I 
111TH CONGRESS 
1ST SESSION H. R. 1957 
To amend the Internal Revenue Code of 1986 to provide a higher education 
tuition credit in place of existing education tax incentives. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 2, 2009 
Mr. PETERS 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 higher education tuition credit in place of existing 
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 ‘‘Helping Families Af-
ford Tuition Act’’. 
SEC. 2. HIGHER EDUCATION TUITION 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 TUITION CREDIT. 
‘‘(a) 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 in an amount equal to 50 percent of so 
much of the qualified tuition and related expenses paid 
by the taxpayer during the taxable year (for education fur-
nished to the eligible student during any academic period 
beginning in such taxable year) as does not exceed 
$10,000. 
‘‘(b) LIMITATIONS.— 
‘‘(1) LIMITATION
BASED
ON
MODIFIED
AD-
JUSTED 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 zero) by the 
amount determined under subparagraph (B). 
‘‘(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— 
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‘‘(I) the taxpayer’s modified ad-
justed gross income for such taxable 
year, over 
‘‘(II) $100,000 ($200,000 in the 
case of a joint return), bears to 
‘‘(ii) $10,000 ($20,000 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. 
‘‘(2) OTHER LIMITATIONS.— 
‘‘(A) CREDIT ALLOWED ONLY FOR 5 TAX-
ABLE YEARS.—An election to have this section 
apply with respect to any eligible student may 
not be made for any taxable year if such an 
election (by the taxpayer or any other indi-
vidual) is in effect with respect to such student 
for any 5 prior taxable years. 
‘‘(B) CREDIT ALLOWED FOR YEAR ONLY IF 
INDIVIDUAL IS AT LEAST 1/2 TIME STUDENT 
FOR PORTION OF YEAR.—The credit under sub-
section (a) shall not be allowed for a taxable 
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year with respect to the qualified tuition and re-
lated expenses of an individual unless such indi-
vidual is an eligible student for at least one aca-
demic period which begins during such year. 
‘‘(C) CREDIT ALLOWED ONLY FOR FIRST 5 
YEARS OF POST SECONDARY EDUCATION.—An 
election to have this section apply with respect 
to any eligible student may not be made for any 
taxable year if the student has completed (be-
fore the beginning of such taxable year) 5 years 
of post secondary education at one or more eli-
gible educational institutions. 
‘‘(D) DENIAL
OF
CREDIT
IF
STUDENT 
CONVICTED OF A FELONY DRUG OFFENSE.— 
The credit under subsection (a) shall not be al-
lowed for qualified tuition and related expenses 
for the enrollment or attendance of a student 
for any academic period if such student has 
been convicted of a Federal or State felony of-
fense consisting of the possession or distribu-
tion of a controlled substance before the end of 
the taxable year with or within which such pe-
riod ends. 
‘‘(c) DEFINITIONS.—For purposes of this sub-
section— 
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‘‘(1) 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 
‘‘(B) is carrying at least 1⁄2 the normal 
full-time work load for the course of study the 
student is pursuing. 
‘‘(2) QUALIFIED
TUITION
AND
RELATED
EX-
PENSES.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
tuition and related expenses’ means tuition and 
fees required for the enrollment or attendance 
of an eligible student who is— 
‘‘(i) the taxpayer, 
‘‘(ii) the taxpayer’s spouse, or 
‘‘(iii) any dependent of the taxpayer 
with respect to whom the taxpayer is al-
lowed a deduction under section 151, 
at an eligible educational institution for courses 
of instruction of such individual at such institu-
tion. 
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‘‘(B) EXCEPTION FOR EDUCATION INVOLV-
ING SPORTS, ETC.—Such term does not include 
expenses with respect to any course or other 
education involving sports, games, or hobbies, 
unless such course or other education is part of 
the individual’s degree program. 
‘‘(C) 
EXCEPTION
FOR
NONACADEMIC 
FEES.—Such term does not include student ac-
tivity fees, athletic fees, insurance expenses, or 
other expenses unrelated to an individual’s aca-
demic course of instruction. 
‘‘(3) ELIGIBLE EDUCATIONAL INSTITUTION.— 
The term ‘eligible educational institution’ means an 
institution— 
‘‘(A) which is described in section 481 of 
the Higher Education Act of 1965 (20 U.S.C. 
