I 
111TH CONGRESS 
2D SESSION 
H. R. 5078 
To amend the Internal Revenue Code of 1986 to expand incentives for 
education. 
IN THE HOUSE OF REPRESENTATIVES 
APRIL 20, 2010 
Mr. HIGGINS (for himself, Mrs. MCCARTHY of New York, Mr. PLATTS, and 
Mr. ROSKAM) 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 expand 
incentives for education. 
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 ‘‘Higher Education Af-
fordability and Equity Act of 2010’’. 
SEC. 2. EXPANSION OF DEDUCTION FOR INTEREST ON EDU-
CATION LOANS. 
(a) REPEAL OF DOLLAR LIMITATION; INCREASE IN 
PHASEOUT BEGINNING POINT.—Subsection (b) of section 
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221 of the Internal Revenue Code of 1986 (relating to 
maximum deduction) is amended to read as follows: 
‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED 
GROSS INCOME.— 
‘‘(1) IN GENERAL.—The amount which would 
(but for this subsection) be allowable as a deduction 
under this section 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) $100,000 ($200,000 in the case 
of a joint return), bears to 
‘‘(B) $15,000 ($30,000 in the case of a 
joint return). 
‘‘(3) MODIFIED
ADJUSTED
GROSS
INCOME.— 
The term ‘modified adjusted gross income’ means 
adjusted gross income determined— 
‘‘(A) without regard to this section and 
sections 199, 222, 911, 931, and 933, and 
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‘‘(B) after application of sections 86, 135, 
137, 219, and 469.’’. 
(b) CONFORMING AMENDMENT.—Section 221(f)(1) 
of such Code is amended to read as follows: 
‘‘(1) IN GENERAL.—In the case of a taxable 
year beginning after 2010, the $100,000 and 
$200,000 amounts in subsection (b) shall each be in-
creased by an amount equal to— 
‘‘(A) such dollar amount, multiplied by 
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar 
year in which the taxable year begins, deter-
mined by substituting ‘calendar year 2009’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2009. 
SEC. 3. EDUCATION SAVINGS ACCOUNTS. 
(a) INCREASE IN ALLOWABLE CONTRIBUTIONS.— 
(1) IN
GENERAL.—Clause (iii) of section 
530(b)(1)(A) of the Internal Revenue Code of 1986 
is amended by striking ‘‘$2,000’’ and inserting 
‘‘$5,000’’. 
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