ered to be made to a section or other provision of the
Higher Education Act of 1965 (20 U.S.C. 1001 et seq.).
SEC. 2. FAMILY CONTRIBUTION FOR DEPENDENT STU-
DENTS.
(a) 
PARENTS’ 
AVAILABLE
INCOME.—Section
475(c)(1) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (D);
(2) by striking the period at the end of sub-
paragraph (E) and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(F) the amount of any tax credit taken
by the parents under section 25A of the Inter-
nal Revenue Code of 1986.’’.
(b) STUDENT CONTRIBUTION FROM AVAILABLE IN-
COME.—Section 475(g)(2) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (C);
(2) by striking ‘‘$1,750’’ in subparagraph (D)
and inserting ‘‘$2,250 (or a successor amount pre-
scribed by the Secretary under section 478)’’;
(3) by striking the period at the end of sub-
paragraph (D); and
(4) by inserting after subparagraph (D) the fol-
lowing new subparagraph:
‘‘(E) the amount of any tax credit taken
by the student under section 25A of the Inter-
nal Revenue Code of 1986.’’.
SEC. 3. FAMILY CONTRIBUTION FOR INDEPENDENT STU-
DENTS WITHOUT DEPENDENTS OTHER THAN
A SPOUSE.
(a) FAMILY’S
CONTRIBUTION
FROM
AVAILABLE
INCOME.—Section 
476(b)(1)(A) 
(20 
U.S.C.
1087pp(b)(1)(A)) is amended—
(1) by striking ‘‘and’’ at the end of clause (iv);
and
(2) by inserting after clause (v) the following
new clause:
‘‘(vi) the amount of any tax credit
taken under section 25A of the Internal
Revenue Code of 1986; and’’.
(b) INCOME PROTECTION ALLOWANCES.—Section
476(b)(1)(A)(iv) is amended—
(1) by striking ‘‘allowance of—’’ and inserting
‘‘allowance of the following amount (or a successor
amount prescribed by the Secretary under section
478):’’;
(2) by striking ‘‘$3,000’’ each place it appears
in subclauses (I) and (II) and inserting ‘‘$5,500’’;
and
(3) by striking ‘‘$6,000’’ in subclause (III) and
inserting ‘‘$8,500’’.
SEC. 4. FAMILY CONTRIBUTION FOR INDEPENDENT STU-
DENTS WITH DEPENDENTS OTHER THAN A
SPOUSE.
Section 477(b)(1) (20 U.S.C. 1087qq(b)(1)) is
amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (D);
(2) by striking the period at the end of sub-
paragraph (E) and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(F) the amount of any tax credit taken
under section 25A of the Internal Revenue
Code of 1986.’’.
SEC. 5. REGULATIONS; UPDATED TABLES AND AMOUNTS.
Section 478(b) (20 U.S.C. 1087rr(b)) is amended—
(1) by striking ‘‘For each academic year’’ and
inserting the following:
‘‘(1) REVISED
TABLES.—For each academic
year’’; and
(2) by adding at the end the following new
paragraph:
‘‘(2) REVISED AMOUNTS.—For each academic
year after academic year 1997–1998, the Secretary
shall publish in the Federal Register revised income
protection allowances for the purpose of sections
475(g)(2)(D) and 476(b)(1)(A)(iv). Such revised al-
lowances shall be developed by increasing each of the
dollar amounts contained in such section by a per-
centage equal to the estimated percentage increase
in the Consumer Price Index (as determined by the
Secretary) between December 1996 and the Decem-
ber next preceding the beginning of such academic
year, and rounding the result to the nearest $10.’’.
SEC. 6. DEFINITIONS.
(a) TOTAL INCOME.—Section 480(a)(2) (20 U.S.C.
1087vv(a)(2)) is amended—
(1) by striking ‘‘individual, and’’ and inserting
‘‘individual,’’; and
(2) by inserting ‘‘, and no portion of any tax
credit taken under section 25A of the Internal Reve-
nue Code of 1986’’ before ‘‘shall be included’’.
(b) 
EXCLUDABLE
INCOME.—Section 
480(e) 
is
amended
(1) by striking ‘‘and’’ at the end of paragraph
(3);
(2) by striking the period at the end of para-
graph (4) and inserting ‘‘; and’’; and
(3) by adding after paragraph (4) the following
new paragraph:
‘‘(5) any tax credit taken under section 25A of
the Internal Revenue Code of 1986.’’.
(c) OTHER FINANCIAL ASSISTANCE.—Section 480(j)
is amended by adding at the end the following new para-
graph:
‘‘(4) Notwithstanding paragraph (1), a tax credit
taken under section 25A of the Internal Revenue Code of
1986 shall not be treated as estimated financial assistance
for purposes of section 471(3).’’.
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