I
105TH CONGRESS
1ST SESSION
H. R. 318
To amend the Internal Revenue Code of 1986 to provide a Federal income
tax credit for tuition.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 7, 1997
Mr. SOLOMON 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 Federal income tax credit for tuition.
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 ‘‘Tuition Tax Credit
Act of 1997’’.
SEC. 2. TAX CREDIT FOR TUITION.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 23 the following new
section:
‘‘SEC. 24. TUITION TAX CREDIT.
‘‘(a) GENERAL RULE.—In the case of an individual,
there shall be allowed as a credit against the tax imposed
by this chapter for the taxable year, the amount, deter-
mined under subsection (b), of the educational expenses
paid by him during the taxable year to one or more eligible
educational institutions for himself, his spouse, or any of
his dependents (as defined in section 152).
‘‘(b) LIMITATIONS.—
‘‘(1) AMOUNT
PER
INDIVIDUAL.—The credit
under subsection (a) for the educational expenses of
any individual paid in any taxable year shall be
equal to so much of such expenses paid with respect
to such individual as does not exceed $1,000.
‘‘(2) PRORATION
OF
CREDIT
WHERE
MORE
THAN
ONE
TAXPAYER
PAYS
EXPENSES.—If edu-
cational expenses of an individual are paid by more
than one taxpayer during any calendar year, the
credit allowable to each such taxpayer under sub-
section (a) for any taxable year beginning in such
calendar year shall be the same portion of the credit
determined under paragraph (1) for such calendar
year which the amount of educational expenses of
such individual paid by the taxpayer during such
calendar year is of the total amount of educational
expenses of such individual paid during such cal-
endar year by all such taxpayers.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) 
EDUCATIONAL
EXPENSES.—The 
term
‘educational expenses’ means amounts paid for—
‘‘(A) tuition and fees required for the en-
rollment or attendance of a student at an eligi-
ble educational institution, and
‘‘(B) fees, books, supplies, and equipment
required for courses of instruction at an eligible
educational institution.
Such term does not include any amount paid, di-
rectly or indirectly, for meals, lodging, or similar
personal, living, or family expenses. In the event an
amount paid for tuition or fees includes an amount
for meals, lodging, or similar expenses which is not
separately stated, the portion of such amount which
is attributable to meals, lodging, or similar expenses
shall be determined under regulations prescribed by
the Secretary.
‘‘(2) ELIGIBLE EDUCATIONAL INSTITUTION.—
The term ‘eligible educational institution’ means—
‘‘(A) an institution of higher education,
‘‘(B) a vocational school,
‘‘(C) a secondary school, or
‘‘(D) an elementary school.
‘‘(3) INSTITUTION OF HIGHER EDUCATION.—
The term ‘institution of higher education’ means the
institutions described in section 1201(a) or 481(a)
of the Higher Education Act of 1965.
‘‘(4) VOCATIONAL
SCHOOL.—The term ‘voca-
tional school’ means an area vocational education
school as defined in section 521(3) of the Carl D.
Perkins Vocational Education Act.
‘‘(5) 
ELEMENTARY
AND
SECONDARY
SCHOOLS.—The terms ‘elementary school’ and ‘sec-
ondary school’ mean, respectively, any elementary or
secondary school (as defined in section 14101 of the
Elementary and Secondary Education Act of 1965)
which is privately operated but only if it is—
‘‘(A) accredited or approved under State
law (or, in the case of school in a State which
has no procedure for the accreditation or ap-
proval of privately operated schools, which
meets the requirements of State law relating to
compulsory school attendance), and
‘‘(B) exempt from taxation under section
501(a) as an organization described in section
501(c)(3).
The terms ‘elementary school’ and ‘secondary school’
include facilities which offer education for individ-
uals who are physically or mentally handicapped as
a substitute for public elementary or secondary edu-
cation.
‘‘(d) SPECIAL RULES.—
‘‘(1) ADJUSTMENT
FOR
CERTAIN
SCHOLAR-
SHIPS
AND
VETERANS
BENEFITS, 
ETC..—The
amounts otherwise taken into account under sub-
section (a) as educational expenses of any individual
during any period shall be reduced (before the appli-
cation of subsection (b)) under rules similar to the
rules of section 135(d)(1).
‘‘(2) ELIGIBLE
COURSES.—Amounts paid for
educational expenses of any individual shall be taken
into account under subsection (a) only to the extent
such expenses—
‘‘(A) are attributable to courses of instruc-
tion offered by an elementary or secondary
school, or
‘‘(B) are attributable to courses of instruc-
tion for which credit is allowed toward a bacca-
laureate degree by an institution of higher edu-
cation or toward a certificate of required course
work at a vocational school and are not attrib-
utable to any graduate program of such individ-
ual.
‘‘(3) INDIVIDUAL
MUST
BE
AT
LEAST
HALF-
TIME STUDENT.—No credit shall be allowed under
subsection (a) for amounts paid during the taxable
year for educational expenses with respect to any in-
dividual unless that individual, during any 4 cal-
endar months during the calendar year in which the
taxable year of the taxpayer begins, is at least a
half-time student at an eligible education institution.
‘‘(4) SPOUSE.—No credit shall be allowed under
subsection (a) for amounts paid during the taxable
year for educational expenses for the spouse of the
taxpayer unless—
‘‘(A) the taxpayer is entitled to an exemp-
tion for his spouse under section 151(b) for the
taxable year, or
‘‘(B) the taxpayer files a joint return with
his spouse for the taxable year.
‘‘(e) DISALLOWANCE
OF EXPENSES
AS DEDUC-
TION.—No deduction shall be allowed under section 162
(relating to trade or business expenses) for any edu-
cational expense which (after the application of subsection
(b)) is taken into account in determining the amount of
any credit allowed under subsection (a). The preceding
sentence shall not apply to the educational expenses of any
taxpayer who, under regulations prescribed by the Sec-
retary, elects not to apply the provisions of this section
with respect to such expenses for the taxable year.
‘‘(f) REGULATIONS.—The Secretary shall prescribe
such regulations as may be necessary to carry out the pro-
visions of this section.’’
(b) CLERICAL AMENDMENT.—The table of sections
for such subpart A is amended by inserting after the item
relating to section 23 the following new item:
‘‘Sec. 24. Expenses of higher education.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1997.
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