I 
114TH CONGRESS 
2D SESSION 
H. R. 5381 
To amend the Internal Revenue Code of 1986 to provide a tax credit for 
certain expenses relating to applying to college. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 3, 2016 
Mr. ISRAEL 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 provide 
a tax credit for certain expenses relating to applying 
to college. 
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 Preparation 
Tax Credit Act of 2016’’. 
SEC. 2. TAX CREDIT FOR COLLEGE PREPARATION EX-
PENSES. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
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1986 is amended by inserting after section 25D the fol-
lowing new section: 
‘‘SEC. 25E. CREDIT FOR COLLEGE PREPARATION EX-
PENSES. 
‘‘(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 such taxable year an amount 
equal to so much of the qualified college preparation ex-
penses paid or incurred by the taxpayer during such tax-
able year as does not exceed $500. 
‘‘(b) 
QUALIFIED
COLLEGE
PREPARATION
EX-
PENSES.—For purposes of this section, the term ‘qualified 
college preparation expenses’ means amounts paid or in-
curred for— 
‘‘(1) fees required for taking any Advanced 
Placement or International Baccalaureate exam, 
‘‘(2) fees required for taking the SAT, the 
ACT, or any SAT Subject Test, 
‘‘(3) expenses related to preparation (including 
tutorial services and preparation classes) for any 
exam described in paragraph (1) or (2), 
‘‘(4) fees and expenses related to applications 
for admission to pursue a postsecondary course of 
study at an eligible educational institution (as de-
fined in section 25A(f)(2)), and 
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‘‘(5) such other similar expenses and fees as the 
Secretary may by regulation prescribe. 
‘‘(c) ELECTION.—No credit shall be allowed under 
subsection (a) with respect to any expenses paid or in-
curred during the taxable year with respect to any indi-
vidual for whom an election is not in effect under this sec-
tion for such taxable year. 
‘‘(d) CREDIT ALLOWED ONLY
FOR 3 TAXABLE 
YEARS.—An election under this section with respect to 
any individual may not be made for any taxable year if 
such an election is in effect with respect to such individual 
for any 3 prior taxable years. 
‘‘(e) TREATMENT OF EXPENSES PAID BY DEPEND-
ENT.—If a deduction under section 151 with respect to 
an individual is allowed to another taxpayer for a taxable 
year beginning in the calendar year in which such individ-
ual’s taxable year begins— 
‘‘(1) no credit shall be allowed under subsection 
(a) to such individual for such individual’s taxable 
year, and 
‘‘(2) qualified college preparation 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.’’. 
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(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by in-
serting after the item relating to section 25D the following 
new item: 
‘‘Sec. 25E. Credit for college preparation expenses.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
Æ 
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