II 

117TH CONGRESS 

1ST SESSION S. 2465 

To amend the Internal Revenue Code of 1986 to make the American 

Opportunity Tax Credit fully refundable, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JULY 22, 2021 

Mr. MENENDEZ (for himself, Mr. BROWN, Mr. WYDEN, and Mr. PADILLA) introduced the following bill; which was read twice and referred to the Committee on Finance 

A BILL 

To amend the Internal Revenue Code of 1986 to make 

the American Opportunity Tax Credit fully refundable, 

and for other purposes. 

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 ‘‘American Opportunity 

5 Tax Credit Enhancement Act of 2021’’. 

6 SEC. 2. ENHANCEMENT OF AMERICAN OPPORTUNITY TAX 

7 CREDIT. 

8 (a) IN GENERAL.—Section 25A of the Internal Rev9 enue Code of 1986 is amended— 


kjohnson on DSK79L0C42PROD with BILLS
2 

•S 2465 IS

1 (1) in subsection (b)— 

2 (A) by striking paragraph (1) and insert3 ing the following: 

4 ‘‘(1) PER STUDENT CREDIT.—In the case of 

5 any eligible student for whom an election is in effect 

6 under this section for any taxable year, the Amer7 ican Opportunity Tax Credit is an amount equal to 

8 100 percent of so much of the qualified tuition and 

9 related expenses paid by the taxpayer during the 

10 taxable year (for education furnished to the eligible 

11 student during any academic period beginning in 

12 such taxable year) as does not exceed $5,000.’’, and 

13 (B) in paragraph (2)(D)— 

14 (i) in the heading, by inserting ‘‘SERI15 OUS’’ before ‘‘FELONY’’, and 

16 (ii) by striking ‘‘Federal or State fel17 ony offense consisting of the possession or 

18 distribution of a controlled substance’’ and 

19 inserting ‘‘Federal drug-related offense for 

20 which the minimum term of imprisonment 

21 is not less than 15 years’’, 

22 (2) in subsection (d)— 

23 (A) in paragraph (1)— 


kjohnson on DSK79L0C42PROD with BILLS
3 

•S 2465 IS

1 (i) in the heading, by striking ‘‘IN

2 GENERAL’’ and inserting ‘‘LIFETIME

3 LEARNING CREDIT’’, 

4 (ii) by striking ‘‘The American Oppor5 tunity Tax Credit and the Lifetime Learn6 ing Credit shall each’’ and inserting ‘‘The 

7 Lifetime Learning Credit shall’’, and 

8 (iii) by striking ‘‘each such’’ and in9 serting ‘‘such’’, 

10 (B) by redesignating paragraph (2) as 

11 paragraph (3), and 

12 (C) by inserting after paragraph (1) the 

13 following: 

14 ‘‘(2) AMERICAN OPPORTUNITY TAX CREDIT.— 

15 In the case of the American Opportunity Tax Credit, 

16 paragraph (1) shall be applied— 

17 ‘‘(A) in subparagraph (A)(ii) of such para18 graph, by substituting ‘$125,000 ($250,000’ for 

19 ‘$80,000 ($160,000’, and 

20 ‘‘(B) in subparagraph (B) of such para21 graph, by substituting ‘$25,000 ($50,000’ for 

22 ‘$10,000 ($20,000’.’’, and 

23 (3) in subsection (i)— 

24 (A) in the heading, by striking ‘‘PORTION

25 OF’’, and 


kjohnson on DSK79L0C42PROD with BILLS
4 

•S 2465 IS

1 (B) by striking ‘‘Forty percent’’ and in2 serting ‘‘100 percent’’. 

3 (b) EFFECTIVE DATE.—The amendments made by 

4 this section shall apply to taxable years beginning after 

5 the date of enactment of this Act. 

Æ 


kjohnson on DSK79L0C42PROD with BILLS