I
105TH CONGRESS
1ST SESSION
H. R. 1774
To amend the Internal Revenue Code of 1986 to provide for a deduction
for qualified higher education expenses.
IN THE HOUSE OF REPRESENTATIVES
JUNE 3, 1997
Mr. WEYGAND 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
for a deduction for qualified 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 ‘‘Families Educational
Opportunity Act of 1997’’.
SEC. 2. DEDUCTION FOR QUALIFIED HIGHER EDUCATION
EXPENSES.
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
additional itemized deductions for individuals) is amended
the adjusted gross income of the taxpayer for
the taxable year determined—
‘‘(i) without regard to this section and
sections 911, 931, and 933, and
‘‘(ii) after the application of sections
86, 135, 219 and 469.
For purposes of sections 86, 135, 219, and
469, adjusted gross income shall be determined
without regard to the deduction allowed under
this section.
‘‘(C) INFLATION ADJUSTMENTS.—
‘‘(i) IN GENERAL.—In the case of a
taxable year beginning after 1998, the
$40,000 and $60,000 amounts described in
subparagraph (A) shall each be increased
by an amount equal to—
‘‘(I) such dollar amount, multi-
plied by
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3)
for the calendar year in which the tax-
able year begins, determined by sub-
stituting ‘calendar year 1997’ for ‘cal-
endar year 1992’ in subparagraph (B)
thereof.
‘‘(ii) ROUNDING.—If any amount as
adjusted under clause (i) is not a multiple
of $1,000, such amount shall be rounded
to the next lowest multiple of $1,000.
‘‘(c) QUALIFIED HIGHER EDUCATION EXPENSES.—
For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified higher
education expenses’ means tuition and fees charged
by an educational institution and required for the
enrollment or attendance of—
‘‘(A) the taxpayer,
‘‘(B) the taxpayer’s spouse, or
‘‘(C) any child of the taxpayer (within the
meaning of section 151(c)(3)), or any individual
for whom the taxpayer is the legal guardian,
as an eligible student at an eligible educational insti-
tution (as defined in section 135(c)(3)) on a full-
time basis.
‘‘(2) EXCEPTION
FOR
EDUCATION
INVOLVING
SPORTS, ETC.—Such term does not include expenses
with respect to any course or other education involv-
ing sports, games, or hobbies, unless such expenses
are part of a degree program.
‘‘(d) SPECIAL RULES.—
‘‘(1) NO DOUBLE BENEFIT.—
‘‘(A) IN GENERAL.—No deduction shall be
allowed under subsection (a) for qualified high-
er education expenses with respect to which a
deduction is allowable to the taxpayer under
any other provision of this chapter unless the
taxpayer irrevocably waives his right to the de-
duction of such expenses under such other pro-
vision.
‘‘(B) DEPENDENTS.—No deduction shall
be allowed under subsection (a) to any individ-
ual with respect to whom a deduction under
section 151 is allowable to another taxpayer for
a taxable year beginning in the calendar year in
which such individual’s taxable year begins.
‘‘(C) SAVINGS BOND EXCLUSION.—A de-
duction shall be allowed under subsection (a)
for qualified higher education expenses only to
the extent the amount of such expenses exceeds
the amount excludable under section 135 for
the taxable year.
‘‘(2) LIMITATION ON TAXABLE YEAR OF DE-
DUCTION.—A deduction shall be allowed under sub-
section (a) for any taxable year only to the extent
the qualified higher education expenses are in con-
nection with—
‘‘(A) attendance during the taxable year,
or
‘‘(B) an academic term beginning during
such taxable year or during the 1st 3 months
of the next taxable year.’’
(b) DEDUCTION
ALLOWED
WITHOUT
ITEMIZA-
TION.—Section 62(a) is amended by inserting after para-
graph (16) the following new paragraph:
‘‘(17) QUALIFIED
HIGHER
EDUCATION
EX-
PENSES.—The deduction allowed by section 221.’’
(c) CLERICAL AMENDMENT.—The table of sections
for part VII of subchapter B of chapter 1 of such Code
is amended by striking the item relating to section 221
and inserting:
‘‘Sec. 221. Higher education expenses.
‘‘Sec. 222. Cross reference.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to payments made after December
31, 1997.
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