I 

111TH CONGRESS 

1ST SESSION H. R. 518 

To amend the Internal Revenue Code of 1986 to consolidate the current 

education tax incentives as one credit against income tax for qualified 

tuition and related expenses. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 14, 2009 

Mr. ISRAEL (for himself, Mr. RODRIGUEZ, Mr. RYAN of Ohio, Mr. WEINER, 

Ms. BEAN, and Ms. SHEA-PORTER) 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 consolidate 

the current education tax incentives as one credit against 

income tax for qualified tuition and related expenses. 

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 ‘‘Middle Class College 

5 Tuition Tax Credit Expansion Act of 2009’’. 


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1 SEC. 2. QUALIFIED TUITION AND RELATED EXPENSES 

2 CREDIT. 

3 (a) IN GENERAL.—Section 25A of the Internal Rev4 enue Code of 1986 (relating to Hope and Lifetime Learn5 ing Credits) is amended to read as follows: 

6 ‘‘SEC. 25A. QUALIFIED TUITION AND RELATED EXPENSES 

7 CREDIT. 

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

9 eligible individual for whom an election is in effect under 

10 this section, there shall be allowed as a credit against the 

11 tax imposed by this chapter for the taxable year an 

12 amount equal to 50 percent of so much of the qualified 

13 tuition and related expenses paid by the taxpayer during 

14 the taxable year (for education furnished to the eligible 

15 individual during any academic period beginning in such 

16 taxable year) as does not exceed $10,000. 

17 ‘‘(b) LIMITATIONS.— 

18 ‘‘(1) MODIFIED ADJUSTED GROSS INCOME LIMI19 TATION.— 

20 ‘‘(A) IN GENERAL.—The amount which 

21 would (but for this paragraph) be taken into ac22 count under subsection (a) for the taxable year 

23 shall be reduced (but not below zero) by the 

24 amount determined under paragraph (2). 

25 ‘‘(B) AMOUNT OF REDUCTION.—The 

26 amount determined under this paragraph is the 


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1 amount which bears the same ratio to the 

2 amount which would be so taken into account 

3 as— 

4 ‘‘(i) the excess of— 

5 ‘‘(I) the taxpayer’s modified ad6 justed gross income for such taxable 

7 year, over 

8 ‘‘(II) the applicable amount 

9 under paragraph (4), bears to 

10 ‘‘(ii) $5,000 ($10,000 in the case of a 

11 joint return). 

12 ‘‘(C) MODIFIED ADJUSTED GROSS IN13 COME.—The term ‘modified adjusted gross in14 come’ means the adjusted gross income of the 

15 taxpayer for the taxable year increased by any 

16 amount excluded from gross income under sec17 tion 911, 931, or 933. 

18 ‘‘(D) APPLICABLE AMOUNT.—The applica19 ble amount under this subparagraph is— 

20 ‘‘(i) in the case of a joint return, 200 

21 percent of the dollar amount in effect 

22 under subparagraph (B) for the taxable 

23 year, and 

24 ‘‘(ii) in any other case, $100,000. 


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1 ‘‘(2) CREDIT ALLOWED FOR ONLY 4 TAXABLE

2 YEARS.—An election to have this section apply with 

3 respect to any eligible individual may not be made 

4 for any taxable year if such an election (by the tax5 payer or any other individual) is in effect with re6 spect to such individual for any 4 prior taxable 

7 years. 

8 ‘‘(c) DEFINITIONS.—For purposes of this section— 

9 ‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 

10 individual’ means any individual described in para11 graph (2). 

12 ‘‘(2) QUALIFIED TUITION AND RELATED EX13 PENSES.— 

14 ‘‘(A) IN GENERAL.—The term ‘qualified 

15 tuition and related expenses’ means tuition and 

16 fees required for the enrollment or attendance 

17 of — 

18 ‘‘(i) taxpayer, 

19 ‘‘(ii) the taxpayer’s spouse, or 

20 ‘‘(iii) any dependent of the taxpayer 

21 with respect to whom the taxpayer is al22 lowed a deduction under section 151, at an 

23 eligible educational institution for courses 

24 of instruction of such individual at such in25 stitution. 


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1 ‘‘(B) BOOKS.—Such term shall include 

2 books required for such individual’s academic 

3 courses of instruction at the eligible educational 

4 institution. 

