I 
111TH CONGRESS 
2D SESSION 
H. R. 6033 
To amend the Internal Revenue Code of 1986 to consolidate education tax 
benefits into one credit against income tax for higher education expenses. 
IN THE HOUSE OF REPRESENTATIVES 
JULY 30, 2010 
Mr. HALL of New York 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 consolidate 
education tax benefits into one credit against income 
tax for higher education expenses. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Higher Education Af-
fordability Act of 2010’’. 
SEC. 2. CONSOLIDATION OF EDUCATION TAX INCENTIVES 
INTO HIGHER EDUCATION TAX CREDIT. 
(a) IN GENERAL.—Section 25A of the Internal Rev-
enue Code of 1986 (relating to Hope and Lifetime Learn-
ing credits) is amended to read as follows: 
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‘‘SEC. 25A. HIGHER EDUCATION TAX CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount 
equal so much of the higher education expenses paid by 
the taxpayer during the taxable year (for education fur-
nished during any academic period beginning in such tax-
able year with respect to each student for whom an elec-
tion is in effect under this section for any taxable year) 
as does not exceed $3,000. 
‘‘(b) LIMITATIONS.— 
‘‘(1) 
LIFETIME
CREDIT
LIMITATION.—The 
amount of the credit allowed under subsection (a) 
for any taxable year with respect to any student 
shall not exceed the excess of— 
‘‘(A) $15,000, over 
‘‘(B) the aggregate credit allowed under 
subsection (a) with respect to such individual 
for all prior taxable years. 
‘‘(2) CREDIT LIMITATION BASED ON MODIFIED 
ADJUSTED GROSS INCOME.— 
‘‘(A) IN
GENERAL.—The amount which 
would (but for this paragraph) be taken into ac-
count under subsection (a) for the taxable year 
shall be reduced (but not below $500) by the 
amount determined under subparagraph (B). 
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‘‘(B) 
AMOUNT
OF
REDUCTION.—The 
amount determined under this subparagraph is 
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 modified ad-
justed gross income for such taxable 
year, over 
‘‘(II) 
the 
applicable 
amount 
under subparagraph (D), bears to 
‘‘(ii) $24,000 ($48,000 in the case of 
a joint return). 
‘‘(C) MODIFIED
ADJUSTED
GROSS
IN-
COME.—The term ‘modified adjusted gross in-
come’ means the adjusted gross income of the 
taxpayer for the taxable year increased by any 
amount excluded from gross income under sec-
tion 911, 931, or 933. 
‘‘(D) APPLICABLE AMOUNT.—The applica-
ble amount under this subparagraph is— 
‘‘(i) in the case of a joint return, 200 
percent of the dollar amount in effect 
under clause (ii) for the taxable year, and 
‘‘(ii) in any other case, $80,000. 
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‘‘(3) LIMITATION
BASED
ON
AMOUNT
OF 
TAX.—In the case of a taxable year to which section 
26(a)(2) does not apply, the credit allowed under 
subsection (a) for the taxable year shall not exceed 
the excess of— 
‘‘(A) the sum of the regular tax liability 
(as defined in section 26(b)) plus the tax im-
posed by section 55, over 
‘‘(B) the sum of the credits allowable 
under this subpart (other than this section and 
section 23) and section 27 for the taxable year. 
‘‘(c) DEFINITIONS.—For purposes of this sub-
section— 
‘‘(1) HIGHER EDUCATION EXPENSE.—The term 
‘higher education expense’ means any expense of a 
type which is taken into account in determining the 
cost of attendance (as defined in section 472 of the 
Higher Education Act of 1965, as in effect on the 
date of the enactment of this section) of a student 
who is— 
‘‘(A) the taxpayer, 
‘‘(B) the taxpayer’s spouse, or 
‘‘(C) any dependent of the taxpayer with 
respect to whom the taxpayer is allowed a de-
duction under section 151, 
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‘‘(B) higher education expenses paid by 
such individual during such individual’s taxable 
year shall be treated for purposes of this section 
as paid by such other taxpayer. 
‘‘(4) 
TREATMENT
OF
CERTAIN
PREPAY-
MENTS.—If higher education expense is paid by the 
taxpayer during a taxable year for an academic pe-
riod which begins during the first 3 months fol-
lowing such taxable year, such academic period shall 
be treated for purposes of this section as beginning 
during such taxable year. 
‘‘(5) DENIAL OF DOUBLE BENEFIT.—No credit 
shall be allowed under this section for any expense 
for which deduction is allowed under any other pro-
vision of this chapter. 
‘‘(6) NO
CREDIT
FOR
MARRIED
INDIVIDUALS 
FILING SEPARATE RETURNS.—If the taxpayer is a 
married individual (within the meaning of section 
7703), this section shall apply only if the taxpayer 
and the taxpayer’s spouse file a joint return for the 
taxable year. 
‘‘(7) NONRESIDENT ALIENS.—If the taxpayer is 
a nonresident alien individual for any portion of the 
taxable year, this section shall apply only if such in-
dividual is treated as a resident alien of the United 
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States for purposes of this chapter by reason of an 
election under subsection (g) or (h) of section 6013. 
‘‘(e) PORTION OF CREDIT REFUNDABLE.—The ag-
gregate credits allowed to a taxpayer under subpart C 
shall be increased by 20 percent of the portion of the 
amount of the credit which would have been allowed to 
the taxpayer under this section without regard to this sub-
section and the limitation under section 26(a)(2) or sub-
section (b)(4), as the case may be. The amount of the 
credit allowed under this subsection shall not be treated 
as a credit allowed under this subpart and shall reduce 
the amount of credit otherwise allowable under subsection 
(a) without regard to section 26(a)(2) or subsection 
(b)(3), as the case may be. 