1088), as in effect on the date of the enactment 
of the Taxpayer Relief Act of 1997, and 
‘‘(B) which is eligible to participate in a 
program under title IV of the Higher Education 
Act of 1965. 
‘‘(d) SPECIAL RULES.— 
‘‘(1) 
IDENTIFICATION
REQUIREMENT.—No 
credit shall be allowed under subsection (a) to a tax-
payer with respect to the qualified tuition and re-
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lated expenses of an individual unless the taxpayer 
includes the name and taxpayer identification num-
ber of such individual on the return of tax for the 
taxable year. 
‘‘(2) ADJUSTMENT
FOR
CERTAIN
SCHOLAR-
SHIPS, ETC.—The amount of qualified tuition and 
related expenses otherwise taken into account under 
subsection (a) with respect to an individual for an 
academic period shall be reduced (before the applica-
tion of subsections (a), (b), and (c)) by the sum of 
any amounts paid for the benefit of such individual 
which are allocable to such period as— 
‘‘(A) a qualified scholarship which is ex-
cludable from gross income under section 117, 
‘‘(B) an educational assistance allowance 
under chapter 30, 31, 32, 34, or 35 of title 38, 
United States Code, or under chapter 1606 of 
title 10, United States Code, and 
‘‘(C) a payment (other than a gift, be-
quest, devise, or inheritance within the meaning 
of section 102(a)) for such individual’s edu-
cational expenses, or attributable to such indi-
vidual’s enrollment at an eligible educational in-
stitution, which is excludable from gross income 
under any law of the United States. 
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‘‘(3) TREATMENT OF EXPENSES PAID BY DE-
PENDENT.—If a deduction under section 151 with 
respect to an individual is allowed to another tax-
payer for a taxable year beginning in the calendar 
year in which such individual’s taxable year begins— 
‘‘(A) no credit shall be allowed under sub-
section (a) to such individual for such individ-
ual’s taxable year, and 
‘‘(B) qualified tuition and related 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 qualified tuition and related expenses 
are paid by the taxpayer during a taxable year for 
an academic period which begins during the first 3 
months following 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 a deduction is allowed under any other 
provision of this chapter. 
‘‘(6) NO
CREDIT
FOR
MARRIED
INDIVIDUALS 
FILING SEPARATE RETURNS.—If the taxpayer is a 
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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 
States for purposes of this chapter by reason of an 
election under subsection (g) or (h) of section 6013. 
‘‘(e) 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 amount which was taken into account in deter-
mining the amount of such credit.’’. 
(b) REPEAL OF DEDUCTION FOR QUALIFIED TUI-
TION AND RELATED EXPENSES.— 
(1) IN GENERAL.—Part VII of subchapter B of 
chapter 1 of the Internal Revenue Code of 1986 is 
amended by striking section 222 (relating to quali-
fied tuition and related expenses). 
(2) CLERICAL AMENDMENT.—The table of sec-
tion for part VII of subchapter B of chapter 1 of 
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such Code is amended by striking the item relating 
to section 222. 
(c) CONFORMING AMENDMENTS.— 
(1) Section 62(a) of such Code is amended by 
striking paragraph (18). 
(2) Subparagraph (B) of section 72(t)(7) of 
such 
Code 
is 
amended 
by 
striking 
‘‘section 
25A(g)(2)’’ and inserting ‘‘section 25A(d)(2)’’. 
(3) Section 221(d) of such Code is amended— 
(A) by striking ‘‘section 25A(g)(2)’’ in 
paragraph 
(2)(B) 
and 
inserting 
‘‘section 
25A(d)(2)’’, 
(B) by striking ‘‘section 25A(f)(2)’’ in 
paragraph 
(2)(B) 
and 
inserting 
‘‘section 
25A(c)(3)’’, and 
(C) by striking ‘‘section 25A(b)(3)’’ in 
paragraph 
(3) 
and 
inserting 
‘‘section 
25A(c)(1)’’. 
(4) Section 529 of such Code is amended— 
(A) by striking ‘‘section 25A(g)(2)’’ in sub-
clause (I) of subsection (c)(3)(B)(v) and insert-
ing ‘‘section 25A(d)(2)’’, and 
(B) by striking ‘‘section 25A(b)(3)’’ in 
clause (i) of subsection (e)(3)(B) and inserting 
‘‘section 25A(c)(1)’’. 
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