5t 7o!r ?an a gift1 beque/1 devise1 or inh]itance )9 ! mean+ ( section #ajb7;a77 = su* /ud5t's educational exp5ses1 or attributable to su* individual's enrollm5t at an eligible educational in/itution1 :i* is excludable f gross income "u any law ( ! ,unit$ ,/ates4 7#c7 ,treatm5t ( exp5ses paid by dep5d5t ,if a d$uction "u section #aea ) respect to an individual is all[$ to ano!r taxpay] = a taxable ye> beg9n+ 9 ! cal5d> ye> 9 :i* su* individual's taxable ye> beg9s-- 7,a7 no cr$it %all be all[$ "u subsection 7a7 to su* individual = su* individual's taxable ye>1 & 7,b7 am\nts paid by su* individual dur+ su* individual's taxable ye> %all be treat$ = purposes ( ?is section z paid by su* o!r taxpay]4 7#d7 ,treatm5t ( c]ta9 prepaym5ts ,if tuition1 fees1 or co/s ( c\rse mat]ials are paid by ! taxpay] dur+ a taxable ye> = an academic p]iod :i* beg9s dur+ ! fir/ #c mon?s foll[+ su* taxable ye>1 su* academic p]iod %all be treat$ = purposes ( ?is section z beg9n+ dur+ su* taxable ye>4 7#e7 ,d5ial ( d\ble b5efit ,no cr$it %all be all[$ "u ?is section = any exp5se = :i* d$uction is all[$ "u any o!r provision ( ?is *apt]4 7#f7 ,no cr$it = m>ri$ individuals fil+ sep>ate returns ,if ! taxpay] is a m>ri$ individual 7)9 ! mean+ ( section #ggjc71 ?is section %all apply only if ! taxpay] & ! taxpay]'s sp\se file a jo9t return = ! taxable ye>4 7#g7 ,nonresid5t ali5s ,if ! taxpay] is a nonresid5t ali5 individual = any portion ( ! taxable ye>1 ?is section %all apply only if su* individual is treat$ z a resid5t ali5 ( ! ,unit$ ,/ates = purposes ( ?is *apt] by reason ( an election "u subsection 7g7 or 7h7 ( section #fjac4 7#h7 ,support+ in=mation ,no exp5se %all be tak5 into acc\nt "u ?is section = a taxable ye> unless ! taxpay] submits ) ! return ( tax = ! taxable ye> in=mation support+ su* exp5se4 7e7 ,election n ,to h section apply ,a taxpay] may elect n to h ?is section apply ) respect to ! exp5ses ( an individual = any taxable ye>4 7f7 ,v]ification & confirmation ( c]ta9 in=mation ,9 c>ry+ out ?is section1 ! ,secret>y %all utilize in=mation f ! ,secret>y ( ,education to confirm & v]ify in=mation relat+ to educational in/itutions & /ud5ts1 includ+ ! ,integrat$ ,po/second>y ,education ,data ,sy/em & ! ,national ,/ud5t ,loan ,data ,sy/em4 7g7 ,regulations ,! ,secret>y may prescribe su* regulations z may be necess>y or appropriate to c>ry out ?is section1 includ+ regulations provid+ = a recapture ( ! cr$it all[$ "u ?is section 9 cases :]e !re is a refund 9 a subsequ5t taxable ye> ( any exp5se :i* 0 tak5 into acc\nt 9 det]m9+ ! am\nt ( su* cr$it4 4 7b7 ,repeal ( d$uction = qualifi$ tuition & relat$ exp5ses 7#a7 ,9 g5]al ,"p ,,vii ( sub*apt] ,b ( *apt] #a ( su* ,code 7relat+ to additional itemiz$ d$uctions = individuals7 is am5d$ by /rik+ section #bbb4 7#b7 ,cl]ical am5dm5t ,! table ( sections = "p ,,vii ( sub*apt] ,b ( *apt] #a ( su* ,code is am5d$ by /rik+ ! item relat+ to section #bbb4 7c7 ,in=mation ,returns 7#a7 ,9 g5]al ,section #fjej,s7e7 ( su* ,code is am5d$ by /rik+ subsection 7g77#b7 & ins]t+ subsection 7d77#b74 7#b7 ,att5dance ,p>agraph 7#b7 ( section #fjej,s7b7 ( su* ,code is am5d$ by r$esignat+ subp>agraph 7,c7 z subp>agraph 7,d7 & by ins]t+ aft] subp>agraph 7,b7 ! foll[+ new subp>agraph3 7,c7 ! /atus ( ! individual = ea* academic