To amend the Internal Revenue Code of 1986 to provide a deduction for the cost of attendance at an eligible educational institution.

Summary: Real Access to College Education Act of 2007 - Amends the Internal Revenue Code to allow individual taxpayers (and their spouses if a joint return is filed) a tax deduction from gross income for post-secondary educational expenses, including tuition and related expenses and room and board. Limits the annual amount of such deduction to $13,150, subject to an adjustment based on the taxpayer's modified adjusted gross income.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Real Access to College Education Act 
of 2007''.

SEC. 2. DEDUCTION FOR QUALIFIED POST-SECONDARY EDUCATIONAL EXPENSES.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions) is amended by redesignating section 224 as section 225 and 
by inserting after section 223 the following new section:

``SEC. 224. COSTS OF POST-SECONDARY EDUCATION.

    ``(a) In General.--In the case of an individual, there shall be 
allowed as a deduction an amount equal to the qualified post-secondary 
educational expenses paid or incurred by the taxpayer with respect to 
the taxpayer and, in the case of a joint return, the taxpayer's spouse.
    ``(b) Limitations.--
            ``(1) Dollar amount limitation.--The qualified post-
        secondary educational expenses taken into account under 
        subsection (a) with respect to any individual for any taxable 
        year shall not exceed $13,150.
            ``(2) Limitation based on modified adjusted gross income.--
                    ``(A) In general.--The amount which would (but for 
                this paragraph) be taken into account under subsection 
                (a) for the taxable year shall be reduced (but not 
                below zero) by the amount determined under subparagraph 
                (B).
                    ``(B) Amount of reduction.--The amount determined 
                under this subparagraph is the amount which bears the 
                same ratio to the amount which would be so taken into 
                account as--
                            ``(i) the excess of--
                                    ``(I) the taxpayer's modified 
                                adjusted gross income for such taxable 
                                year, over
                                    ``(II) $55,000 (twice such amount 
                                in the case of a joint return), bears 
                                to
                            ``(ii) $10,000 ($20,000 in the case of a 
                        joint return).
                    ``(C) Modified adjusted gross income.--For purposes 
                of this paragraph, 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 911, 931, or 933.
    ``(c) Qualified Post-Secondary Educational Expenses.--For purposes 
of this section, the term `qualified post-secondary educational 
expenses' means--
            ``(1) qualified tuition and related expenses (as defined in 
        section 25A(f)(1)), and
            ``(2) reasonable costs incurred for room and board of the 
        individual while such individual is attending an eligible 
        educational institution (as defined in section 25A(f)(2)) which 
        are not in excess of the limitations imposed under section 
        529(e)(3)(B)(ii).
    ``(d) Student Must Be at Least Half Time.--No expense shall be 
taken into account under subsection (a) with respect to any individual 
unless such individual is an eligible student (as defined in section 
25A(b)(3)) with respect to the academic period to which such expense 
relates.
    ``(e) Application of Certain Rules.--Rules similar to the rules of 
subsections (e) and (g) of section 25A shall apply for purposes of this 
section.
    ``(f) Inflation Adjustment.--
            ``(1) In general.--In the case of a taxable year beginning 
        after 2007, the dollar amounts contained in paragraphs (1) and 
        (2)(B)(i)(II) of subsection (b) shall each be increased by an 
        amount equal to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2006' for `calendar year 1992' in 
                subparagraph (B) thereof.
            ``(2) Rounding.--If any amount as adjusted under paragraph 
        (1) is not a multiple of $1,000 such amount shall be rounded to 
        the next lowest multiple of $1,000. In the case of the 
        adjustment of the dollar amount contained in subsection (b)(1), 
        the previous sentence shall be applied by substituting `$50' 
        for `$1,000'.''.
    (b) Deduction Allowed in Computing Adjusted Gross Income.--
Subsection (a) of section 62 of such Code is amended by inserting 
before the last sentence the following new paragraph:
            ``(22) Costs of post-secondary education.--The deduction 
        allowed by section 224.''.
    (c) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by redesignating the 
item relating to section 224 as an item relating to section 225 and 
inserting before such item the following new item:

``Sec. 224. Costs of post-secondary education.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.