I
105TH CONGRESS
2D SESSION
H. R. 4072
To amend the Internal Revenue Code of 1986 to allow a deduction for
post-secondary tuition and related expenses in lieu of the Hope and
Lifetime Learning credits.
IN THE HOUSE OF REPRESENTATIVES
JUNE 17, 1998
Mr. MALONEY of Connecticut 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 allow a
deduction for post-secondary tuition and related expenses
in lieu of the Hope and Lifetime Learning credits.
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
Family Opportunity Act of 1998’’.
SEC. 2. DEDUCTION FOR POSTSECONDARY TUITION AND
RELATED EXPENSES IN LIEU OF HOPE AND
LIFETIME LEARNING CREDIT.
(a) IN GENERAL.—Part VII of subchapter B of chap-
ter 1 of the Internal Revenue Code of 1986 (relating to
additional itemized deductions for individuals) is amended
by redesignating section 222 as section 223 and by insert-
ing after section 221 the following new section:
‘‘SEC. 222. DEDUCTION FOR POSTSECONDARY TUITION AND
RELATED EXPENSES IN LIEU OF HOPE AND
LIFETIME LEARNING CREDIT.
‘‘(a) ALLOWANCE OF DEDUCTION.—In the case of an
individual, there shall be allowed as a deduction for the
taxable year an amount equal to the qualified tuition and
related expenses paid or incurred by such individual.
‘‘(b) LIMITATION.—
‘‘(1) IN GENERAL.—The amount allowable as a
deduction under subsection (a) for a taxable year
shall not exceed the deductible limit for each eligible
student.
‘‘(2) DEDUCTIBLE
LIMIT.—For purposes of
paragraph (1), the deductible limit for a taxable
year shall be determined in accordance with the fol-
lowing table:
‘‘Taxable years beginning
in calendar year:
Deductible limit:
1999 ................................................................................................... $5,000
2000 ................................................................................................... $5,500
2001 ................................................................................................... $6,000
2002 ................................................................................................... $6,500
2003 ................................................................................................... $7,000
2004 ................................................................................................... $7,500
2005 ................................................................................................... $8,000
2006 ................................................................................................... $8,500
2007 ................................................................................................... $9,000
2008 ................................................................................................... $9,500
2009 and thereafter ...........................................................................$10,000.
‘‘(c) QUALIFIED TUITION AND RELATED EXPENSES;
ELIGIBLE STUDENT.—The terms ‘qualified tuition and re-
lated expenses’ and ‘eligible student’ shall have the same
meanings given to such terms by section 25A.
‘‘(d) APPLICABLE RULES.—For purposes of this sec-
tion, rules similar to the rules of section 25A(g) shall
apply.’’.
(b) DEDUCTION NOT A MISCELLANEOUS ITEMIZED
DEDUCTION.—Subsection (b) of section 67 of such Code
(relating to miscellaneous itemized deductions) is amended
by striking ‘‘and’’ at the end of paragraph (11), by strik-
ing the period at the end of paragraph (12) and inserting
‘‘, and’’, and by adding at the end the following new para-
graph:
‘‘(13) the deduction under section 222 (relating
to deduction for postsecondary tuition and related
expenses in lieu of Hope and Lifetime Learning
credit).’’.
(c) CONFORMING AMENDMENTS.—
(1) Subparagraph (B) of section 72(t)(7) of
such Code is amended by inserting ‘‘or 222(e)(2), as
the case may be’’ after ‘‘section 25A(g)(2)’’.
(2) Paragraph (2) of section 135(d) of such
Code is amended by inserting ‘‘or 222, as the case
may be,’’ after ‘‘section 25A’’.
(3) Paragraph (2) of section 221(e) of such
Code is amended by striking ‘‘and’’ after subpara-
graph (A), by striking the period at the end of sub-
paragraph (B) and inserting ‘‘, and’’, and by insert-
ing after subparagraph (B) the following new sub-
paragraph:
‘‘(C) the amount allowed as a deduction
under section 222.’’.
(4) Paragraph (2) of section 6213(g) of such
Code is amended—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (J) (as added by section 201(b) of
the Taxpayer Relief Act of 1997),
(B) by redesignating subparagraph (J) (as
added by section 1085(a)(3) of the Taxpayer
Relief Act of 1997) as subparagraph (K) and
by striking the period at the end of such sub-
paragraph and inserting ‘‘, and’’, and
(C) by adding at the end the following new
subparagraph:
‘‘(L) an omission of a correct TIN re-
quired under section 222(e)(1) (relating to
higher education tuition and related expenses)
to be included on a return.’’.
(d) CLERICAL AMENDMENT.—The table of sections
for part VII of subchapter B of chapter 1 of such Code
is amended by striking the last item and inserting the fol-
lowing new items:
‘‘Sec. 222. Deduction for postsecondary tuition and related ex-
penses in lieu of Hope and Lifetime Learning cred-
it.
‘‘Sec. 223. Cross reference.’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to expenses paid or incurred after
December 31, 1998, for education furnished in academic
periods beginning after such date.
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