I 

111TH CONGRESS 

2D SESSION H. R. 5286 

To amend the Internal Revenue Code of 1986 to allow a credit against 

tax for qualified tuition and related expenses. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 12, 2010 

Mr. BOSWELL 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 allow a 

credit against 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 ‘‘Universal College 

5 Credit Act’’. 

6 SEC. 2. UNIVERSAL COLLEGE CREDIT. 

7 (a) IN GENERAL.—Subpart A of part IV of sub8 chapter A of chapter 1 of the Internal Revenue Code of 

9 1986 is amended by inserting after section 25D the fol10 lowing new section: 


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1 ‘‘SEC. 25E. UNIVERSAL COLLEGE CREDIT. 

2 ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in3 dividual for whom an election is in effect under this sec4 tion for a taxable year, there shall be allowed as a credit 

5 against the tax imposed by this chapter for the taxable 

6 year an amount equal to the qualified tuition and related 

7 expenses paid by the taxpayer during the taxable year. 

8 ‘‘(b) DOLLAR LIMITATION.—The amount allowed as 

9 a credit under subsection (a) with respect to each indi10 vidual for whom qualified tuition and related expenses are 

11 paid by the taxpayer during the taxable year shall not ex12 ceed $5,000. 

13 ‘‘(c) CREDIT ALLOWED ONLY FOR 4 YEARS OF UN14 DERGRADUATE EDUCATION AND 6 YEARS OF GRADUATE

15 EDUCATION.—An election to have this section apply with 

16 respect to any individual for whom qualified tuition and 

17 related expenses are paid by the taxpayer during the tax18 able year may not be made for any taxable year if such 

19 an election (by the taxpayer or any other individual) is 

20 in effect with respect to— 

21 ‘‘(1) the undergraduate education expenses of 

22 such individual for any 4 prior taxable years, or 

23 ‘‘(2) the graduate education expenses of such 

24 individual for any 6 prior taxable years. 

25 ‘‘(d) DENIAL OF DOUBLE BENEFIT.—No credit shall 

26 be allowed under this section with respect to the qualified 


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1 tuition and related expenses of any individual if a credit 

2 or deduction is allowed under any other provision of this 

3 chapter with respect to such expenses. 

4 ‘‘(e) DEFINITIONS AND SPECIAL RULES.—For pur5 poses of this section— 

6 ‘‘(1) QUALIFIED TUITION AND RELATED EX7 PENSES.— 

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

9 tuition and related expenses’ means tuition and 

10 fees required for the enrollment or attendance 

11 of— 

12 ‘‘(i) the taxpayer, 

13 ‘‘(ii) the taxpayer’s spouse, or 

14 ‘‘(iii) any dependent of the taxpayer 

15 with respect to whom the taxpayer is al16 lowed a deduction under section 151, 

17 at an eligible educational institution for courses 

18 of instruction of such individual at such institu19 tion. 

20 ‘‘(B) EXCEPTION FOR EDUCATION INVOLV21 ING SPORTS, ETC.—Such term does not include 

22 expenses with respect to any course or other 

23 education involving sports, games, or hobbies, 

24 unless such course or other education is part of 

25 the individual’s degree program. 


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1 ‘‘(C) EXCEPTION FOR NONACADEMIC

2 FEES.—Such term does not include student ac3 tivity fees, athletic fees, insurance expenses, or 

4 other expenses unrelated to an individual’s aca5 demic course of instruction. 

6 ‘‘(D) ADJUSTMENT FOR SCHOLARSHIPS

7 AND SECTION 529 DISTRIBUTIONS.—The 

8 amount of qualified tuition and related expenses 

9 otherwise taken into account under subsection 

10 (a) with respect to an individual for the taxable 

11 year shall be reduced— 

12 ‘‘(i) as provided in section 25A(g)(2), 

13 and 

14 ‘‘(ii) by the amount of such expenses 

15 which are taken into account in deter16 mining the exclusions under sections 

17 529(c)(3)(B) and 530(d)(2). 

18 ‘‘(2) ELIGIBLE EDUCATIONAL INSTITUTION.— 

19 The term ‘eligible educational institution’ means an 

20 institution— 

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

22 the Higher Education Act of 1965 (20 U.S.C. 

23 1088), as in effect on the date of the enactment 

24 of this section, and 


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

2 program under title IV of such Act. 

3 ‘‘(3) UNDERGRADUATE EDUCATION EX4 PENSES.—The term ‘undergraduate education ex5 penses’ means the qualified tuition and related ex6 penses paid by the taxpayer during a taxable year 

7 for an individual enrolled in an undergraduate 

8 course of study during such taxable year. 

9 ‘‘(4) GRADUATE EDUCATION EXPENSES.—The 

10 term ‘graduate education expenses’ means the quali11 fied tuition and related expenses paid by the tax12 payer during a taxable year for an individual en13 rolled in a graduate or professional course of study 

14 during such taxable year. 

15 ‘‘(5) ADJUSTMENT FOR CERTAIN SCHOLAR16 SHIPS, ETC.—The amount of qualified tuition and 

17 related expenses otherwise taken into account under 

18 subsection (a) with respect to an individual for an 

19 academic period shall be reduced by the sum of any 

20 amounts paid for the benefit of such individual 

21 which are allocable to such period as— 

22 ‘‘(A) a qualified scholarship which is ex23 cludable from gross income under section 117, 

24 ‘‘(B) an educational assistance allowance 

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


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1 United States Code, or under chapter 1606 of 

2 title 10, United States Code, and 

3 ‘‘(C) a payment (other than a gift, be4 quest, devise, or inheritance within the meaning 

5 of section 102(a) for such individual’s edu6 cational expenses, or attributable to such indi7 vidual’s enrollment at an eligible educational in8 stitution, which is excludable from gross income 

9 under any law of the United States. 

10 ‘‘(f) ELECTION NOT TO HAVE SECTION APPLY.—A 

11 taxpayer may elect to have this section not apply with re12 spect to an individual for any taxable year.’’. 

13 (b) COORDINATION WITH EXCLUSION FOR INCOME

14 FROM UNITED STATES SAVINGS BONDS USED TO PAY

15 HIGHER EDUCATION TUITION AND FEES.—Subpara16 graph (A) of section 135(d)(2) of such Code is amended 

17 by inserting ‘‘or 25E’’ after ‘‘section 25A’’. 

18 (c) CLERICAL AMENDMENT.—The table of sections 

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

20 of such Code is amended by inserting after the item relat21 ing to section 25D the following new item: 

‘‘Sec. 25E. Universal college credit.’’. 

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

23 this section shall apply to taxable years ending after the 

24 date of the enactment of this Act. 

Æ 


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