I 
108TH CONGRESS 
1ST SESSION H. R. 3251
To amend the Internal Revenue Code of 1986 to increase and enhance 
the Hope Scholarship Credit and to repeal the Lifetime Learning Credit. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 7, 2003
Mr. MCDERMOTT (for himself, Mr. GEORGE MILLER of California, Mr. MAT-
SUI, and Mr. KILDEE) 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 increase 
and enhance the Hope Scholarship Credit and to repeal 
the Lifetime Learning Credit.
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 ‘‘Personal Access to 
Continued Education Act of 2003’’. 
SEC. 2. HOPE SCHOLARSHIP CREDIT MADE REFUNDABLE; 
REPEAL OF LIFETIME LEARNING CREDIT. 
(a) HOPE CREDIT TO BE REFUNDABLE.—Section 
25A of the Internal Revenue Code of 1986 (relating to
Hope and Lifetime Learning credits) is hereby moved to 
subpart C of part IV of subchapter A of chapter 1 of such 
Code (relating to refundable credits) and inserted after 
section 35. 
(b) REPEAL OF LIFETIME LEARNING CREDIT.—Sub-
section (a) of section 36 of such Code (as moved by sub-
section (a) and redesignated by subsection (c)) is amended 
by striking ‘‘the sum of—’’ and all that follows and insert-
ing ‘‘the Hope Scholarship Credit.’’. 
(c) TECHNICAL AMENDMENTS.—
(1) Section 36 of such Code is redesignated as 
section 37. 
(2) Section 25A of such Code (as moved by 
subsection (a)) is redesignated as section 36. 
(3) Section 36 of such Code (as redesignated by 
paragraph (2)) is amended as follows: 
(A) Such section is amended by striking 
subsection (c) and redesignating subsections (d) 
through (i) as subsections (c) through (h), re-
spectively. 
(B) Subsection (f)(2)(A) of such section 
(as amended by subparagraph (A)) is amended 
by striking ‘‘(b), (c), and (d)’’ and inserting 
‘‘(b) and (c)’’.
(C) Subsection (g)(2)(A) of such section 
(as amended by subparagraph (A)) is amended 
by striking ‘‘subsection (d)(2)’’ and inserting 
‘‘subsection (c)(2)’’. 
(4) Paragraph (1) of section 36(a) of such Code 
(as redesignated by paragraph (2)) is amended by 
striking ‘‘this chapter’’ and inserting ‘‘this subtitle’’. 
(5) Subparagraph (B) of section 72(t)(7) of 
such 
Code 
is 
amended 
by 
striking 
‘‘section 
25A(g)(2)’’ and inserting ‘‘section 36(f)(2)’’. 
(6) Subparagraph (A) of section 135(d)(2) of 
such Code is amended by striking ‘‘section 25A’’ and 
inserting ‘‘section 36’’. 
(7) Section 221(e) of such Code is amended—
(A) in paragraph (2)(B), by striking ‘‘sec-
tion 
25A(g)(2)’’ 
and 
inserting 
‘‘section 
36(f)(2)’’ and by striking ‘‘section 25A(f)(2)’’ 
and inserting ‘‘section 36(e)(2)’’, and 
(B) in paragraph (3), by striking ‘‘section 
25A(b)(3)’’ and inserting ‘‘section 36(b)(3)’’. 
(8) Section 222 of such Code is amended—
(A) in subsection (c)(2)(A) by striking 
‘‘section 25A’’ and inserting ‘‘36’’, and 
(B) in subsection (d)(1)—
(i) by striking ‘‘section 25A(f)’’ and 
inserting ‘‘section 36(e)’’, and 
(ii) by striking ‘‘section 25A(g)(2)’’ 
and inserting ‘‘36(f)(2)’’. 
(9) Section 529 of such Code is amended—
(A) in subsection (c)(3)(B)(v)(I) by strik-
ing ‘‘section 25A(g)(2)’’ and inserting ‘‘section 
36(f)(2)’’, 
(B) in subsection (c)(3)(B)(v)(II) by strik-
ing ‘‘section 25A’’ and inserting ‘‘section 36’’, 
and 
(C) in subsection (e)(3)(B)(i) by striking 
‘‘section 25A(b)(3)’’ and inserting ‘‘section 
36(b)(3)’’. 
