I 

110TH CONGRESS 

1ST SESSION H. R. 2672 

To amend the Internal Revenue Code of 1986 to provide a deduction for 

the cost of attendance at an eligible educational institution. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 12, 2007 

Mr. SMITH of Nebraska (for himself, Mr. DOOLITTLE, and Mr. PAUL) introduced the following bill; which was referred to the Committee on Ways 

and Means 

A BILL 

To amend the Internal Revenue Code of 1986 to provide 

a deduction for the cost of attendance at an eligible 

educational institution. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Real Access to College 

5 Education Act of 2007’’. 

6 SEC. 2. DEDUCTION FOR QUALIFIED POST-SECONDARY 

7 EDUCATIONAL EXPENSES. 

8 (a) IN GENERAL.—Part VII of subchapter B of chap9 ter 1 of the Internal Revenue Code of 1986 (relating to 


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1 additional itemized deductions) is amended by redesig2 nating section 224 as section 225 and by inserting after 

3 section 223 the following new section: 

4 ‘‘SEC. 224. COSTS OF POST-SECONDARY EDUCATION. 

5 ‘‘(a) IN GENERAL.—In the case of an individual, 

6 there shall be allowed as a deduction an amount equal to 

7 the qualified post-secondary educational expenses paid or 

8 incurred by the taxpayer with respect to the taxpayer and, 

9 in the case of a joint return, the taxpayer’s spouse. 

10 ‘‘(b) LIMITATIONS.— 

11 ‘‘(1) DOLLAR AMOUNT LIMITATION.—The 

12 qualified post-secondary educational expenses taken 

13 into account under subsection (a) with respect to 

14 any individual for any taxable year shall not exceed 

15 $13,150. 

16 ‘‘(2) LIMITATION BASED ON MODIFIED AD17 JUSTED GROSS INCOME.— 

18 ‘‘(A) IN GENERAL.—The amount which 

19 would (but for this paragraph) be taken into ac20 count under subsection (a) for the taxable year 

21 shall be reduced (but not below zero) by the 

22 amount determined under subparagraph (B). 

23 ‘‘(B) AMOUNT OF REDUCTION.—The 

24 amount determined under this subparagraph is 

25 the amount which bears the same ratio to the 


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1 amount which would be so taken into account 

2 as— 

3 ‘‘(i) the excess of— 

4 ‘‘(I) the taxpayer’s modified ad5 justed gross income for such taxable 

6 year, over 

7 ‘‘(II) $55,000 (twice such 

8 amount in the case of a joint return), 

9 bears to 

10 ‘‘(ii) $10,000 ($20,000 in the case of 

11 a joint return). 

12 ‘‘(C) MODIFIED ADJUSTED GROSS IN13 COME.—For purposes of this paragraph, the 

14 term ‘modified adjusted gross income’ means 

15 the adjusted gross income of the taxpayer for 

16 the taxable year increased by any amount ex17 cluded from gross income under section 911, 

18 931, or 933. 

19 ‘‘(c) QUALIFIED POST-SECONDARY EDUCATIONAL

20 EXPENSES.—For purposes of this section, the term ‘quali21 fied post-secondary educational expenses’ means— 

22 ‘‘(1) qualified tuition and related expenses (as 

23 defined in section 25A(f)(1)), and 

24 ‘‘(2) reasonable costs incurred for room and 

25 board of the individual while such individual is atVerDate Aug 31 2005 23:12 Jun 13, 2007 Jkt 059200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H2672.IH H2672

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1 tending an eligible educational institution (as de2 fined in section 25A(f)(2)) which are not in excess 

3 of the limitations imposed under section 

4 529(e)(3)(B)(ii). 

5 ‘‘(d) STUDENT MUST BE AT LEAST HALF TIME.— 

6 No expense shall be taken into account under subsection 

7 (a) with respect to any individual unless such individual 

8 is an eligible student (as defined in section 25A(b)(3)) 

9 with respect to the academic period to which such expense 

10 relates. 

11 ‘‘(e) APPLICATION OF CERTAIN RULES.—Rules simi12 lar to the rules of subsections (e) and (g) of section 25A 

13 shall apply for purposes of this section. 

14 ‘‘(f) INFLATION ADJUSTMENT.— 

15 ‘‘(1) IN GENERAL.—In the case of a taxable 

16 year beginning after 2007, the dollar amounts con17 tained in paragraphs (1) and (2)(B)(i)(II) of sub18 section (b) shall each be increased by an amount 

19 equal to— 

20 ‘‘(A) such dollar amount, multiplied by 

21 ‘‘(B) the cost-of-living adjustment deter22 mined under section 1(f)(3) for the calendar 

23 year in which the taxable year begins, deter24 mined by substituting ‘calendar year 2006’ for 


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1 ‘calendar year 1992’ in subparagraph (B) 

2 thereof. 

3 ‘‘(2) ROUNDING.—If any amount as adjusted 

4 under paragraph (1) is not a multiple of $1,000 

5 such amount shall be rounded to the next lowest 

6 multiple of $1,000. In the case of the adjustment of 

7 the dollar amount contained in subsection (b)(1), the 

8 previous sentence shall be applied by substituting 

9 ‘$50’ for ‘$1,000’.’’. 

10 (b) DEDUCTION ALLOWED IN COMPUTING AD11 JUSTED GROSS INCOME.—Subsection (a) of section 62 of 

12 such Code is amended by inserting before the last sentence 

13 the following new paragraph: 

14 ‘‘(22) COSTS OF POST-SECONDARY EDU15 CATION.—The deduction allowed by section 224.’’. 

16 (c) CLERICAL AMENDMENT.—The table of sections 

17 for part VII of subchapter B of chapter 1 of such Code 

18 is amended by redesignating the item relating to section 

19 224 as an item relating to section 225 and inserting before 

20 such item the following new item: 

‘‘Sec. 224. Costs of post-secondary education.’’. 

21 (d) EFFECTIVE DATE.—The amendments made by 

22 this section shall apply to taxable years beginning after 

23 December 31, 2006. 

Æ 


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