,i  #aaeth ,,congress  #ast ,session    
,h4 ,r4 #agfd  ,,in ,,the ,,house ,,of  
,,representatives  ,march #bh1 #bjag,mr4
 ,messer 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
 exclude room and board costs and       
certain research expenses from gross    
income of certain students4  #a4 ,short 
title ,this ,act may be cited as the    
,fair ,treatment of ,scholarships and   
,pell ,grants ,act of #bjag4  #b4       
,exclusion of room and board costs and  
certain research expenses from gross    
income  7a7 ,in general ,section        
#aag7;b77#a7 of the ,internal ,revenue  
,code of #aihf is amended by striking   
used for qualified tuition and related  
expenses4 and inserting the following3  
used-- 7,a7 for qualified tuition and   
related expenses1 or  7,b7 for room and 
board costs4  4  7b7 ,clarification with
 respect to research expenses ,section  
#aag7;b77#b77;,b7 of such ,code is      

amended by inserting or for research at 
such an educational organization before 
the period at the end4  7c7 ,definitions
 ,section #aag7;b7 of such ,code is     
amended by adding at the end the        
following new paragraph3  7#c7 ,room and
 board costs ,for purposes of paragraph 
7#a71 the term room and board costs     
means room and board costs for which    
there is an allowance under section     
#dgb7c7 of the ,higher ,education ,act  
of #aife4  4  7d7 ,limitation  7#a7 ,in 
general ,section #aag7;c7 of such ,code 
is amended by adding at the end the     
following new paragraph3  7#c7 ,expenses
 for research  7,a7 ,in general ,the    
amount included in qualified tuition and
 related expenses under subsection      
7b77#b77;,b7 for a taxable year for     
research not required for a course of   
instruction shall not exceed #cjj4  7,b7
 ,inflation adjustment ,in the case of  
any taxable year beginning after #bjag1 
the #cjj amount in subparagraph 7,a7    
shall be increased by an amount equal   

to--  7i7 such dollar amount1 multiplied
 by  7ii7 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 #bjaf for calendar year   
#aiib in subparagraph 7,b7 of such      
section4  7,c7 ,rounding ,if any        
increase determined under subparagraph  
7,b7 is not a multiple of #e1 such      
increase shall be rounded to the nearest
 multiple of #e4  4  7#b7 ,conforming   
amendments ,section #aag7;c7 of such    
,code is amended-- 7,a7 in the heading1 
by striking ,limitation and inserting   
,limitations1 and  7,b7 in the heading  
of paragraph 7#a71 by striking ,in      
general and inserting ,payment for      
teaching1 research1 and other services4 
7e7 ,effective date ,the amendments made
 by this section apply with respect to  
amounts received in taxable years       
beginning after ,december #ca1 #bjaf4