I 

111TH CONGRESS 

2D SESSION H. R. 5078 

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

education. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 20, 2010 

Mr. HIGGINS (for himself, Mrs. MCCARTHY of New York, Mr. PLATTS, and 

Mr. ROSKAM) 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 

incentives for 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 ‘‘Higher Education Af5 fordability and Equity Act of 2010’’. 

6 SEC. 2. EXPANSION OF DEDUCTION FOR INTEREST ON EDU7 CATION LOANS. 

8 (a) REPEAL OF DOLLAR LIMITATION; INCREASE IN

9 PHASEOUT BEGINNING POINT.—Subsection (b) of section 


srobinson on DSKHWCL6B1PROD with BILLS
2 

•HR 5078 IH

1 221 of the Internal Revenue Code of 1986 (relating to 

2 maximum deduction) is amended to read as follows: 

3 ‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED

4 GROSS INCOME.— 

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

6 (but for this subsection) be allowable as a deduction 

7 under this section shall be reduced (but not below 

8 zero) by the amount determined under paragraph 

9 (2). 

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

11 determined under this paragraph is the amount 

12 which bears the same ratio to the amount which 

13 would be so taken into account as— 

14 ‘‘(A) the excess of— 

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

16 gross income for such taxable year, over 

17 ‘‘(ii) $100,000 ($200,000 in the case 

18 of a joint return), bears to 

19 ‘‘(B) $15,000 ($30,000 in the case of a 

20 joint return). 

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

22 The term ‘modified adjusted gross income’ means 

23 adjusted gross income determined— 

24 ‘‘(A) without regard to this section and 

25 sections 199, 222, 911, 931, and 933, and 


srobinson on DSKHWCL6B1PROD with BILLS
3 

•HR 5078 IH

1 ‘‘(B) after application of sections 86, 135, 

2 137, 219, and 469.’’. 

3 (b) CONFORMING AMENDMENT.—Section 221(f)(1) 

4 of such Code is amended to read as follows: 

5 ‘‘(1) IN GENERAL.—In the case of a taxable 

6 year beginning after 2010, the $100,000 and 

7 $200,000 amounts in subsection (b) shall each be in8 creased by an amount equal to— 

9 ‘‘(A) such dollar amount, multiplied by 

10 ‘‘(B) the cost-of-living adjustment deter11 mined under section 1(f)(3) for the calendar 

12 year in which the taxable year begins, deter13 mined by substituting ‘calendar year 2009’ for 

14 ‘calendar year 1992’ in subparagraph (B) 

15 thereof.’’. 

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

17 this section shall apply to taxable years beginning after 

18 December 31, 2009. 

19 SEC. 3. EDUCATION SAVINGS ACCOUNTS. 

20 (a) INCREASE IN ALLOWABLE CONTRIBUTIONS.— 

21 (1) IN GENERAL.—Clause (iii) of section 

22 530(b)(1)(A) of the Internal Revenue Code of 1986 

23 is amended by striking ‘‘$2,000’’ and inserting 

24 ‘‘$5,000’’. 


srobinson on DSKHWCL6B1PROD with BILLS
4 

•HR 5078 IH

1 (2) CONFORMING AMENDMENT.—Section 

2 4973(e)(1)(A) of such Code is amended by striking 

3 ‘‘$2,000’’ and inserting ‘‘$5,000’’. 

4 (b) REPORTS.—Subsection (h) of section 530 of such 

5 Code is amended by striking the period at the end of the 

6 last sentence and inserting ‘‘, except that reports shall be 

7 so filed and furnished for any calendar year not later than 

8 June 30 of the following year.’’. 

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

10 this section shall apply to taxable years beginning after 

11 December 31, 2009. 

12 SEC. 4. ALLOWANCE OF ROOM, BOARD, AND SPECIAL 

13 NEEDS SERVICES IN THE CASE OF SCHOLAR14 SHIPS AND TUITION REDUCTION PROGRAMS 

15 WITH RESPECT TO HIGHER EDUCATION. 

16 (a) IN GENERAL.—Paragraph (1) of section 117(b) 

17 of the Internal Revenue Code of 1986 (defining qualified 

18 scholarship) is amended by inserting before the period at 

19 the end the following: ‘‘or, in the case of enrollment or 

20 attendance at an eligible educational institution, for quali21 fied higher education expenses.’’. 

22 (b) DEFINITIONS.—Subsection (b) of section 117 of 

23 such Code is amended by adding at the end the following 

24 new paragraph: 


srobinson on DSKHWCL6B1PROD with BILLS
5 

•HR 5078 IH

1 ‘‘(3) QUALIFIED HIGHER EDUCATION EX2 PENSES; ELIGIBLE EDUCATIONAL INSTITUTION.— 

3 The terms ‘qualified higher education expenses’ and 

4 ‘eligible educational institution’ have the meanings 

5 given such terms in section 529(e).’’. 

6 (c) TUITION REDUCTION PROGRAMS.—Paragraph 

7 (5) of section 117(d) of such Code (relating to special 

8 rules for teaching and research assistants) is amended by 

9 striking ‘‘shall be applied as if it did not contain the 

10 phrase ‘(below the graduate level)’.’’ and inserting ‘‘shall 

11 be applied— 

12 ‘‘(A) as if it did not contain the phrase 

13 ‘(below the graduate level)’, and 

14 ‘‘(B) by substituting ‘qualified higher edu15 cation expenses’ for ‘tuition’ the second place it 

16 appears.’’. 

17 (d) EFFECTIVE DATE.—The amendments made by 

18 this section shall apply to expenses paid after December 

19 31, 2009 (in taxable years ending after such date), for 

20 education furnished in academic periods beginning after 

21 such date. 

22 SEC. 5. REPEAL OF EGTRRA SUNSET APPLICABILITY TO 

23 CERTAIN EDUCATION PROVISIONS. 

24 Title IX of the Economic Growth and Tax Relief Rec25 onciliation Act of 2001 (relating to sunset of provisions 


srobinson on DSKHWCL6B1PROD with BILLS
6 

•HR 5078 IH

1 of such Act) shall not apply to sections 401 and 412 of 

2 such Act. 

Æ 


srobinson on DSKHWCL6B1PROD with BILLS