I 

111TH CONGRESS 

1ST SESSION H. R. 386 

To amend the Internal Revenue Code of 1986 to simplify and improve 

the current education tax incentives. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 9, 2009 

Mr. DOGGETT 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 simplify 

and improve the current education tax incentives. 

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 ‘‘College Learning Ac5 cess Simplicity and Savings Act of 2009’’ or the ‘‘CLASS 

6 Act of 2009’’. 

7 SEC. 2. CREATION OF COLLEGE AFFORDABILITY CREDIT 

8 AND SIMPLIFICATION OF EDUCATION TAX 

9 BENEFITS. 

10 (a) COLLEGE AFFORDABILITY CREDIT.— 


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1 (1) Paragraph (1) of section 25A(a) of the In2 ternal Revenue Code of 1986 is amended by striking 

3 ‘‘the Hope Scholarship Credit’’ and inserting ‘‘the 

4 College Affordability Credit’’. 

5 (2) Subsection (b) of section 25A of such Code 

6 is amended to read as follows: 

7 ‘‘(b) COLLEGE AFFORDABILITY CREDIT.— 

8 ‘‘(1) ALLOWANCE OF CREDIT.—In the case of 

9 any eligible student for whom an election is in effect 

10 under this section for any taxable year, there shall 

11 be allowed as a credit against the tax imposed by 

12 this chapter for the taxable year an amount equal to 

13 the sum of— 

14 ‘‘(A) 100 percent of so much of the quali15 fied tuition and related expenses paid by the 

16 taxpayer during the taxable year (with respect 

17 to attendance of the eligible student at an eligi18 ble educational institution during any academic 

19 period beginning in such taxable year) as does 

20 not exceed $1,200, and 

21 ‘‘(B) 50 percent of so much of such ex22 penses as exceeds $1,200, but does not exceed 

23 $4,800. 

24 ‘‘(2) LIFETIME CREDIT LIMITATION.—The 

25 amount of the credit allowed under paragraph (1) 


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1 for any taxable year with respect to any eligible stu2 dent shall not exceed the excess of— 

3 ‘‘(A) $12,000, over 

4 ‘‘(B) the aggregate credit allowed under 

5 subsection (a) with respect to such eligible stu6 dent for all prior taxable years. 

7 ‘‘(3) CREDIT ALLOWED ONLY FOR FIRST 2

8 YEARS OF GRADUATE EDUCATION.—No credit shall 

9 be allowed under subsection (a)(1) for a taxable year 

10 with respect to the qualified tuition and related ex11 penses of an eligible student if the student has com12 pleted (before the beginning of such taxable year) 2 

13 years of graduate education at one or more eligible 

14 educational institutions. 

15 ‘‘(4) CREDIT ALLOWED FOR YEAR ONLY IF INDIVIDUAL IS AT LEAST 1 16 ⁄2 TIME STUDENT FOR POR17 TION OF YEAR.—The College Affordability Credit 

18 under subsection (a)(1) shall not be allowed for a 

19 taxable year with respect to the qualified tuition and 

20 related expenses of an individual unless such indi21 vidual is an eligible student for at least one aca22 demic period which begins during such year. 

23 ‘‘(5) ELIGIBLE STUDENT.—The term ‘eligible 

24 student’ means, with respect to any academic period, 

25 any individual who— 


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1 ‘‘(A) meets the requirements of section 

2 484(a)(1) of the Higher Education Act of 1965 

3 (20 U.S.C. 1091(a)(1)), as in effect on the date 

4 of the enactment of the Taxpayer Relief Act of 

5 1997, and 

‘‘(B) is carrying at least 1 6 ⁄2 the normal 

7 full-time work load for the course of study the 

8 student is pursuing.’’. 

9 (b) QUALIFIED TUITION AND RELATED EXPENSES

10 TO INCLUDE REQUIRED COURSE MATERIALS.—Subpara11 graph (A) of section 25A(f)(1) of such Code is amended 

12 by striking ‘‘tuition and fees’’ and inserting ‘‘tuition, fees, 

13 and course materials’’. 

