I 

108TH CONGRESS 

2D SESSION H. R. 4912 

To amend the Internal Revenue Code of 1986 to expand the Hope Scholarship 

Credit to allow a credit without limitation for 50 percent of higher 

education expenses. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 22, 2004 

Mr. ACKERMAN 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 expand 

the Hope Scholarship Credit to allow a credit without 

limitation for 50 percent of higher education 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 ‘‘Affordable College Tui5 tion Act of 2004’’. 
2 

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1 SEC. 2. EXPANSION OF HOPE SCHOLARSHIP CREDIT TO 50 

2 PERCENT OF QUALIFIED TUITION EXPENSES. 

3 (a) IN GENERAL.—Subsection (b) of section 25A of 

4 the Internal Revenue Code of 1986 (relating to Hope 

5 scholarship credit) is amended to read as follows: 

6 ‘‘(b) HOPE SCHOLARSHIP CREDIT.— 

7 ‘‘(1) PER STUDENT CREDIT.—In the case of 

8 any eligible student for whom an election is in effect 

9 under this section for any taxable year, the Hope 

10 Scholarship Credit is an amount equal to 50 percent 

11 of the qualified tuition and related expenses paid by 

12 the taxpayer during the taxable year (for education 

13 furnished to the eligible student during any aca14 demic period beginning in such taxable year). 

15 ‘‘(2) CREDIT ALLOWED FOR YEAR ONLY IF INDIVIDUAL IS AT LEAST 1 16 ⁄2 TIME STUDENT FOR POR17 TION OF YEAR.—The Hope Scholarship Credit under 

18 subsection (a)(1) shall not be allowed for a taxable 

19 year with respect to the qualified tuition and related 

20 expenses of an individual unless such individual is 

21 an eligible student for at least one academic period 

22 which begins during such year. 

23 ‘‘(3) ELIGIBLE STUDENT.—For purposes of 

24 this subsection, the term ‘eligible student’ means, 

25 with respect to any academic period, a student 

26 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 this section, and 

‘‘(B) is carrying at least 1 5 ⁄2 the normal 

6 full-time work load for the course of study the 

7 student is pursuing.’’. 

8 (b) ADJUSTED GROSS INCOME LIMITATION NOT TO

9 APPLY TO HOPE SCHOLARSHIP CREDIT.—Paragraph (1) 

10 of section 25A(d) of such Code (relating to limitation 

11 based on modified adjusted gross income) is amended— 

12 (1) in the text by striking ‘‘subsection (a)’’ and 

13 inserting ‘‘subsection (a)(2)’’, and 

14 (2) in the heading by inserting ‘‘OF LIFETIME

15 LEARNING CREDIT’’. 

16 (c) CONFORMING AMENDMENT.—Subsection (h) of 

17 such section (relating to inflation adjustments) is amended 

18 to read as follows: 

19 ‘‘(h) INFLATION ADJUSTMENTS OF INCOME LIMITS

20 APPLICABLE TO LIFETIME LEARNING CREDIT.— 

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

22 year beginning after 2001, the $40,000 and $80,000 

23 amounts in subsection (d)(2) shall each be increased 

24 by an amount equal to— 

25 ‘‘(A) such dollar amount, multiplied by 
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1 ‘‘(B) the cost-of-living adjustment deter2 mined under section 1(f)(3) for the calendar 

3 year in which the taxable year begins, deter4 mined by substituting ‘calendar year 2000’ for 

5 ‘calendar year 1992’ in subparagraph (B) 

6 thereof. 

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

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

9 such amount shall be rounded to the next lowest 

10 multiple of $1,000.’’. 

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

12 this section shall apply to expenses paid after December 

13 31, 2004 (in taxable years ending after such date), for 

14 education furnished in academic periods beginning after 

15 such date. 

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