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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2797 Introduced in Senate (IS)]

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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Textbook Affordability Act of 
2004''.

SEC. 2. DEDUCTION FOR COLLEGE BOOK EXPENSES.

    (a) In General.--Section 222(b)(2) of the Internal Revenue Code of 
1986 (relating to applicable dollar limit) is amended--
            (1) by inserting ``with respect to qualified tuition and 
        related expenses described in subsection (d)(1)(A)(i)'' after 
        ``amount'' in the matter preceding clause (i) in subparagraph 
        (B),
            (2) by redesignating subparagraph (C) as subparagraph (F), 
        and
            (3) by inserting after subparagraph (B) the following new 
        subparagraphs:
                    ``(C) Books.--In the case of any taxable year 
                beginning after 2003, the applicable dollar amount with 
                respect to qualified tuition and related expenses 
                described in subsection (d)(1)(A)(ii) shall be equal to 
                $1,000 reduced (but not below zero) by the amount 
                determined under subparagraph (D).
                    ``(D) Amount of reduction.--The amount determined 
                under this subparagraph equals the amount which bears 
                the same ratio to the amount which would be so taken 
                into account as--
                            ``(i) the excess of--
                                    ``(I) the taxpayer's adjusted gross 
                                income for such taxable year, over
                                    ``(II) $65,000 ($130,000 in the 
                                case of a joint return), bears to
                            ``(ii) $15,000 ($30,000 in the case of a 
                        joint return).
                    ``(E) Inflation adjustments.--
                            ``(i) In general.--In the case of any 
                        taxable year beginning in a calendar year after 
                        2004, both of the dollar amounts in 
                        subparagraph (D)(i)(II) shall be increased by 
                        an amount equal to--
                                    ``(I) such dollar amount, 
                                multiplied by
                                    ``(II) the cost-of-living 
                                adjustment determined under section 
                                1(f)(3) for the calendar year in which 
                                the taxable year begins, by 
                                substituting `calendar year 2003' for 
                                `calendar year 1992' in subparagraph 
                                (B) thereof.
                            ``(ii) Rounding.--If any amount as adjusted 
                        under clause (i) is not a multiple of $50, such 
                        amount shall be rounded to the nearest multiple 
                        of $50.''.
    (b) Expansion of Related Expenses.--Paragraph (1) of section 222(d) 
of the Internal Revenue Code of 1986 (relating to definitions and 
special rules) is amended to read as follows:
            ``(1) Qualified tuition and related expenses.--
                    ``(A) In general.--The term `qualified tuition and 
                related expenses'--
                            ``(i) has the meaning given such term by 
                        section 25(f), and
                            ``(ii) includes books (within the meaning 
                        of section 529(e)(3)(A)(i)).
                    ``(B) Special rule.--Such expenses shall be reduced 
                in the same manner as under section 25A(g)(2).''.
    (c) Deduction for Books Made Permanent.--Section 222(e) of the 
Internal Revenue Code of 1986 (relating to termination) is amended by 
striking ``This'' and inserting ``Except with respect to qualified 
tuition and related expenses described in subsection (d)(1)(A)(ii), 
this''.
    (d) Effective Date.--The amendments made by this section shall 
apply to payments made in taxable years beginning after December 31, 
2003.
                                 <all>
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