I 
110TH CONGRESS 
1ST SESSION H. R. 2458 
To amend the Internal Revenue Code of 1986 to consolidate the current 
education tax incentives into one credit against income tax for higher 
education expenses, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MAY 23, 2007 
Mr. EMANUEL (for himself, Mr. CAMP of Michigan, Mr. LEWIS of Georgia, 
Mr. BLUMENAUER, Mr. RAMSTAD, Mr. BISHOP of New York, Mr. 
MCDERMOTT, Mr. WELLER of Illinois, Mr. LARSON of Connecticut, and 
Mr. COHEN) introduced the following bill; which was referred to the Com-
mittee on Ways and Means 
A BILL 
To amend the Internal Revenue Code of 1986 to consolidate 
the current education tax incentives into one credit 
against income tax for higher education expenses, and 
for other purposes. 
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 ‘‘Universal Higher Edu-
cation and Lifetime Learning Act of 2007’’. 
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SEC. 2. CONSOLIDATION OF EDUCATION TAX INCENTIVES 
INTO HIGHER EDUCATION TAX 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: 
‘‘SEC. 25A. HIGHER EDUCATION TAX 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 an amount equal to the sum of— 
‘‘(1) 50 percent of so much of the higher edu-
cation expenses paid by the taxpayer during the tax-
able year (with respect to attendance of the eligible 
student at an eligible educational institution during 
any academic period beginning in such taxable year) 
as does not exceed $3,000, and 
‘‘(2) 30 percent of so much of such expenses as 
exceeds $3,000, but does not exceed $8,000. 
‘‘(b) LIMITATIONS.— 
‘‘(1) HIGHER
EDUCATION
EXPENSE
LIMITA-
TION.—The amount of higher education expenses 
taken into account under subsection (a) with respect 
to an individual for an academic period shall not ex-
ceed the individual’s cost of attendance (as defined 
in section 472 of the Higher Education Act of 1965, 
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as in effect on the date of the enactment of this sec-
tion) for such period at the eligible educational insti-
tution with respect to which such higher education 
expenses were paid. 
‘‘(2) 
LIFETIME
CREDIT
LIMITATION.—The 
amount of the credit allowed under subsection (a) 
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 LIMITATION BASED ON MODIFIED 
ADJUSTED 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) 
the 
applicable 
amount 
under subparagraph (D), bears to 
‘‘(ii) $30,000 ($60,000 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. 
‘‘(D) APPLICABLE AMOUNT.—The applica-
ble amount under this subparagraph is— 
‘‘(i) in the case of a joint return, 200 
percent of the dollar amount in effect 
under clause (ii) for the taxable year, and 
‘‘(ii) in any other case, $50,000. 
‘‘(4) LIMITATION
BASED
ON
AMOUNT
OF 
TAX.—In the case of a taxable year to which section 
26(a)(2) does not apply, the credit allowed under 
subsection (a) for the taxable year shall not exceed 
the excess of— 
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