I 

109TH CONGRESS 

2D SESSION H. R. 4837 

To amend the Internal Revenue Code of 1986 to expand the tax incentives 

for higher education. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 1, 2006 

Ms. ZOE LOFGREN of California 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 expand 

the tax incentives for higher education. 

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 ‘‘Affordable College 

5 Education Act of 2006’’. 

6 SEC. 2. DEDUCTION FOR ALL HIGHER EDUCATION EX7 PENSES FOR ALL TAXPAYERS. 

8 (a) DEDUCTION FOR ALL HIGHER EDUCATION EX9 PENSES.— 
2 

•HR 4837 IH 

1 (1) IN GENERAL.—Section 222 of the Internal 

2 Revenue Code of 1986 (relating to deduction for 

3 qualified tuition and related expenses) is amended 

4 by striking ‘‘qualified tuition and related expenses’’ 

5 each place it appears and inserting ‘‘qualified higher 

6 education expenses’’. 

7 (2) QUALIFIED HIGHER EDUCATION EX8 PENSES.—Paragraph (1) of section 222(d) of such 

9 Code is amended to read as follows: 

10 ‘‘(1) QUALIFIED HIGHER EDUCATION EX11 PENSES.—The term ‘qualified higher education ex12 penses’ has the meaning given to such term by sec13 tion 221(d)(2).’’. 

14 (b) REPEAL OF DOLLAR LIMITATION AND LIMITA15 TION BASED ON ADJUSTED GROSS INCOME.—Section 222 

16 of such Code is amended by striking subsection (b) and 

17 by redesignating subsections (c) and (d) as subsections (b) 

18 and (c), respectively. 

19 (c) REPEAL OF TERMINATION.—Section 222 of such 

20 Code is amended by striking subsection (e). 

21 (d) CONFORMING AMENDMENTS.— 

22 (1) The item relating to section 222 in the table 

23 of sections for part VII of subchapter B of chapter 

24 1 of such Code is amended by striking ‘‘QUALIFIED

25 TUITION AND RELATED EXPENSES’’ and insert-
3 

•HR 4837 IH 

1 ing ‘‘QUALIFIED HIGHER EDUCATION EX2 PENSES’’. 

3 (2) Subsection (c) of section 222 of such Code 

4 (as redesignated by subsection (b)) is amended by 

5 striking paragraph (4) and by redesignating para6 graphs (5) and (6) as paragraphs (4) and (5), re7 spectively. 

8 (e) EFFECTIVE DATE.—The amendments made by 

9 this section shall apply to taxable years beginning after 

10 December 31, 2005. 

11 SEC. 3. INCREASE IN PHASEOUT OF DEDUCTION FOR EDU12 CATION LOAN INTEREST. 

13 (a) IN GENERAL.—Subclause (II) of section 

14 221(b)(2)(B)(i) of the Internal Revenue Code of 1986 is 

15 amended by striking ‘‘$50,000 ($100,000 in the case of 

16 a joint return)’’ and inserting ‘‘$350,000 ($700,000 in the 

17 case of a joint return)’’. 

18 (b) INFLATION ADJUSTMENTS.—Paragraph (1) of 

19 section 221(f) of such Code (relating to inflation adjust20 ments) is amended by striking ‘‘2002, the $50,000 and 

21 $100,000’’ and inserting ‘‘2006, the $350,000 and 

22 $700,000’’. 

23 (c) EFFECTIVE DATE.—The amendments made by 

24 this section shall apply to taxable years beginning after 

25 December 31, 2005. 
4 

•HR 4837 IH 

1 SEC. 4. REPEAL OF EGTRRA SUNSETS WITH RESPECT TO 

2 INTEREST ON EDUCATION LOANS AND QUALI3 FIED TUITION AND RELATED EXPENSES. 

4 Section 901 of the Economic Growth and Tax Relief 

5 Reconciliation Act of 2001 shall not apply to sections 412 

6 (relating to elimination of 60-month limit and increase in 

7 income limitation on student loan interest deduction) and 

8 431 (relating to deduction for higher education expenses) 

9 of such Act. 

Æ