14 (c) INCREASED INCOME LIMITATION.—Subsection 

15 (d) of section 25A of such Code is amended to read as 

16 follows: 

17 ‘‘(d) LIMITATION BASED ON MODIFIED ADJUSTED

18 GROSS INCOME.— 

19 ‘‘(1) IN GENERAL.—The amount which would 

20 (but for this paragraph) be taken into account under 

21 subsection (a) for the taxable year shall be reduced 

22 (but not below zero) by the amount determined 

23 under paragraph (2). 

24 ‘‘(2) AMOUNT OF REDUCTION.—The amount 

25 determined under this subparagraph is the amount 


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1 which bears the same ratio to the amount which 

2 would be so taken into account as— 

3 ‘‘(A) the excess of— 

4 ‘‘(i) the taxpayer’s modified adjusted 

5 gross income for such taxable year, over 

6 ‘‘(ii) the applicable amount under 

7 paragraph (4), bears to 

8 ‘‘(B) $25,000 ($50,000 in the case of a 

9 joint return). 

10 ‘‘(3) MODIFIED ADJUSTED GROSS INCOME.— 

11 The term ‘modified adjusted gross income’ means 

12 the adjusted gross income of the taxpayer for the 

13 taxable year increased by any amount excluded from 

14 gross income under section 911, 931, or 933. 

15 ‘‘(4) APPLICABLE AMOUNT.—The applicable 

16 amount under this subparagraph is— 

17 ‘‘(A) in the case of a joint return, 200 per18 cent of the dollar amount in effect under sub19 paragraph (B) for the taxable year, and 

20 ‘‘(B) in any other case, $50,000.’’. 

21 (d) MODIFIED INFLATION ADJUSTMENT.—Para22 graph (2) of section 25A(h) of such Code is amended to 

23 read as follows: 

24 ‘‘(2) INCOME LIMITS.— 


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1 ‘‘(A) IN GENERAL.—In the case of a tax2 able year beginning after 2009, the $50,000 

3 amount in subsection (d)(4)(B) shall each be 

4 increased by an amount equal to— 

5 ‘‘(i) such dollar amount, multiplied by 

6 ‘‘(ii) the cost-of-living adjustment de7 termined under section 1(f)(3) for the cal8 endar year in which the taxable year be9 gins, determined by substituting ‘calendar 

10 year 2008’ for ‘calendar year 1992’ in sub11 paragraph (B) thereof. 

12 ‘‘(B) ROUNDING.—If any amount as ad13 justed under subparagraph (A) is not a multiple 

14 of $1,000, such amount shall be rounded to the 

15 next lowest multiple of $1,000.’’. 

16 (e) PORTION OF CREDIT REFUNDABLE.—Section 

17 25A of such Code is amended by redesignating subsection 

18 (i) as subsection (j) and by inserting after subsection (h) 

19 the following new subsection: 

20 ‘‘(i) PORTION OF CREDIT REFUNDABLE.— 

21 ‘‘(1) IN GENERAL.—The aggregate credits al22 lowed to a taxpayer under subpart C shall be in23 creased by an amount equal to 50 percent of the 

24 portion of the amount of the credit which would 

25 have been allowed to the taxpayer under this section 


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1 by reason of subsection (b) (without regard to this 

2 subsection and the limitation under section 

3 26(a)(2)). The amount of the credit allowed under 

4 this subsection shall not be treated as a credit al5 lowed under this subpart and shall reduce the 

6 amount of credit otherwise allowable under sub7 section (a) (without regard to section 26(a)(2)). 

8 ‘‘(2) REDUCTION OF CREDIT.—In the case of a 

9 taxable year to which 26(a)(2) does not apply, the 

10 credit determined under paragraph (1) for the tax11 able year shall be reduced by the amount of tax im12 posed by section 55 (relating to alternative minimum 

13 tax) with respect to such taxpayer for such taxable 

14 year.’’. 

