,,ib ,union ,calendar ,no4 #cib #aacth ,,congress #b;d ,session ,h4 ,r4 #ccic ,report ,no4 #aac-ebf ,,in ,,the ,,house ,,of ,,representatives ,october #cj1 #bjac ,mrs4 ,black 7for herself and ,mr4 ,danny ,k4 ,davis of ,illinois7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,july #ag1 #bjad ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed ,strike out all after the enacting clause and insert the part printed in italic ,for text of introduced bill1 see copy of bill as introduced on ,october #cj1 #bjac ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to consolidate certain tax benefits for educational expenses1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,student and ,family ,tax ,simplification ,act4 #b4 ,consolidation of certain tax benefits for educational expenses 7a7 ,american opportunity tax credit ,section #be;,a of the ,internal ,revenue ,code of #aihf is amended to read as follows3 #be;,a4 ,american opportunity tax credit 7a7 ,in general ,in the case of an individual1 there shall be allowed as a credit against the tax imposed by this chapter for the taxable year1 with respect to each eligible student1 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 so much of such expenses so paid as exceeds the dollar amount in effect under paragraph 7#a7 but does not exceed twice such dollar amount4 7b7 ,portion of credit refundable ,so much of the credit allowable under subsection 7a7 with respect to each eligible student 7determined without regard to this subsection and section #bf7;a7 and after application of all other provisions of this section7 as does not exceed #a1ejj shall be treated as a credit allowable under subpart ,c 7and not under this part74 ,the preceding sentence shall not apply to any taxpayer for any taxable year if such taxpayer is a child to whom section #a7;g7 applies for such taxable year4 7c7 ,limitation based on modified adjusted gross income 7#a7 ,in general ,the amount allowable as a credit under subsection 7a7 for any taxable year shall be reduced 7but not below zero7 by an amount which bears the same ratio to the amount so allowable 7determined without regard to this subsection and subsection 7b7 but after application of all other provisions of this section7 as-- 7,a7 the excess of-- 7i7 the taxpayer's modified adjusted gross income for such taxable year1 over 7ii7 #hj1jjj 7twice such amount in the case of a joint return71 bears to 7,b7 #aj1jjj 7twice such amount in the case of a joint return74 7#b7 ,modified adjusted gross income ,for purposes of this subsection1 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 ,no credit shall be allowed under this section with respect to any eligible student for any taxable year if-- 7#a7 such student was taken into account in determining the credit allowed under this section 7by the taxpayer or any other individual7 for any #d prior taxable years1 or 7#b7 such student has completed 7before the beginning of such taxable year7 the first #d years of postsecondary education at an eligible educational institution4 7e7 ,definitions ,for purposes of this section-- 7#a7 ,eligible student ,the term eligible student means1 with respect to any academic period1 a student 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 ,august #e1 #aiig1 and 7,b7 is carrying at least #a_/b the normal full-time work load for the course of study the student is pursuing4 7#b7 ,qualified tuition and related expenses 7,a7 ,in general ,the term qualified tuition and related expenses means tuition1 fees1 and course materials1 required for 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 #aife 7#bj ,u4,s4,c4 #ajhh71 as in effect on ,august #e1 #aiig1 and 7,b7 which is eligible to participate in a program under title ,,iv of such ,act4 7f7 ,special rules 7#a7 ,identification requirement ,no credit shall be allowed under subsection 7a7 to a taxpayer with respect to the qualified tuition and related expenses of an individual unless the taxpayer includes the name and taxpayer identification number of such individual1 and the employer identification number of any institution to which such expenses were paid1 on the return of tax for the taxable year4 7#b7 ,adjustment for certain scholarships1 etc 7,a7 ,in general ,the amount of qualified tuition and related expenses otherwise taken into account under subsection 7a7 with respect to an individual for an academic period shall be reduced 7before the application of subsection 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 ,for purposes of subparagraph 7,a71 the amount of any ,federal ,pell ,grant under section #dja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj;a7 shall be reduced 7but not below zero7 by the amount of 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 this paragraph7 of such individual at an eligible educational institution for the academic