I 
111TH CONGRESS 
1ST SESSION 
H. R. 386 
To amend the Internal Revenue Code of 1986 to simplify and improve 
the current education tax incentives. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 9, 2009 
Mr. DOGGETT 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 simplify 
and improve the current education tax incentives. 
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 ‘‘College Learning Ac-
cess Simplicity and Savings Act of 2009’’ or the ‘‘CLASS 
Act of 2009’’. 
SEC. 2. CREATION OF COLLEGE AFFORDABILITY CREDIT 
AND SIMPLIFICATION OF EDUCATION TAX 
BENEFITS. 
(a) COLLEGE AFFORDABILITY CREDIT.— 
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(1) Paragraph (1) of section 25A(a) of the In-
ternal Revenue Code of 1986 is amended by striking 
‘‘the Hope Scholarship Credit’’ and inserting ‘‘the 
College Affordability Credit’’. 
(2) Subsection (b) of section 25A of such Code 
is amended to read as follows: 
‘‘(b) COLLEGE AFFORDABILITY CREDIT.— 
‘‘(1) ALLOWANCE OF CREDIT.—In the case of 
any eligible student for whom an election is in effect 
under this section for any taxable year, there shall 
be allowed as a credit against the tax imposed by 
this chapter for the taxable year an amount equal to 
the sum of— 
‘‘(A) 100 percent of so much of the quali-
fied tuition and related expenses paid by the 
taxpayer during the taxable year (with respect 
to attendance of the eligible student at an eligi-
ble educational institution during any academic 
period beginning in such taxable year) as does 
not exceed $1,200, and 
‘‘(B) 50 percent of so much of such ex-
penses as exceeds $1,200, but does not exceed 
$4,800. 
‘‘(2) 
LIFETIME
CREDIT
LIMITATION.—The 
amount of the credit allowed under paragraph (1) 
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for any taxable year with respect to any eligible stu-
dent shall not exceed the excess of— 
‘‘(A) $12,000, over 
‘‘(B) the aggregate credit allowed under 
subsection (a) with respect to such eligible stu-
dent for all prior taxable years. 
‘‘(3) CREDIT
ALLOWED
ONLY
FOR
FIRST
YEARS OF GRADUATE EDUCATION.—No credit shall 
be allowed under subsection (a)(1) for a taxable year 
with respect to the qualified tuition and related ex-
penses of an eligible student if the student has com-
pleted (before the beginning of such taxable year) 2 
years of graduate education at one or more eligible 
educational institutions. 
‘‘(4) CREDIT ALLOWED FOR YEAR ONLY IF IN-
DIVIDUAL IS AT LEAST 1⁄2 TIME STUDENT FOR POR-
TION
OF
YEAR.—The College Affordability Credit 
under subsection (a)(1) shall not be allowed for a 
taxable year with respect to the qualified tuition and 
related expenses of an individual unless such indi-
vidual is an eligible student for at least one aca-
demic period which begins during such year. 
‘‘(5) ELIGIBLE STUDENT.—The term ‘eligible 
student’ means, with respect to any academic period, 
any individual who— 
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‘‘(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 
‘‘(B) is carrying at least 1⁄2 the normal 
full-time work load for the course of study the 
student is pursuing.’’. 
(b) QUALIFIED TUITION AND RELATED EXPENSES 
TO INCLUDE REQUIRED COURSE MATERIALS.—Subpara-
graph (A) of section 25A(f)(1) of such Code is amended 
by striking ‘‘tuition and fees’’ and inserting ‘‘tuition, fees, 
and course materials’’. 
(c) INCREASED INCOME LIMITATION.—Subsection 
(d) of section 25A of such Code is amended to read as 
follows: 
‘‘(d) LIMITATION BASED ON MODIFIED ADJUSTED 
GROSS INCOME.— 
‘‘(1) IN GENERAL.—The amount which would 
(but for this paragraph) be taken into account under 
subsection (a) for the taxable year shall be reduced 
(but not below zero) by the amount determined 
under paragraph (2). 
‘‘(2) AMOUNT
OF
REDUCTION.—The amount 
determined under this subparagraph is the amount 
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which bears the same ratio to the amount which 
would be so taken into account as— 
‘‘(A) the excess of— 
‘‘(i) the taxpayer’s modified adjusted 
gross income for such taxable year, over 
‘‘(ii) the applicable amount under 
paragraph (4), bears to 
‘‘(B) $25,000 ($50,000 in the case of a 
joint return). 
