108TH CONGRESS 

2D SESSION S. 2797 

To amend the Internal Revenue Code of 1986 to expand the deduction 

for college tuition expenses to include expenses for books. 

IN THE SENATE OF THE UNITED STATES 

SEPTEMBER 14, 2004 

Mr. SCHUMER introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL

To amend the Internal Revenue Code of 1986 to expand 

the deduction for college tuition expenses to include expenses for books.

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 ‘‘Textbook Affordability 

5 Act of 2004’’. 

6 SEC. 2. DEDUCTION FOR COLLEGE BOOK EXPENSES. 

7 (a) IN GENERAL.—Section 222(b)(2) of the Internal 

8 Revenue Code of 1986 (relating to applicable dollar limit) 

9 is amended— 
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1 (1) by inserting ‘‘with respect to qualified tui2 tion and related expenses described in subsection 

3 (d)(1)(A)(i)’’ after ‘‘amount’’ in the matter pre4 ceding clause (i) in subparagraph (B), 

5 (2) by redesignating subparagraph (C) as sub6 paragraph (F), and 

7 (3) by inserting after subparagraph (B) the fol8 lowing new subparagraphs: 

9 ‘‘(C) BOOKS.—In the case of any taxable 

10 year beginning after 2003, the applicable dollar 

11 amount with respect to qualified tuition and re12 lated expenses described in subsection 

13 (d)(1)(A)(ii) shall be equal to $1,000 reduced 

14 (but not below zero) by the amount determined 

15 under subparagraph (D). 

16 ‘‘(D) AMOUNT OF REDUCTION.—The 

17 amount determined under this subparagraph 

18 equals the amount which bears the same ratio 

19 to the amount which would be so taken into ac20 count as— 

21 ‘‘(i) the excess of— 

22 ‘‘(I) the taxpayer’s adjusted 

23 gross income for such taxable year, 

24 over 
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1 ‘‘(II) $65,000 ($130,000 in the 

2 case of a joint return), bears to 

3 ‘‘(ii) $15,000 ($30,000 in the case of 

4 a joint return). 

5 ‘‘(E) INFLATION ADJUSTMENTS.— 

6 ‘‘(i) IN GENERAL.—In the case of any 

7 taxable year beginning in a calendar year 

8 after 2004, both of the dollar amounts in 

9 subparagraph (D)(i)(II) shall be increased 

10 by an amount equal to— 

11 ‘‘(I) such dollar amount, multi12 plied by 

13 ‘‘(II) the cost-of-living adjust14 ment determined under section 1(f)(3) 

15 for the calendar year in which the tax16 able year begins, by substituting ‘cal17 endar year 2003’ for ‘calendar year 

18 1992’ in subparagraph (B) thereof. 

19 ‘‘(ii) ROUNDING.—If any amount as 

20 adjusted under clause (i) is not a multiple 

21 of $50, such amount shall be rounded to 

22 the nearest multiple of $50.’’. 

23 (b) EXPANSION OF RELATED EXPENSES.—Para24 graph (1) of section 222(d) of the Internal Revenue Code 
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1 of 1986 (relating to definitions and special rules) is 

2 amended to read as follows: 

3 ‘‘(1) QUALIFIED TUITION AND RELATED EX4 PENSES.— 

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

6 tuition and related expenses’— 

7 ‘‘(i) has the meaning given such term 

8 by section 25(f), and 

9 ‘‘(ii) includes books (within the mean10 ing of section 529(e)(3)(A)(i)). 

11 ‘‘(B) SPECIAL RULE.—Such expenses shall 

12 be reduced in the same manner as under sec13 tion 25A(g)(2).’’. 

14 (c) DEDUCTION FOR BOOKS MADE PERMANENT.—

15 Section 222(e) of the Internal Revenue Code of 1986 (re16 lating to termination) is amended by striking ‘‘This’’ and 

17 inserting ‘‘Except with respect to qualified tuition and re18 lated expenses described in subsection (d)(1)(A)(ii), this’’. 

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

20 this section shall apply to payments made in taxable years 

21 beginning after December 31, 2003.

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