p]iod ( ! ye> = :i* paym5ts are receiv$ z-- 7i7 a full-"t or "p-"t /ud5t1 7ii7 if a "p-"t /ud5t1 :e!r ! individual is at lea/ half "t1 & 7iii7 :e!r ! /ud5t is a graduate /ud5t4 4 7d7 ,omission ( id5tification in=mation & numb] ( ye>s cr$it is claim$ treat$ z ma!matical or cl]ical error ,subp>agraph 7,j7 ( section #fbac7;g77#b7 ( su* ,code is am5d$ to read z foll[s3 7,j7 9 ! case ( in=mation requir$ "u section #be;,a 7relat+ to high] education obta9m5t cr$it7-- 7i7 an omission ( a correct social security numb] & employ] id5tification numb] ( any in/itution requir$ to be includ$ on a return "u subsection 7d77#a7 ( su* section1 & 7ii7 an entry on ! return claim+ ! cr$it 9 violation ( ! limitation "u subsection 7b77#a7 ( su* return1 4 7e7 ,con=m+ am5dm5ts 7#a7 ,section #fb7;a7 ( su* ,code is am5d$ by /rik+ p>agraph 7#ah74 7#b7 ,subp>agraph 7,a7 ( section #hf7;b77#b7 ( su* ,code is am5d$ by /rik+ #bbb14 7#c7 ,subp>agraph 7,b7 ( section #gb7t77#g7 ( su* ,code is am5d$ by /rik+ section #be;,a7g77#b7 & ins]t+ section #be;,a7d77#b74 7#d7 ,subp>agraph 7,a7 ( section #ace7;c77#d7 ( su* ,code is am5d$ by /rik+ #bbb14 7#e7 ,subp>agraph 7,a7 ( section #acg7;b77#c7 ( su* ,code is am5d$ by /rik+ #bbb14 7#f7 ,subp>agraph 7,a7 ( section #aii7;d77#b7 ( su* ,code is am5d$ by /rik+ #bbb14 7#g7 ,clause 7ii7 ( section #bai7;g77#c77;,a7 ( su* ,code is am5d$ by /rik+ #bbb14 7#h7 ,clause 7i7 ( section #bba7;b77#b77;,c7 ( su* ,code is am5d$ by /rik+ #bbb14 7#i7 ,clause 7iii7 ( section #dfi7;i77#c77;,f7 ( su* ,code is am5d$ by /rik+ #bba1 & #bbb & ins]t+ & #bba4 7#aj7 ,subsection 7d7 ( section #bba ( su* ,code is am5d$-- 7,a7 by /rik+ section #be;,a7g77#b7 9 p>agraph 7#b77;,b7 & ins]t+ section #be;,a7d77#b71 & 7,b7 by /rik+ section #be;,a7f77#b7 9 ! second s5t5ce ( p>agraph 7#b7 & ins]t+ section #be;,a7c77#c74 7#aa7 ,section #bba7;d77#c7 ( su* ,code is am5d$ by /rik+ section #be;,a7b77#c7 & ins]t+ section #be;,a7c77#c74 7#ab7 ,subclause 7,i7 ( section #ebi7;c77#c77;,b77v7 ( su* ,code is am5d$ by /rik+ section #be;,a7g77#b7 & ins]t+ #be;,a7d77#b74 7#ac7 ,clause 7i7 ( section #ebi7;e77#c77;,b7 ( su* ,code is am5d$ by /rik+ section #be;,a7b77#c7 & ins]t+ section #bba7;c77#c74 7#ad7 ,subclause 7,i7 ( section #ecj7;d77#b77;,c77i7 ( su* ,code is am5d$ by /rik+ section #be;,a7g77#b7 & ins]t+ section #be;,a7d77#b74 7#ae7 ,clause 7iii7 ( section #ecj7;d77#d77;,b7 ( su* ,code is am5d$ by /rik+ section #be;,a7g77#b7 & ins]t+ #be;,a7d77#b74 7#af7 ,section #adjj,o ( su* ,code is am5d$ by add+ at ! end ! foll[+ flu% s5t5ce3 ,= purposes ( ?is section1 any ref]5ce to section #be;,a %all be treat$ z a ref]5ce to su* section z 9 effect on ! day be=e ! date ( ! enactm5t ( ?is s5t5ce4 4 7#ag7 ,! table ( sections = subp>t ,a ( "p ,,iv ( sub*apt] ,a ( *apt] #a ( su* ,code is am5d$ by /rik+ ! item relat+ to section #be;,a & ins]t+ ! foll[+3 ,sec4 #be;,a4 ,high] education & skills obta9m5t cr$it4 4 7f7 ,s5se ( ,congress ,x is ! s5se ( ,congress t any sav+s 9 rev5ues result+ f ! enactm5t ( ?is section %all be appli$ to ! curr5tly project$ ,pell ,grant fund+ %ortfall beg9n+ 9 #bjae & to deficit r$uction4 7g7 ,effective date ,! am5dm5ts made by ?is section %all apply to exp5ses paid aft] ,decemb] #ca1 #bjac1 = education furni%$ 9 academic p]iods beg9n+ aft] su* date4