I 

114TH CONGRESS 

2D SESSION H. R. 5381 

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

certain expenses relating to applying to college. 

IN THE HOUSE OF REPRESENTATIVES 

JUNE 3, 2016 

Mr. ISRAEL 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 tax credit for certain expenses relating to applying 

to college. 

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 Preparation 

5 Tax Credit Act of 2016’’. 

6 SEC. 2. TAX CREDIT FOR COLLEGE PREPARATION EX7 PENSES. 

8 (a) IN GENERAL.—Subpart A of part IV of sub9 chapter A of chapter 1 of the Internal Revenue Code of 


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1 1986 is amended by inserting after section 25D the fol2 lowing new section: 

3 ‘‘SEC. 25E. CREDIT FOR COLLEGE PREPARATION EX4 PENSES. 

5 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in6 dividual, there shall be allowed as a credit against the tax 

7 imposed by this chapter for such taxable year an amount 

8 equal to so much of the qualified college preparation ex9 penses paid or incurred by the taxpayer during such tax10 able year as does not exceed $500. 

11 ‘‘(b) QUALIFIED COLLEGE PREPARATION EX12 PENSES.—For purposes of this section, the term ‘qualified 

13 college preparation expenses’ means amounts paid or in14 curred for— 

15 ‘‘(1) fees required for taking any Advanced 

16 Placement or International Baccalaureate exam, 

17 ‘‘(2) fees required for taking the SAT, the 

18 ACT, or any SAT Subject Test, 

19 ‘‘(3) expenses related to preparation (including 

20 tutorial services and preparation classes) for any 

21 exam described in paragraph (1) or (2), 

22 ‘‘(4) fees and expenses related to applications 

23 for admission to pursue a postsecondary course of 

24 study at an eligible educational institution (as de25 fined in section 25A(f)(2)), and 


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1 ‘‘(5) such other similar expenses and fees as the 

2 Secretary may by regulation prescribe. 

3 ‘‘(c) ELECTION.—No credit shall be allowed under 

4 subsection (a) with respect to any expenses paid or in5 curred during the taxable year with respect to any indi6 vidual for whom an election is not in effect under this sec7 tion for such taxable year. 

8 ‘‘(d) CREDIT ALLOWED ONLY FOR 3 TAXABLE

9 YEARS.—An election under this section with respect to 

10 any individual may not be made for any taxable year if 

11 such an election is in effect with respect to such individual 

12 for any 3 prior taxable years. 

13 ‘‘(e) TREATMENT OF EXPENSES PAID BY DEPEND14 ENT.—If a deduction under section 151 with respect to 

15 an individual is allowed to another taxpayer for a taxable 

16 year beginning in the calendar year in which such individ17 ual’s taxable year begins— 

18 ‘‘(1) no credit shall be allowed under subsection 

19 (a) to such individual for such individual’s taxable 

20 year, and 

21 ‘‘(2) qualified college preparation expenses paid 

22 by such individual during such individual’s taxable 

23 year shall be treated for purposes of this section as 

24 paid by such other taxpayer.’’. 


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

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

3 of the Internal Revenue Code of 1986 is amended by in4 serting after the item relating to section 25D the following 

5 new item: 

‘‘Sec. 25E. Credit for college preparation expenses.’’. 

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

7 this section shall apply to taxable years beginning after 

8 the date of the enactment of this Act. 

Æ 


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