,,ii  #aac? ,,congress  #a/ ,session    
,s4 #hce  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,april #be1 #bjac ,mr4 
,s*um] 7= himself1 ,mr4 ,m55dez1 ,ms4   
,/ab5[1 ,mr4 ,rockefell]1 ,mr4 ,br[n1   
,mr4 ,c>d91 ,mr4 ,:iteh\se1 & ,mr4      
,durb97 introduc$ ! foll[+ bill2 :i* 0  
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to ext5d & modify 
! ,am]ican ,opportunity ,tax ,cr$it1 & =
 o!r purposes4  #a4 ,%ort title ,?is    
,act may be cit$ z ! ,am]ican           
,opportunity ,tax ,cr$it ,p]man5ce &    
,consolidation ,act ( #bjac4  #b4       
,ext5sion & modification ( ,am]ican     
,opportunity ,tax ,cr$it  7a7 ,9 g5]al  
,section #be;,a ( ! ,int]nal ,rev5ue    
,code ( #aihf is am5d$ to read z foll[s3
  #be;,a4 ,am]ican ,opportunity ,tax    
,cr$it  7a7 ,all[ance ( cr$it ,9 ! case 
( an individual :o is an eligible /ud5t 
= any taxable ye>1 !re %all be all[$ z a
 cr$it aga9/ ! tax impos$ by ?is *apt] =
 su* taxable ye> ! am\nt det]m9$ "u     

subsection 7b7 ) respect to su*         
individual4  7b7 ,am\nt ( cr$it  7#a7   
,/ud5t enroll$ at lea/ #a_/b "t ,9 !    
case ( an eligible /ud5t :o is c>ry+ at 
lea/ #a_/b ! normal full-"t workload = !
 c\rse ( /udy ! /ud5t is pursu+1 ! am\nt
 det]m9$ "u ?is subsection ) respect to 
su* individual is ! 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$s #b1jjj b does n 
exce$ #f1jjj4  7#b7 ,o!r /ud5ts ,9 !    
case ( an eligible /ud5t n describ$ 9   
p>agraph 7#a71 ! am\nt det]m9$ "u ?is   
subsection ) respect to su* individual  
is #cj 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$ #aj1jjj4  7c7           

,limitation bas$ on modifi$ adju/$ gross
 income  7#a7 ,9 g5]al ,! am\nt :i* w\ld
 7b = ?is p>agraph7 be tak5 into acc\nt 
"u ?is section = ! taxable ye> %all be  
r$uc$ 7b n bel[ z]o7 by ! am\nt det]m9$ 
"u p>agraph 7#b74  7#b7 ,am\nt (        
r$uction ,! am\nt det]m9$ "u ?is        
p>agraph is ! am\nt :i* be>s ! same     
ratio to ! am\nt :i* w\ld be s tak5 into
 acc\nt z--  7,a7 ! excess (--  7i7 !   
taxpay]'s modifi$ adju/$ gross income = 
su* taxable ye>1 ov]  7ii7 #hj1jjj      
7#afj1jjj 9 ! case ( a jo9t return71    
be>s to  7,b7 #bj1jjj 7#dj1jjj 9 ! case 
( a jo9t return74  7#c7 ,modifi$ adju/$ 
gross income ,= purposes ( ?is p>agraph1
 ! t]m modifi$ adju/$ gross income means
 ! adju/$ gross income ( ! taxpay] = !  
taxable ye> increas$ by any am\nt       
exclud$ f gross income "u section #iaa1 
#ica1 or #icc4  7d7 ,o!r limitations &  
special rules ,= purposes ( ?is section3
  7#a7 ,lifetime doll> limitation ,9 !  
case ( qualifi$ tuition & relat$ exp5ses
 ) respect to any individual1 !         

