I 
111TH CONGRESS 
1ST SESSION 
H. R. 518 
To amend the Internal Revenue Code of 1986 to consolidate the current 
education tax incentives as one credit against income tax for qualified 
tuition and related expenses. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 14, 2009 
Mr. ISRAEL (for himself, Mr. RODRIGUEZ, Mr. RYAN of Ohio, Mr. WEINER, 
Ms. BEAN, and Ms. SHEA-PORTER) 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 consolidate 
the current education tax incentives as one credit against 
income tax for qualified tuition and related expenses. 
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 ‘‘Middle Class College 
Tuition Tax Credit Expansion Act of 2009’’. 
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SEC. 2. QUALIFIED TUITION AND RELATED EXPENSES 
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. QUALIFIED TUITION AND RELATED EXPENSES 
CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of any 
eligible individual for whom an election is in effect under 
this section, there shall be allowed as a credit against the 
tax imposed by this chapter for the taxable year 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 furnished to the eligible 
individual during any academic period beginning in such 
taxable year) as does not exceed $10,000. 
‘‘(b) LIMITATIONS.— 
‘‘(1) MODIFIED ADJUSTED GROSS INCOME LIMI-
TATION.— 
‘‘(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 paragraph (2). 
‘‘(B) 
AMOUNT
OF
REDUCTION.—The 
amount determined under this paragraph is the 
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amount which bears the same ratio to the 
amount which would be so taken into account 
as— 
‘‘(i) the excess of— 
‘‘(I) the taxpayer’s modified ad-
justed gross income for such taxable 
year, over 
‘‘(II) 
the 
applicable 
amount 
under paragraph (4), bears to 
‘‘(ii) $5,000 ($10,000 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 subparagraph (B) for the taxable 
year, and 
‘‘(ii) in any other case, $100,000. 
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‘‘(2) CREDIT ALLOWED FOR ONLY 4 TAXABLE 
YEARS.—An election to have this section apply with 
respect to any eligible individual may not be made 
for any taxable year if such an election (by the tax-
payer or any other individual) is in effect with re-
spect to such individual for any 4 prior taxable 
years. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE INDIVIDUAL.—The term ‘eligible 
individual’ means any individual described in para-
graph (2). 
‘‘(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 — 
‘‘(i) 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 in-
stitution. 
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‘‘(B) BOOKS.—Such term shall include 
books required for such individual’s academic 
courses of instruction at the eligible educational 
institution. 
‘‘(C) 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. 
‘‘(D) 
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.— 
Ther term ‘eligible educational institution’ means an 
institution— 
‘‘(A) which is described in section 481 of 
the Higher Education Act of 1965, 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. 
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‘‘(d) SPECIAL RULES.— 
‘‘(1) 
IDENTIFICATION
REQUIREMENT.—No 
credit shall be allowed under subsection (a) to a tax-
payer with respect to an eligible student unless the 
taxpayer includes the name and taxpayer identifica-
tion number of such student on the return of tax for 
the taxable year. 
‘‘(2) ADJUSTMENT
FOR
CERTAIN
SCHOLAR-
SHIPS.—The amount of qualified tuition and related 
expenses otherwise taken into account under sub-
section (a) with respect to an individual for an aca-
demic period shall be reduced (before the application 
of subsections (a) and (b)) 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 student’s edu-
cational expenses, or attributable to such indi-
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