‘‘(f) ELECTION NOT TO HAVE SECTION APPLY.—A 
taxpayer may elect not to have this section apply with re-
spect to the higher education expenses of an individual for 
any taxable year. 
‘‘(g) INFLATION ADJUSTMENT.— 
‘‘(1) IN GENERAL.—In the case of a taxable 
year beginning after 2011, the $3,000 and $15,000 
amount in subsections (a) and (b)(1), respectively, 
shall each be increased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
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‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2010’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
‘‘(2) ROUNDING.—If any amount as adjusted 
under subparagraph (A) is not a multiple of $1,000, 
such amount shall be rounded to the next lowest 
multiple of $1,000. 
‘‘(h) REGULATIONS.—The Secretary may prescribe 
such regulations as may be necessary or appropriate to 
carry out this section, including regulations providing for 
a recapture of the credit allowed under this section in 
cases where there is a refund in a subsequent taxable year 
of any expense which was taken into account in deter-
mining the amount of such credit.’’. 
(b) ELIMINATION OF 529 PLAN REDUCTION FOR 
EDUCATION CREDIT.—Clause (v) of section 529(c)(3)(B) 
of such Code is amended by striking ‘‘shall be reduced’’ 
and all that follows through the period at the end and 
inserting the following ‘‘shall be reduced as provided in 
section 25A(g)(2).’’. 
(c) CONFORMING AMENDMENTS.— 
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(1) Subparagraph (B) of section 24(b)(3) of 
such Code is amended by striking ‘‘25A(i)’’ and in-
serting ‘‘25A’’. 
(2) Clause (ii) of section 25(e)(1)(C) of such 
Code is amended by striking ‘‘2A(i)’’ inserting 
‘‘25A’’. 
(3) Paragraph (2) of section 25B(g) of such 
Code is amended by striking ‘‘25A(i)’’ and inserting 
‘‘25A’’. 
(4) Paragraph (2) of section 1400C(d) of such 
Code is amended by striking ‘‘25A(i)’’ and inserting 
‘‘25A’’. 
(5) Section 62(a) of such Code is amended by 
striking paragraph (18). 
(6) Subparagraph (A) of section 86(b)(2) of 
such Code is amended by striking ‘‘, 222’’. 
(7) Subparagraph (B) of section 72(t)(7) of 
such 
Code 
is 
amended 
by 
striking 
‘‘section 
25A(g)(2)’’ and inserting ‘‘section 25A(d)(2)’’. 
(8) Subparagraph (A) of section 135(c)(4) of 
such Code is amended by striking ‘‘, 222’’. 
(9) Subparagraph (A) of section 137(b)(3) of 
such Code is amended by striking ‘‘, 222’’. 
(10) Subparagraph (A) of section 199(d)(2) of 
such Code is amended by striking ‘‘, 222’’. 
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(11) Clause (ii) of section 219(g)(3)(A) of such 
Code is amended by striking ‘‘, 222’’. 
(12) Clause (i) of section 221(b)(2)(C) of such 
Code is amended by striking ‘‘, 222’’. 
(13) Clause (iii) of section 469(i)(3)(F) of such 
Code is amended by striking ‘‘221, and 222’’ and in-
serting ‘‘and 221’’. 
(14) Subsection (d) of section 221 of such Code 
is amended— 
(A) by striking ‘‘section 25A(g)(2)’’ in 
paragraph 
(2)(B) 
and 
inserting 
‘‘section 
25A(d)(2)’’, and 
(B) by striking ‘‘section 25A(f)(2)’’ in the 
second sentence of paragraph (2) and inserting 
‘‘section 25A(c)(2)’’. 
(15) Paragraph (3) of section 221(d) of such 
Code is amended to read as follows: 
‘‘(3) ELIGIBLE STUDENT.—The term ‘eligible 
student’ means, with respect to any academic period, 
a student who— 
‘‘(A) meets the requirements of section 
484(a)(1) of the Higher Education Act of 1965 
(20 U.S.C. 1091(a)(1)), as in effect on the date 
of the enactment of the Taxpayer Relief Act of 
1997, and 
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‘‘(B) is carrying at least 1⁄2 the normal 
full-time workload for the course of study the 
student is pursuing.’’. 
(16) Subclause (I) of section 529(c)(3)(B)(v) of 
such Code, as amended by this Act, is amended by 
striking 
‘‘section 
25A(g)(2)’’ 
and 
inserting 
‘‘25A(d)(2)’’. 
(17) Clause (i) of section 529(e)(3)(B) of such 
Code is amended by striking ‘‘section 25A(b)(3)’’ 
and inserting ‘‘section 221(d)(3)’’. 
(18) Subclause (I) of section 530(d)(2)(C)(i) of 
such 
Code 
is 
amended 
by 
striking 
‘‘section 
25A(g)(2)’’ and inserting ‘‘section 25A(d)(2)’’. 
(19) Clause (iii) of section 530(d)(4)(B) of such 
Code is amended by striking ‘‘section 25A(g)(2)’’ 
and inserting ‘‘25A(d)(2)’’. 
(20) Section 1400O of such Code is amended 
by adding at the end the following flush sentence: 
‘‘For purposes of this section, any reference to sec-
tion 25A shall be treated as a reference to such section 
as in effect on the day before the date of the enactment 
of this sentence.’’. 
(21) Subsection (e) of section 6050S of such 
Code is amended by striking ‘‘subsection (g)(2)’’ and 
inserting ‘‘subsection (d)(2)’’. 
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