‘‘(3) MODIFIED
ADJUSTED
GROSS
INCOME.— 
The term ‘modified adjusted gross income’ means 
the adjusted gross income of the taxpayer for the 
taxable year increased by any amount excluded from 
gross income under section 911, 931, or 933. 
‘‘(4) APPLICABLE
AMOUNT.—The applicable 
amount under this subparagraph is— 
‘‘(A) in the case of a joint return, 200 per-
cent of the dollar amount in effect under sub-
paragraph (B) for the taxable year, and 
‘‘(B) in any other case, $50,000.’’. 
(d) MODIFIED
INFLATION
ADJUSTMENT.—Para-
graph (2) of section 25A(h) of such Code is amended to 
read as follows: 
‘‘(2) INCOME LIMITS.— 
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by reason of subsection (b) (without regard to this 
subsection 
and 
the 
limitation 
under 
section 
26(a)(2)). The amount of the credit allowed under 
this subsection shall not be treated as a credit al-
lowed under this subpart and shall reduce the 
amount of credit otherwise allowable under sub-
section (a) (without regard to section 26(a)(2)). 
‘‘(2) REDUCTION OF CREDIT.—In the case of a 
taxable year to which 26(a)(2) does not apply, the 
credit determined under paragraph (1) for the tax-
able year shall be reduced by the amount of tax im-
posed by section 55 (relating to alternative minimum 
tax) with respect to such taxpayer for such taxable 
year.’’. 
(f) REPEAL OF DEDUCTION FOR QUALIFIED TUI-
TION AND RELATED EXPENSES.— 
(1) IN GENERAL.—Part VII of subchapter B of 
chapter 1 of such Code (relating to additional 
itemized deductions for individuals) is amended by 
striking section 222. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for part VII of subchapter B of chapter 1 of 
such Code is amended by striking the item relating 
to section 222. 
(g) CONFORMING AMENDMENTS.— 
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(1) The heading for Section 25A of such Code 
is amended by striking ‘‘HOPE’’ and inserting 
‘‘COLLEGE AFFORDABILITY’’. 
(2) Section 25A(c)(2)(A) of such Code is 
amended— 
(A) by striking ‘‘Hope Scholarship Credit’’ 
and inserting ‘‘College Affordability Credit’’, 
and 
(B) by striking ‘‘HOPE’’ in the heading 
thereof and inserting ‘‘COLLEGE
AFFORD-
ABILITY’’. 
(3) Section 62(a) of such Code is amended by 
striking paragraph (18). 
(4) Subparagraph (A) of section 86(b)(2) of 
such Code is amended by striking ‘‘, 222’’. 
(5) Subparagraph (A) of section 135(c)(4) of 
such Code is amended by striking ‘‘, 222’’. 
(6) Subparagraph (A) of section 137(b)(3) of 
such Code is amended by striking ‘‘, 222’’. 
(7) Subparagraph (A) of section 199(d)(2) of 
such Code is amended by striking ‘‘, 222’’. 
(8) Clause (ii) of section 219(g)(3)(A) of such 
Code is amended by striking ‘‘, 222’’. 
(9) Clause (i) of section 221(b)(2)(C) of such 
Code is amended by striking ‘‘, 222’’. 
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(10) Clause (iii) of section 469(i)(3)(F) of such 
Code is amended by striking ‘‘221, and 222’’ and in-
serting ‘‘and 221’’. 
(11) Paragraph (3) of section 221(d) of such 
Code is amended by striking ‘‘25A(b)(3)’’ and in-
serting ‘‘25A(b)(5)’’. 
(12) 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)’’. 
(13) The heading for clause (v) of section 
529(c)(3)(B) of such Code is amended by striking 
‘‘HOPE’’ and inserting ‘‘COLLEGE AFFORDABILITY’’. 
(14) The heading for Subparagraph (C) of sec-
tion 530(d)(2) of such Code is amended by striking 
‘‘HOPE’’ and inserting ‘‘COLLEGE AFFORDABILITY’’. 
(15) Section 1400O of such Code is amended 
by adding at the end the following flush sentence: 
‘‘For purposes of this section, any reference to section 25A 
shall be treated as a reference to such section as in effect 
on the day before the date of the enactment of this sen-
tence.’’. 
(16) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting ‘‘, 
25A,’’ after ‘‘section 35’’. 
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(h) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
of such Code is amended by striking the item relating to 
section 25A and inserting the following new item: 
‘‘Sec. 25A. College Affordability and Lifetime Learning credits.’’. 
(i) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses paid after December 
31, 2008, for education furnished in academic periods be-
ginning after such date. 
Æ 
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