I 

113TH CONGRESS 

2D SESSION H. R. 5509 

To amend the Internal Revenue Code of 1986 to increase and extend the 

American Opportunity Tax Credit and to increase the student loan interest deduction. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 17, 2014 

Mr. BRALEY of Iowa 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 increase 

and extend the American Opportunity Tax Credit and 

to increase the student loan interest deduction. 

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 Tuition and 

5 Debt Relief Act of 2014’’. 


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1 SEC. 2. AMERICAN OPPORTUNITY TAX CREDIT INCREASE 

2 AND EXTENSION. 

3 (a) CREDIT MADE PERMANENT.—Section 25A(i) of 

4 the Internal Revenue Code of 1986 is amended by striking 

5 ‘‘and before 2018’’. 

6 (b) INCREASE IN CREDIT AMOUNT.—Paragraph (1) 

7 of section 25A(i) of the Internal Revenue Code of 1986 

8 is amended— 

9 (1) in subparagraph (A) by striking ‘‘$2,000’’ 

10 and inserting ‘‘$2,500’’, and 

11 (2) in subparagraph (B) by striking ‘‘as exceeds 

12 $2,000 but does not exceed $4,000’’ and inserting 

13 ‘‘as exceeds $2,500 but does not exceed $4,500’’. 

14 (c) ADJUSTMENT FOR INFLATION.—Section 25A(i) 

15 of the Internal Revenue Code of 1986 is amended by add16 ing at the end the following new paragraph: 

17 ‘‘(7) ADJUSTMENTS FOR INFLATION.—In the 

18 case of a taxable year beginning after December 31, 

19 2015, each of the dollar amounts in subparagraph 

20 (A) and (B) of paragraph (1) and clause (ii) of 

21 paragraph (4)(A) shall be increased by an amount 

22 equal to— 

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

24 ‘‘(B) the cost-of-living adjustment deter25 mined under section 1(f)(3) for the calendar 

26 year in which the taxable year begins, deterVerDate Sep 11 2014 04:12 Sep 23, 2014 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H5509.IH H5509

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1 mined by substituting ‘calendar year 2014’ for 

2 ‘calendar year 1992’ in subparagraph (B) 

3 thereof. 

4 If any amount as increased under the preceding sen5 tence is not a multiple of $10, such amount shall be 

6 rounded to the nearest multiple of $10.’’. 

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

8 this section shall apply to taxable years beginning after 

9 December 31, 2014. 

10 SEC. 3. STUDENT LOAN INTEREST DEDUCTION INCREASE. 

11 (a) IN GENERAL.—Paragraph (1) of section 221(b) 

12 of the Internal Revenue Code of 1986 is amended to read 

13 as follows: 

14 ‘‘(1) IN GENERAL.—Except as provided in para15 graph (2), the deduction allowed by subsection (a) 

16 for the taxable year shall not exceed $5,000.’’. 

17 (b) ADJUSTMENT FOR INFLATION.— 

18 (1) IN GENERAL.—Section 221(f) of the Inter19 nal Revenue Code of 1986 is amended by redesig20 nating paragraph (2) as paragraph (3) and by in21 serting after paragraph (1) the following new para22 graph: 

23 ‘‘(2) ADJUSTMENT FOR INFLATION.—In the 

24 case of a taxable year beginning after December 31, 


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1 2015, the $5,000 dollar amount in paragraph (1) 

2 shall be increased by an amount equal to— 

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

4 ‘‘(B) the cost-of-living adjustment deter5 mined under section 1(f)(3) for the calendar 

6 year in which the taxable year begins, deter7 mined by substituting ‘calendar year 2014’ for 

8 ‘calendar year 1992’ in subparagraph (B) 

9 thereof.’’. 

10 (2) CONFORMING AMENDMENT.—Section 

11 221(f)(3) of the Internal Revenue Code of 1986, as 

12 redesignated by paragraph (1), is amended to read 

13 as follows: 

14 ‘‘(3) ROUNDING.— 

15 ‘‘(A) MODIFIED ADJUSTED GROSS INCOME

16 THRESHOLDS.—If any amount as adjusted 

17 under paragraph (1) is not a multiple of 

18 $5,000, such amount shall be rounded to the 

19 next lowest multiple of $5,000. 

20 ‘‘(B) DEDUCTION LIMITATION.—If any 

21 amount as increased under paragraph (2) is not 

22 a multiple of $10, such amount shall be round23 ed to the nearest multiple of $10.’’. 


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

2 this section shall apply to taxable years beginning after 

3 December 31, 2014. 

Æ 


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