15 (f) REPEAL OF DEDUCTION FOR QUALIFIED TUI16 TION AND RELATED EXPENSES.— 

17 (1) IN GENERAL.—Part VII of subchapter B of 

18 chapter 1 of such Code (relating to additional 

19 itemized deductions for individuals) is amended by 

20 striking section 222. 

21 (2) CLERICAL AMENDMENT.—The table of sec22 tions for part VII of subchapter B of chapter 1 of 

23 such Code is amended by striking the item relating 

24 to section 222. 

25 (g) CONFORMING AMENDMENTS.— 


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1 (1) The heading for Section 25A of such Code 

2 is amended by striking ‘‘HOPE’’ and inserting 

3 ‘‘COLLEGE AFFORDABILITY’’. 

4 (2) Section 25A(c)(2)(A) of such Code is 

5 amended— 

6 (A) by striking ‘‘Hope Scholarship Credit’’ 

7 and inserting ‘‘College Affordability Credit’’, 

8 and 

9 (B) by striking ‘‘HOPE’’ in the heading 

10 thereof and inserting ‘‘COLLEGE AFFORD11 ABILITY’’. 

12 (3) Section 62(a) of such Code is amended by 

13 striking paragraph (18). 

14 (4) Subparagraph (A) of section 86(b)(2) of 

15 such Code is amended by striking ‘‘, 222’’. 

16 (5) Subparagraph (A) of section 135(c)(4) of 

17 such Code is amended by striking ‘‘, 222’’. 

18 (6) Subparagraph (A) of section 137(b)(3) of 

19 such Code is amended by striking ‘‘, 222’’. 

20 (7) Subparagraph (A) of section 199(d)(2) of 

21 such Code is amended by striking ‘‘, 222’’. 

22 (8) Clause (ii) of section 219(g)(3)(A) of such 

23 Code is amended by striking ‘‘, 222’’. 

24 (9) Clause (i) of section 221(b)(2)(C) of such 

25 Code is amended by striking ‘‘, 222’’. 


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1 (10) Clause (iii) of section 469(i)(3)(F) of such 

2 Code is amended by striking ‘‘221, and 222’’ and in3 serting ‘‘and 221’’. 

4 (11) Paragraph (3) of section 221(d) of such 

5 Code is amended by striking ‘‘25A(b)(3)’’ and in6 serting ‘‘25A(b)(5)’’. 

7 (12) Clause (i) of section 529(e)(3)(B) of such 

8 Code is amended by striking ‘‘section 25A(b)(3)’’ 

9 and inserting ‘‘section 221(d)(3)’’. 

10 (13) The heading for clause (v) of section 

11 529(c)(3)(B) of such Code is amended by striking 

12 ‘‘HOPE’’ and inserting ‘‘COLLEGE AFFORDABILITY’’. 

13 (14) The heading for Subparagraph (C) of sec14 tion 530(d)(2) of such Code is amended by striking 

15 ‘‘HOPE’’ and inserting ‘‘COLLEGE AFFORDABILITY’’. 

16 (15) Section 1400O of such Code is amended 

17 by adding at the end the following flush sentence: 

18 ‘‘For purposes of this section, any reference to section 25A 

19 shall be treated as a reference to such section as in effect 

20 on the day before the date of the enactment of this sen21 tence.’’. 

22 (16) Paragraph (2) of section 1324(b) of title 

23 31, United States Code, is amended by inserting ‘‘, 

24 25A,’’ after ‘‘section 35’’. 


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1 (h) CLERICAL AMENDMENT.—The table of sections 

2 for subpart A of part IV of subchapter A of chapter 1 

3 of such Code is amended by striking the item relating to 

4 section 25A and inserting the following new item: 

‘‘Sec. 25A. College Affordability and Lifetime Learning credits.’’. 

5 (i) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to expenses paid after December 

7 31, 2008, for education furnished in academic periods be8 ginning after such date. 

Æ 


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