5 ‘‘(C) EXCEPTION FOR EDUCATION INVOLV6 ING SPORTS, ETC.—Such term does not include 

7 expenses with respect to any course or other 

8 education involving sports, games, or hobbies, 

9 unless such course or other education is part of 

10 the individual’s degree program. 

11 ‘‘(D) EXCEPTION FOR NONACADEMIC

12 FEES.—Such term does not include student ac13 tivity fees, athletic fees, insurance expenses, or 

14 other expenses unrelated to an individual’s aca15 demic course of instruction. 

16 ‘‘(3) ELIGIBLE EDUCATIONAL INSTITUTION.— 

17 Ther term ‘eligible educational institution’ means an 

18 institution— 

19 ‘‘(A) which is described in section 481 of 

20 the Higher Education Act of 1965, as in effect 

21 on the date of the enactment of the Taxpayer 

22 Relief Act of 1997, and 

23 ‘‘(B) which is eligible to participate in a 

24 program under title IV of the Higher Education 

25 Act of 1965. 


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1 ‘‘(d) SPECIAL RULES.— 

2 ‘‘(1) IDENTIFICATION REQUIREMENT.—No 

3 credit shall be allowed under subsection (a) to a tax4 payer with respect to an eligible student unless the 

5 taxpayer includes the name and taxpayer identifica6 tion number of such student on the return of tax for 

7 the taxable year. 

8 ‘‘(2) ADJUSTMENT FOR CERTAIN SCHOLAR9 SHIPS.—The amount of qualified tuition and related 

10 expenses otherwise taken into account under sub11 section (a) with respect to an individual for an aca12 demic period shall be reduced (before the application 

13 of subsections (a) and (b)) by the sum of any 

14 amounts paid for the benefit of such individual 

15 which are allocable to such period as— 

16 ‘‘(A) a qualified scholarship which is ex17 cludable from gross income under section 117, 

18 ‘‘(B) an educational assistance allowance 

19 under chapter 30, 31, 32, 34, or 35 of title 38, 

20 United States Code, or under chapter 1606 of 

21 title 10, United States Code, and 

22 ‘‘(C) a payment (other than a gift, be23 quest, devise, or inheritance within the meaning 

24 of section 102(a)) for such student’s edu25 cational expenses, or attributable to such indiVerDate Nov 24 2008 00:06 Jan 21, 2009 Jkt 079200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H518.IH H518

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1 vidual’s enrollment at an eligible educational in2 stitution, which is excludable from gross income 

3 under any law of the United States. 

4 ‘‘(3) TREATMENT OF EXPENSES PAID BY DE5 PENDENT.—If a deduction under section 151 with 

6 respect to an individual is allowed to another tax7 payer for a taxable year beginning in the calendar 

8 year in which such individual’s taxable year begins— 

9 ‘‘(A) no credit shall be allowed under sub10 section (a) to such individual for such individ11 ual’s taxable year, and 

12 ‘‘(B) qualified tuition and related expenses 

13 paid by such individual during such individual’s 

14 taxable year shall be treated for purposes of 

15 this section as paid by such other taxpayer. 

16 ‘‘(4) TREATMENT OF CERTAIN PREPAY17 MENTS.—if qualified tuition and related expenses 

18 are paid by the taxpayer during a taxable year for 

19 an academic period which begins during the first 3 

20 months following such taxable year, such academic 

21 period shall be treated for purposes of this section 

22 as beginning during such taxable year. 

23 ‘‘(5) DENIAL OF DOUBLE BENEFIT.—No credit 

24 shall be allowed under this section for any expense 


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1 for which deduction is allowed under any other pro2 vision of this chapter. 

3 ‘‘(6) NO CREDIT FOR MARRIED INDIVIDUALS

4 FILING SEPARATE RETURNS.—If the taxpayer is a 

5 married individual (within the meaning of section 

6 7703), this section shall apply only if the taxpayer 

7 and the taxpayer’s spouse file a joint return for the 

8 taxable year. 

9 ‘‘(7) NONRESIDENT ALIENS.—If the taxpayer is 

10 a nonresident alien individual for any portion of the 

11 taxable year, this section shall apply only if such in12 dividual is treated as a resident alien of the United 

13 States for purposes of this chapter by reason of an 

14 election under subsection (g) or (h) of section 6013. 

15 ‘‘(e) INFLATION ADJUSTMENT.— 

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

17 year beginning after 2009, the $100,000 amount in 

18 subsection (b)(1)(D)(ii) shall each be increased by 

19 an amount equal to— 

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

21 ‘‘(B) the cost-of-living adjustment deter22 mined under section 1(f)(3) for the calendar 

23 year in which the taxable year begins, deter24 mined by substituting ‘calendar year 2008’ for 


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1 ‘calendar year 1992’ in subparagraph (B) 

2 thereof. 

