I 

111TH CONGRESS 

2D SESSION H. R. 6455 

To amend the Internal Revenue Code of 1986 to permanently extend the 

American opportunity tax credit increases made to the Hope Scholarship 

Credit. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 29, 2010 

Mr. FATTAH 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 permanently 

extend the American opportunity tax credit increases 

made to the Hope Scholarship Credit. 

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 Extension Act of 2010’’. 

6 SEC. 2. INCREASES IN HOPE SCHOLARSHIP CREDIT MADE 

7 PERMANENT. 

8 (a) IN GENERAL.—Subparagraphs (A) and (B) of 

9 section 25A(b)(1) of the Internal Revenue Code of 1986 


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1 (relating to Hope Scholarship Credit) are amended to read 

2 as follows: 

3 ‘‘(A) 100 percent of so much of the quali4 fied tuition and related expenses paid by the 

5 taxpayer during the taxable year (for education 

6 furnished to the eligible student during any 

7 academic period beginning in such taxable year) 

8 as does not exceed $2,000, plus 

9 ‘‘(B) 25 percent of such expenses so paid 

10 as exceeds $2,000 but does not exceed the ap11 plicable limit.’’. 

12 (b) CREDIT ALLOWED FOR FIRST 4 YEARS OF POST13 SECONDARY EDUCATION.—Subparagraphs (A) and (C) of 

14 section 25A(b)(2) of such Code are amended by striking 

15 ‘‘2’’ each place it appears and inserting ‘‘4’’. 

16 (c) QUALIFIED TUITION AND RELATED EXPENSES

17 TO INCLUDE REQUIRED COURSE MATERIALS.—Subpara18 graph (A) of section 25A(f)(1) of such Code is amended 

19 by striking ‘‘and fees’’ and inserting ‘‘, fees, and course 

20 materials’’. 

21 (d) INCREASE IN AGI LIMITS.— 

22 (1) IN GENERAL.—Paragraph (2) of section 

23 25A(d) of such Code is amended to read as follows: 

24 ‘‘(2) AMOUNT OF REDUCTION.— 


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1 ‘‘(A) HOPE SCHOLARSHIP CREDIT.—In the 

2 case of the Hope Scholarship Credit, the 

3 amount determined under this paragraph is the 

4 amount which bears the same ratio to the credit 

5 which would be determined under subsection 

6 (a)(1) (without regard to this subsection) as— 

7 ‘‘(i) the excess of— 

8 ‘‘(I) the taxpayer’s modified ad9 justed gross income for such taxable 

10 year, over 

11 ‘‘(II) $80,000 ($160,000 in the 

12 case of a joint return), bears to 

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

14 a joint return). 

15 ‘‘(B) LIFETIME LEARNING CREDIT.—In 

16 the case of the Lifetime Learning Credit, the 

17 amount determined under this paragraph is the 

18 amount which bears the same ratio to the credit 

19 which would be determined under subsection 

20 (a)(2) (without regard to this subsection) as— 

21 ‘‘(i) the excess of— 

22 ‘‘(I) the taxpayer’s modified ad23 justed gross income for such taxable 

24 year, over 


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1 ‘‘(II) $40,000 ($80,000 in the 

2 case of a joint return), bears to 

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

4 a joint return).’’. 

5 (2) CONFORMING AMENDMENTS TO INFLATION

6 ADJUSTMENTS.— 

7 (A) AMOUNT OF CREDIT.—Subparagraph 

8 (A) of section 25A(h)(1) of such Code is 

9 amended— 

10 (i) by striking ‘‘2001’’ and inserting 

11 ‘‘2010’’, 

12 (ii) by striking ‘‘calendar year 2000’’ 

13 and inserting ‘‘calendar year 2009’’, and 

14 (iii) by striking ‘‘$1,000’’ and insert15 ing ‘‘$2,000’’. 

16 (B) INCOME LIMITS.— 

17 (i) Paragraph (2) of section 25A(h) of 

18 such Code is amended by redesignating 

19 subparagraphs (A) and (B) as subpara20 graphs (B) and (C), respectively, and by 

21 inserting before subparagraph (B) (as so 

22 redesignated) the following new subpara23 graph: 

24 ‘‘(A) HOPE SCHOLARSHIP CREDIT.—In the 

25 case of a taxable year beginning after 2010, the 


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1 $80,000 and $160,000 amounts in subsection 

2 (d)(2)(A) shall each be increased by an amount 

3 equal to— 

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

5 ‘‘(ii) the cost-of-living adjustment de6 termined under section 1(f)(3) for the cal7 endar year in which the taxable year be8 gins, determined by substituting ‘calendar 

9 year 2009’ for ‘calendar year 1992’ in sub10 paragraph (B) thereof.’’. 

11 (ii) Subparagraph (B) of section 

12 25A(h)(2) of such Code, as redesignated 

13 by clause (i), is amended— 

14 (I) by striking ‘‘IN GENERAL’’ in 

15 the heading and inserting ‘‘LIFETIME

16 LEARNING CREDIT’’, and 

17 (II) by striking ‘‘subsection 

18 (d)(2)’’ and inserting ‘‘subsection 

19 (d)(2)(B)’’. 

20 (C) ROUNDING.—Subparagraph (C) of sec21 tion 25A(h)(2) of such Code, as redesignated by 

22 subparagraph (B)(i), is amended by inserting 

23 ‘‘or (B)’’ after ‘‘subparagraph (A)’’. 

24 (e) CREDIT ALLOWED AGAINST MINIMUM TAX, 

25 ETC.— 


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1 (1) IN GENERAL.—Subsection (i) of section 

2 25A of such Code is amended by striking para3 graphs (1), (2), (3), (4), and (7) and by redesig4 nating paragraphs (5) and (6) as paragraphs (1) 

5 and (2), respectively. 

6 (2) Paragraph (2) of section 25A(i) of such 

7 Code, as redesignated by paragraph (1), is amend8 ed— 

9 (A) by striking ‘‘paragraph (4)’’ and in10 serting ‘‘subsection (d)’’, and 

11 (B) by striking ‘‘paragraph (5)’’ and in12 serting ‘‘paragraph (1)’’. 

13 (3) The heading for such subsection (i) is 

14 amended to read as follows: 

15 ‘‘(i) HOPE SCHOLARSHIP CREDIT ALLOWED

16 AGAINST MINIMUM TAX; PORTION OF CREDIT MADE RE17 FUNDABLE.—’’. 

18 (f) EFFECTIVE DATE.—The amendments made by 

19 this section shall apply to taxable years beginning after 

20 December 31, 2010. 

Æ 


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