period for which the credit under this section is being determined4 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 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#d7 ,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#e7 ,denial of double benefit ,no credit shall be allowed under this section for any amount for which a 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 7g7 ,inflation adjustment 7#a7 ,in general ,in the case of a taxable year beginning after #bjah1 the #b1jjj amount in subsection 7a77#a71 the #a1ejj amount in subsection 7b71 and the #hj1jjj amount in subsection 7c77#a77;,a77ii7 shall each 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 #bjag for calendar year #aiib in subparagraph 7,b7 thereof4 7#b7 ,rounding ,if any amount as adjusted under paragraph 7#a7 is not a multiple of #ajj 7#a1jjj in the case of the amount in subsection 7c77#a77;,a77ii771 such amount shall be rounded to the next lowest multiple of #ajj 7#a1jjj in the case of the amount in subsection 7c77#a77;,a77ii774 7h7 ,regulations ,the ,secretary may prescribe such regulations or other guidance 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 ,requirement to report tuition paid rather than tuition billed ,section #fjej,s7b77#b77;,b77i7 is amended by striking or the aggregate amount billed4 7c7 ,repeal of deduction for qualified tuition and related expenses ,part ,,vii of subchapter ,b of chapter #a of such ,code is amended by striking section #bbb 7and by striking the item relating to such section in the table of sections for such part74 7d7 ,conforming amendments 7#a7 ,section #fb7;a7 of such ,code is amended by striking paragraph 7#ah74 7#b7 ,section #gb7t77#g77;,b7 of such ,code is amended by striking section #be;,a7g77#b7 and inserting section #be;,a7f77#b74 7#c7 ,sections #hf7;b77#b77;,a71 #ace7;c77#d77;,a71 #acg7;b77#c77;,a71 #aii7;d77#b77;,a71 #bai7;g77#c77;,a77ii71 and #bba7;b77#b77;,c77i7 of such ,code are each amended by striking #bbb14 7#d7 ,section #dfi7;i77#c77;,f77iii7 of such ,code is amended by striking #bba1 and #bbb and inserting and #bba4 7#e7 ,section #ebi7;c77#c77;,b77v77,i7 of such ,code is amended by striking section #be;,a7g77#b7 and inserting section #be;,a7f77#b74 7#f7 ,section #ebi7;e77#c77;,b77i7 of such ,code is amended by striking section #be;,a7b77#c7 and inserting section #be;,a7d74 7#g7 ,section #ecj7;d77#b77;,c7 of such ,code is amended-- 7,a7 by striking section #be;,a7g77#b7 in clause 7i77,i7 and inserting section #be;,a7f77#b71 and 7,b7 by striking ,hope and ,lifetime ,learning credits in the heading and inserting ,american opportunity tax credit4 7#h7 ,section #ecj7;d77#d77;,b77iii7 of such ,code is amended by striking section #be;,a7g77#b7 and inserting section #be;,a7d77#d77;,b74 7#i7 ,section #fjej,s7e7 of such ,code is amended by striking subsection 7g77#b7 and inserting subsection 7f77#b74 7#aj7 ,section #fbaa7;b77#d77;,a7 of such ,code is amended by striking subsection 7i77#f7 and inserting subsection 7b74 7#aa7 ,section #fbac7;g77#b77;,j7 of such ,code is amended by striking ,,tin required under section #be;,a7g77#a7 and inserting ,,tin1 and employer identification number1 required under section #be;,a7f77#a74 7#ab7 ,section #ajjd7;c7 of division ,b of the ,american ,recovery and ,reinvestment ,tax ,act of #bjji is amended-- 7,a7 in paragraph 7#a7-- 7i7 by striking section #be;,a7i77#f7 each place it appears and inserting section #be;,a7b71 7ii7 by striking 8with respect to taxable years beginning after #bjjh and before #bjah0 in subparagraph 7,a7 and inserting 8with respect to each taxable year01 and 7iii7 by striking 8for taxable years beginning after #bjjh and before #bjah0 in subparagraph 7,b7 and inserting 8for each taxable year01 7,b7 in paragraph 7#b71 by striking ,section #be;,a7i77#f7 and inserting ,section #be;,a7b71 and 7,c7 in paragraph 7#c77;,c71 by striking subsection 7i77#f7 and inserting subsection 7b74 7#ac7 ,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 by striking the item relating to section #be;,a and inserting the following new item3 ,sec4 #be;,a4 ,american opportunity tax credit4 4 7e7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjad4 #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-- 7#a7 by striking the period at the end and inserting 1 or1 7#b7 by striking received by an individual as a scholarship and inserting the following3 received by an individual-- 7,a7 as a scholarship 1 and 7#c7 by adding at the end the following new subparagraph3 7,b7 as a ,federal ,pell ,grant under section #dja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajgj;a74 4 7b7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after ,december #ca1 #bjad4 ,july #ag1 #bjad ,reported with an amendment1 committed to the ,committee of the ,whole ,house on the ,state of the ,union1 and ordered to be printed