aggregate am\nt ( ! cr$its claim$ "u ?is
 section = all taxable ye>s %all n exce$
 #ae1jjj1 det]m9$ )\t reg>d to :e!r--   
7,a7 su* cr$its are claim$ on ! return (
 tax fil$ by ! individual or by ano!r   
taxpay]1 or  7,b7 su* exp5ses are treat$
 z paid by ! individual or by ano!r     
taxpay]4  7#b7 ,report+ ,no cr$it %all  
be all[$ "u ?is section to a taxpay] )  
respect to ! qualifi$ tuition & relat$  
exp5ses ( an eligible /ud5t unless !    
taxpay] includes ! "n & taxpay]         
id5tification numb] ( su* eligible /ud5t
 on ! return ( tax = ! taxable ye>4     
7#c7 ,adju/m5t = c]ta9 s*ol>%ips1 etc   
7,a7 ,9 g5]al ,! am\nt ( qualifi$       
tuition & relat$ exp5ses o!rwise tak5   
into acc\nt "u ?is section ) respect to 
an individual = an academic p]iod %all  
be r$uc$ 7be=e ! application (          
subsections 7b7 & 7c77 by ! sum ( any   
am\nts paid = ! b5efit ( su* individual 
:i* are allocable to su* p]iod z--  7i7 
a qualifi$ s*ol>%ip :i* is excludable f 
gross income "u section #aag1  7ii7 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 &      
7iii7 a paym5t 7o!r ?an a gift1 beque/1 
devise1 or inh]itance )9 ! mean+ (      
section #ajb7;a77 = su* individual'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,b7 ,coord9ation )    
,pell ,grants n us$ = qualifi$ tuition &
 relat$ exp5ses ,any am\nt det]m9$ )    
respect to an individual "u subp>agraph 
7,a7 :i* is attributable to a ,f$]al    
,pell ,grant "u section #dja ( ! ,high] 
,education ,act ( #aife %all be r$uc$ 7b
 n bel[ z]o7 by ! am\nt ( ! exp5ses 7o!r
 ?an qualifi$ tuition & relat$ exp5ses7 
:i* are tak5 into acc\nt 9 det]m9+ ! co/
 ( att5dance 7z def9$ 9 section #dgb ( !
 ,high] ,education ,act ( #aife1 z 9    
effect on ! date ( ! enactm5t ( !       
,am]ican ,opportunity ,tax ,cr$it       

,p]man5ce & ,consolidation ,act ( #bjac7
 ( su* individual at an eligible        
educational in/itution = ! academic     
p]iod = :i* ! cr$it "u ?is section is   
be+ det]m9$4  7#d7 ,treatm5t ( exp5ses  
paid by dep5d5t ,if a d$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 ?is section to
 su* individual = su* individual's      
taxable ye>1 &  7,b7 qualifi$ tuition & 
relat$ exp5ses 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#e7 ,treatm5t
 ( c]ta9 prepaym5ts ,if qualifi$ tuition
 & relat$ exp5ses 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#f7      
,d5ial ( d\ble b5efit ,no cr$it %all be 

all[$ "u ?is section = any exp5se = :i* 
a d$uction is all[$ "u any o!r provision
 ( ?is *apt]4  7#g7 ,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#h7 ,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  7e7        
,election n ,to h ,section apply ,a     
taxpay] may elect n to h ?is section    
apply ) respect to ! qualifi$ tuition & 
relat$ exp5ses ( an individual = any    
taxable ye>4  7f7 ,def9itions ,=        
purposes ( ?is section3  7#a7 ,eligible 
/ud5t ,! t]m eligible /ud5t means1 )    
respect to any taxable ye>1 an          
individual :o--  7,a7 is enroll$ = at   

lea/ "o academic p]iod :i* beg9s dur+   
su* taxable ye> at an eligible          
educational in/itution1 &  7,b7 meets ! 
requirem5ts ( section #dhd7;a77#a7 ( !  
,high] ,education ,act ( #aife1 z 9     
effect on ! date ( ! enactm5t ( !       
,am]ican ,opportunity ,tax ,cr$it       
,p]man5ce & ,consolidation ,act ( #bjac4
  7#b7 ,qualifi$ tuition & relat$       
exp5ses  7,a7 ,9 g5]al ,! t]m qualifi$  
tuition & relat$ exp5ses means tuition1 
fees1 & c\rse mat]ials requir$ = !      
enrollm5t or att5dance (--  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  at an eligible           
educational in/itution = c\rses (       
in/ruction ( su* individual at su*      
in/itution4  7,b7 ,exception = education
 involv+ sports1 etc ,su* t]m does n    
include exp5ses ) respect to any c\rse  
or o!r education involv+ sports1 games1 
or hobbies1 unless su* c\rse or o!r     
education is "p ( ! individual's degree 

