I 
113TH CONGRESS 
1ST SESSION H. R. 3437 
To amend the Internal Revenue Code of 1986 to consolidate, with modifica-
tions, the Hope Scholarship Credit, the Lifetime Learning Credit, and 
the American Opportunity Tax Credit, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
OCTOBER 30, 2013 
Ms. SCHWARTZ introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on Edu-
cation and the Workforce, for a period to be subsequently determined by 
the Speaker, in each case for consideration of such provisions as fall with-
in the jurisdiction of the committee concerned 
A BILL 
To amend the Internal Revenue Code of 1986 to consolidate, 
with modifications, the Hope Scholarship Credit, the 
Lifetime Learning Credit, and the American Opportunity 
Tax Credit, 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 ‘‘College Affordability 
Act of 2013’’. 
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SEC. 2. CONSOLIDATION OF EDUCATION CREDITS WITH 
MODIFICATIONS. 
(a) IN GENERAL.—Section 25A of the Internal Rev-
enue Code of 1986 is amended to read as follows: 
‘‘SEC. 25A. AMERICAN OPPORTUNITY TAX CREDIT. 
‘‘(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 the taxable year the amount 
equal to 100 percent of so much of the qualified tuition 
and related expenses paid by the taxpayer during the tax-
able year (for education furnished to the eligible student 
during any academic period beginning in such taxable 
year) as does not exceed $2,500. 
‘‘(b) LIFETIME LIMITATION ON AGGREGATE CRED-
IT.—In the case of qualified tuition and related expenses 
with respect to any individual, the aggregate amount of 
the credits claimed under this section for all taxable years 
shall not exceed $10,000, determined without regard to 
whether— 
‘‘(1) such credits are claimed on the return of 
tax filed by the individual or by another taxpayer, or 
‘‘(2) such expenses are treated as paid by the 
individual or by another taxpayer. 
‘‘(c) LIMITATION BASED ON MODIFIED ADJUSTED 
GROSS INCOME.— 
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‘‘(1) IN GENERAL.—The amount which would 
(but for this subsection) be taken into account under 
this section for the taxable year shall be reduced 
(but not below zero) by the amount determined 
under paragraph (2). 
‘‘(2) AMOUNT
OF
REDUCTION.—The amount 
determined under this paragraph is the amount 
which bears the same ratio to the amount which 
would be so taken into account as— 
‘‘(A) the excess of— 
‘‘(i) the taxpayer’s modified adjusted 
gross income for such taxable year, over 
‘‘(ii) $80,000 (twice such amount in 
the case of a joint return), bears to 
‘‘(B) $10,000 ($20,000 in the case of a 
joint return). 
‘‘(3) MODIFIED
ADJUSTED
GROSS
INCOME.— 
For purposes of this subsection, the term ‘modified 
adjusted gross income’ means the adjusted gross in-
come of the taxpayer for the taxable year increased 
by any amount excluded from gross income under 
section 911, 931, or 933. 
‘‘(d) OTHER LIMITATIONS.— 
‘‘(1) CREDIT ALLOWED FOR YEAR ONLY IF IN-
DIVIDUAL IS AT LEAST 1⁄2 TIME STUDENT FOR POR-
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TION OF YEAR.—The credit under this section shall 
not be allowed for a taxable year with respect to the 
qualified tuition and related expenses of an indi-
vidual unless such individual is an eligible student 
for at least one academic period which begins during 
such year. 
‘‘(2) DENIAL
OF
CREDIT
IF
STUDENT
CON-
VICTED OF A FELONY DRUG OFFENSE.—The credit 
under subsection (a) shall not be allowed for quali-
fied 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 offense consisting of the possession or 
distribution of a controlled substance before the end 
of the taxable year with or within which such period 
ends. 
‘‘(e) DEFINITIONS.—For purposes of this section: 
‘‘(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 August 
5, 1997, and 
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‘‘(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, 
fees, and course materials required for the en-
rollment or attendance of— 
‘‘(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. 
‘‘(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-
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