3 ‘‘(2) ROUNDING.—If any amount as adjusted 

4 under paragraph (1) is not a multiple of $1,000, 

5 such amount shall be rounded to the next lowest 

6 multiple of $1,000. 

7 ‘‘(f) REGULATIONS.—The Secretary may prescribe 

8 such regulations as may be necessary or appropriate to 

9 carry out this section, including regulations providing for 

10 a recapture of the credit allowed under this section in 

11 cases where there is a refund in a subsequent taxable year 

12 of any expense which was taken into account in deter13 mining the amount of such credit.’’. 

14 (b) REPEAL OF DEDUCTION FOR QUALIFIED TUI15 TION AND RELATED EXPENSES.—Part VII of subchapter 

16 B of chapter 1 of such Code (relating to additional 

17 itemized deductions for individuals) is amended by strik18 ing section 222. 

19 (c) CONFORMING AMENDMENTS.—(1) Section 62(a) 

20 of such Code is amended by striking paragraph (18). 

21 (2) Subparagraph (A) of section 86(b)(2) of such 

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

23 (3) Subparagraph (B) of section 72(t)(7) of such 

24 Code is amended by striking ‘‘section 25A(g)(2)’’ and in25 serting ‘‘section 25A(d)(2)’’. 


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1 (4) Subparagraph (A) of section 135(c)(4) of such 

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

3 (5) Subparagraph (A) of section 137(b)(3) of such 

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

5 (6) Subparagraph (A) of section 199(d)(2) of such 

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

7 (7) Clause (ii) of section 219(g)(3)(A) of such Code 

8 is amended by striking ‘‘, 222’’. 

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

10 is amended by striking ‘‘, 222’’. 

11 (9) Clause (iii) of section 469(i)(3)(F) of such Code 

12 is amended by striking ‘‘221, and 222’’ and inserting ‘‘and 

13 221’’. 

14 (10) Subsection (d) of section 221 of such Code is 

15 amended— 

16 (A) by striking ‘‘section 25A(g)(2)’’ in para17 graph (2)(B) and inserting ‘‘section 25A(d)(2)’’, and 

18 (B) by striking ‘‘section 25A(f)(2)’’ in the sec19 ond sentence of paragraph (2) and inserting ‘‘section 

20 25A(c)(3)’’. 

21 (11) Paragarph (3) of section 221(d) of such Code 

22 is amended to read as follows: 

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

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

25 a student 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 workload for the course of study the 

8 student is pursuing.’’. 

9 (12) Subclause (I) of section 529(c)(3)(B)(v) of such 

10 Code is amended by striking ‘‘section 25A(g)(2)’’ and in11 serting ‘‘section 25A(d)(2)’’. 

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

13 is amended by striking ‘‘section 25A(b)(3)’’ and inserting 

14 ‘‘section 221(d)(3)’’. 

15 (14) Subclause (I) of section 530(d)(2)(C)(i) of such 

16 Code is amended by striking ‘‘section 25A(g)(2)’’ and in17 serting ‘‘section 25A(d)(2)’’. 

18 (15) Clause (iii) of section 530(d)(4)(B) of such Code 

19 is amended by striking ‘‘section 25A(g)(2)’’ and inserting 

20 ‘‘section 25A(d)(2)’’. 

21 (16) Section 1400O of such Code is amended by add22 ing at the end the following flush sentence: 

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

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


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1 on the day before the date of the enactment of this sen2 tence.’’. 

3 (17) Subparagraph (J) of section 6213(g)(2) of such 

4 Code is amended by striking ‘‘section 25A(g)(1)’’ and in5 serting ‘‘section 25A(d)(1)’’. 

6 (d) CLERICAL AMENDMENTS.—(1) The table of sec7 tions for subpart A of part IV of subchapter A of chapter 

8 1 of such Code is amended by striking the item relating 

9 to section 25A and inserting the following: 

‘‘25A. Qualified tuition and related expenses credit.’’. 

10 (2) The table of sections for part VII of subchapter 

11 B of chapter 1 of such Code is amended by striking the 

12 item relating to section 222. 

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

14 this section shall apply to expenses paid after December 

15 31, 2009, for education furnished in academic periods be16 ginning after such date. 

Æ 


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