program4  7,c7 ,exception = nonacademic 
fees ,su* t]m does n include /ud5t      
activity fees1 a?letic fees1 insurance  
exp5ses1 or o!r exp5ses unrelat$ to an  
individual's academic c\rse (           
in/ruction4  7,d7 ,comput] te*nology &  
equipm5t ,su* t]m includes exp5ses = !  
pur*ase ( comput] te*nology or equipm5t 
7z def9$ 9 section                      
#agj7;e77#f77;,f77i771 or ,int]net      
access & relat$ s]vices1 only to ! ext5t
 ! pur*ase ( su* te*nology1 equipm5t1 or
 s]vices is specifically requir$ by !   
individual's academic c\rse ( in/ruction
 or degree program4  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 ( ! ,am]ican ,opportunity ,tax 
,cr$it ,p]man5ce & ,consolidation ,act (
 #bjac1 &  7,b7 :i* is eligible to      
p>ticipate 9 a program "u title ,,iv (  
su* ,act4  7g7 ,portion ( cr$it         

refundable ,=ty p]c5t ( ! cr$it all[$ "u
 ?is section 7det]m9$ aft] application (
 subsections 7c77#a7 & 7d7 & )\t reg>d  
to ?is subsection & section #bf7;a77#b7 
or subsection 7c77#b71 z ! case may be7 
%all be treat$ z a cr$it all[able "u    
subp>t ,c 7& n all[$ "u ?is section74 ,!
 prec$+ s5t5ce %all n apply to any      
taxpay] = any taxable ye> if su* taxpay]
 is a *ild to :om subsection 7g7 (      
section #a applies = su* taxable ye>4   
7h7 ,regulations ,! ,secret>y may       
prescribe su* regulations z may be      
necess>y or appropriate to c>ry out ?is 
section1 includ+ regulations provid+ = a
 recapture ( ! cr$it all[$ "u ?is       
section 9 cases :]e !re is a refund 9 a 
subsequ5t taxable ye> ( any am\nt :i* 0 
tak5 into acc\nt 9 det]m9+ ! am\nt ( su*
 cr$it4  4  7b7 ,cl]ical am5dm5t ,! item
 relat+ to section #be;,a 9 ! table (   
sections = subp>t ,a ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ to read z
 foll[s3  ,sec4 #be;,a4 ,am]ican        

,opportunity ,tax ,cr$it4  4  7c7       
,con=m+ am5dm5ts  7#a7 ,subp>agraph 7,b7
 ( section #gb7t77#g7 ( su* ,code is    
am5d$ by /rik+ #be;,a7g77#b7 & ins]t+   
#be;,a7d77#c74  7#b7 ,p>agraph 7#b7 (   
section #bba7;d7 ( su* ,code is am5d$-- 
7,a7 by /rik+ #be;,a7g77#b7 9           
subp>agraph 7,b7 & ins]t+ #be;,a7d77#c71
 &  7,b7 by /rik+ #be;,a7f77#b7 & ins]t+
 #be;,a7f77#c74  7#c7 ,p>agraph 7#c7 (  
section #bba7;d7 ( su* ,code is am5d$ by
 /rik+ #be;,a7b77#c7 & ins]t+           
#be;,a7f77#a7 7b only ) respect to a    
/ud5t :o is c>ry+ at lea/ #a_/b ! normal
 full-"t workload = ! c\rse ( /udy !    
/ud5t is pursu+74  7#d7 ,p>agraph 7#a7 (
 section #bbb7;d7 ( su* ,code is am5d$--
  7,a7 by /rik+ #be;,a7f7 & ins]t+      
#be;,a7f77#b71 &  7,b7 by /rik+         
#be;,a7g77#b7 & ins]t+ #be;,a7d77#c74   
7#e7 ,clause 7v7 ( section              
#ebi7;c77#c77;,b7 ( su* ,code is am5d$--
  7,a7 by /rik+ #be;,a7g77#b7 9         
subclause 7,i7 & ins]t+ #be;,a7d77#c71 &
  7,b7 by /rik+ ,hope & ,lifetime ,le>n+