(10) Section 530(d) of such Code is amended—
(A) in paragraph (2)(C)(i)(I) by striking 
‘‘section 25A(g)(2)’’ and inserting ‘‘section 
36(f)(2)’’, 
(B) in paragraph (2)(C)(i)(II) by striking 
‘‘section 25A’’ and inserting ‘‘section 36’’, and 
(C) in paragraph (4)(B)(iii) by striking 
‘‘section 25A(g)(2)’’ and inserting ‘‘section 
36(f)(2)’’.
(11) Subsection (e) of section 6050S of such 
Code is amended by striking ‘‘section 25A (without
regard to subsection (g)(2) thereof)’’ and inserting 
‘‘section 36 (without regard to subsection (f)(2) 
thereof)’’. 
(12) Subparagraph (J) of section 6213(g)(2) of 
such 
Code 
is 
amended 
by 
striking 
‘‘section 
25A(g)(1)’’ and inserting ‘‘section 36(f)(1)’’. 
(13) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by inserting ‘‘or 
36’’ after ‘‘section 35’’. 
(14) The heading for section 36 of such Code 
is amended to read as follows: 
‘‘SEC. 36. HOPE SCHOLARSHIP CREDIT.’’. 
(15) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by striking the item 
relating to section 36 and inserting the following:
‘‘Sec. 36. Hope and Lifetime Learning credits. 
‘‘Sec. 37. Overpayments of tax.’’
(16) The table of sections for subpart A of such 
part IV is amended by striking the item relating to 
section 25A. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2004.
SEC. 3. EXPANSION OF HOPE SCHOLARSHIP CREDIT. 
(a) ELIGIBLE STUDENT.—Paragraph (3) of section 
36(b) of the Internal Revenue Code of 1986 (as amended 
by section 2) is amended to read as follows: 
‘‘(3) ELIGIBLE
STUDENT.—For purposes of 
this section— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term ‘eligible student’ 
means, with respect to any academic period, a 
student who 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 this section. 
‘‘(B) SPECIAL
RULE
FOR
JOB
SKILLS 
COURSES.—In the case of any course of instruc-
tion at an eligible educational institution to ac-
quire or improve job skills of the individual, 
such term means the individual.’’. 
(b) REPEAL OF LIMITATIONS RELATING TO CREDIT 
ALLOWED ONLY FOR FIRST 2 YEARS OF POSTSECONDARY 
EDUCATION
AND
CONVICTIONS
FOR
CERTAIN
OF-
FENSES.—Paragraph (2) of section 36(b) of such Code 
(as amended by section 2) is amended by striking subpara-
graphs (C) and (D). 
(c) INCREASE IN CREDIT AMOUNT.—
(1) IN
GENERAL.—Paragraph (1) of section 
36(b) of such Code (as amended by section 2) is 
amended—
(A) in subparagraph (A) by striking 
‘‘$1,000’’ and inserting ‘‘$1,500’’, and 
(B) in subparagraph (B) by striking ‘‘ap-
plicable limit’’ and inserting ‘‘$2,500’’. 
(2) INFLATION
ADJUSTMENT.—Subparagraph 
(A) of section 36(h)(1) of such Code (as amended by 
section 2) is amended—
(A) by striking ‘‘2001’’ and inserting 
‘‘2005’’, and 
(B) by striking ‘‘$1,000’’ and inserting 
‘‘dollar’’. 
(d) HOPE SCHOLARSHIP CREDIT NOT REDUCED BY 
FEDERAL PELL GRANTS
AND SUPPLEMENTAL EDU-
CATIONAL OPPORTUNITY GRANTS.—Subsection (f) of sec-
tion 36 of such Code (as amended by section 2) is amend-
ed by adding at the end the following new paragraph: 
‘‘(8) PELL AND SEOG GRANTS.—For purposes 
of the Hope Scholarship Credit, paragraph (2) shall 
not apply to amounts paid for an individual as a 
Federal Pell Grant or a Federal supplemental edu-
cational opportunity grant under subparts 1 and 3, 
respectively, of part A of title IV of the Higher Edu-