 cr$its 9 ! head+ & ins]t+ ,am]ican     
,opportunity ,cr$it4  7#f7 ,clause 7i7 (
 section #ebi7;e77#c77;,b7 ( su* ,code  
is am5d$ by /rik+ #be;,a7b77#c7 & ins]t+
 #be;,a7f77#a7 7b only ) respect to a   
/ud5t :o is c>ry+ at lea/ #a_/b ! normal
 full-"t workload = ! c\rse ( /udy !    
/ud5t is pursu+74  7#g7 ,subp>agraph    
7,c7 ( section #ecj7;d77#b7 ( su* ,code 
is am5d$--  7,a7 by /rik+ #be;,a7g77#b7 
9 clause 7i77,i7 & ins]t+ #be;,a7d77#c71
 &  7,b7 by /rik+ ,hope & ,lifetime     
,le>n+ cr$its 9 ! head+ & ins]t+        
,am]ican ,opportunity ,cr$it4  7#h7     
,clause 7iii7 ( section                 
#ecj7;d77#d77;,b7 ( su* ,code is am5d$  
by /rik+ #be;,a7g77#b7 & ins]t+         
#be;,a7d77#c74  7#i7 ,section #adjj,o ( 
su* ,code is am5d$--  7,a7 by /rik+     
#be;,a7f77#b7 & ins]t+ #be;,a7f77#c71   
7,b7 by ins]t+ 7z 9 effect on ! date ( !
 enactm5t ( ?is section7 aft]           
#be;,a7b77#a7 9 p>agraph 7#b71 &  7,c7  
by ins]t+ 7z 9 effect on ! date ( !     
enactm5t ( ?is section7 aft]            

#be;,a7c77#a7 9 p>agraph 7#c74  7#aj7   
,subsection 7e7 ( section #fjej,s ( su* 
,code is am5d$ by /rik+ subsection      
7g77#b7 & ins]t+ subsection 7d77#c74    
7#aa7 ,subp>agraph 7,a7 ( section       
#fbaa7;b77#d7 ( su* ,code is am5d$ by   
/rik+ subsection 7i77#f7 & ins]t+       
subsection 7g74  7#ab7 ,subp>agraph 7,j7
 ( section #fbac7;g77#b7 ( su* ,code is 
am5d$ by /rik+ #be;,a7g77#a7 & ins]t+   
#be;,a7d77#b74  7d7 ,effective date ,!  
am5dm5ts made by ?is section %all apply 
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjab4  #c4 ,expansion ( ,pell     
,grant exclusion f gross income  7a7 ,9 
g5]al ,p>agraph 7#a7 ( section #aag7;b7 
( ! ,int]nal ,rev5ue ,code ( #aihf is   
am5d$ by /rik+ receiv$ by an individual 
& all t foll[s & ins]t+ 8receiv$ by an  
individual--  7#a7 z a s*ol>%ip or      
fell[%ip grant to ! ext5t ! individual  
e/abli%es t1 9 accordance ) ! conditions
 ( ! grant1 su* am\nt 0 us$ = qualifi$  
tuition & relat$ exp5ses1 or  7#b7 z a  
,f$]al ,pell ,grant "u section #dja ( ! 

,high] ,education ,act ( #aife 7z 9     
effect on ! date ( ! enactm5t ( !       
,am]ican ,opportunity ,tax ,cr$it       
,p]man5ce & ,consolidation ,act (       
#bjac74  4  7b7 ,effective date ,!      
am5dm5t made by ?is section %all apply  
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjab4