I
104TH CONGRESS
1ST SESSION
H. R. 2543
To amend the Internal Revenue Code of 1986 to allow a deduction for
tuition and fees for undergraduate and postsecondary vocational education.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 26, 1995
Mr. CHRYSLER 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 tuition and fees for undergraduate and
postsecondary vocational 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 ‘‘Tuition Tax Deduction
Act of 1995’’.
SEC. 2. DEDUCTION FOR TUITION AND FEES FOR UNDER-
GRADUATE 
AND 
POSTSECONDARY 
VOCA-
TIONAL EDUCATION.
(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 220 as section 221 and by insert-
ing after section 219 the following new section:
‘‘SEC. 220. TUITION AND FEES FOR UNDERGRADUATE AND
POSTSECONDARY VOCATIONAL EDUCATION.
‘‘(a) GENERAL RULE.—In the case of an individual,
there shall be allowed as a deduction an amount equal to
the qualified educational expenses paid 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) LIMITATION.—The aggregate payments during
the taxable year for the qualified educational expenses of
an individual which may be taken into account under sub-
section (a) shall not exceed $5,000.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED
EDUCATIONAL
EXPENSES.—
The term ‘qualified educational expenses’ means
amounts paid for tuition and fees required for the
enrollment or attendance of a student at an eligible
educational institution. 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 attrib-
utable to meals, lodging, or similar expenses shall be
determined under regulations prescribed by the Sec-
retary.
‘‘(2) ELIGIBLE EDUCATIONAL INSTITUTION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the term ‘eligible educational
institution’ has the meaning given to such term
by section 135(c)(3).
‘‘(B) INSTITUTIONS WITH EXCESSIVE TUI-
TION
INCREASES
NOT
ELIGIBLE
INSTITU-
TIONS.—An institution shall not be treated as
an eligible educational institution with respect
to any academic year unless such institution
certifies to the Secretary (before the most re-
cent July 1 preceding such academic year) that
the percentage increase in tuition for such aca-
demic year will not exceed the applicable per-
centage increase in the cost-of-living.
‘‘(C) DEFINITIONS.—For purposes of sub-
paragraph (B)—
‘‘(i) PERCENTAGE INCREASE IN TUI-
TION.—The percentage increase in tuition
for an academic year is the percentage (if
any) by which the tuition and fees required
for the enrollment or attendance of a stu-
dent at such institution for such academic
year exceed such tuition and fees for the
preceding academic year.
‘‘(ii) APPLICABLE
PERCENTAGE
IN-
CREASE IN COST-OF-LIVING.—The applica-
ble percentage increase in the cost-of-living
with respect to any academic year is the
percentage (if any) by which the CPI for
the last calendar year ending before the
beginning of such academic year exceeds
the CPI for the calendar year preceding
such calendar year.
‘‘(iii) CPI FOR
CALENDAR
YEAR.—
The CPI for any calendar year is the aver-
age of the Consumer Price Index (as de-
fined in section 1(f)(5)) as of the close of
such calendar year.
‘‘(d) SPECIAL RULES.—
‘‘(1) ADJUSTMENT
FOR
CERTAIN
SCHOLAR-
SHIPS
AND
VETERANS
BENEFITS.—The amounts
otherwise taken into account under subsection (a) as
qualified educational expenses of any individual dur-
ing any period shall be reduced (before the applica-
tion of subsection (b)) by any amounts received by
such individual during such period as—
‘‘(A) a qualified scholarship (within the
meaning of section 117(b)) which under section
117 is not includible in gross income, or
‘‘(B) an educational assistance allowance
under chapters 32, 34, or 35 of title 38 of the
United States Code.
‘‘(2) ELIGIBLE
COURSES.—Amounts paid for
qualified 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 for which credit is allowed toward a recog-
nized degree by an institution of higher edu-
cation or toward a certificate of required course
work at a vocational school, and
‘‘(B) are not attributable to any graduate
program of such individual.
‘‘(3) INDIVIDUAL
MUST
BE
AT
LEAST
HALF-
TIME
STUDENT.—No deduction shall be allowed
under subsection (a) for amounts paid during the
taxable year for qualified educational expenses with
respect to any individual unless that individual, dur-
ing any 4 calendar months during the calendar year
in which the taxable year of the taxpayer begins, is
carrying at least one-half the normal full-time work
load for the course of study the student is pursuing,
as determined by the eligible education institution.
‘‘(4) TAXPAYER WHO IS DEPENDENT OF AN-
OTHER TAXPAYER.—No deduction shall be allowed
to a taxpayer under subsection (a) for amount paid
for the education of such taxpayer if such taxpayer
is a dependent of another person for a taxable year
beginning in the calendar year in which the taxable
year of the taxpayer begins.
‘‘(5) SPOUSE.—No deduction shall be allowed
under subsection (a) for amounts paid during the
taxable year for qualified 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) COORDINATION WITH OTHER PROVISIONS.—
This section shall not apply to any amount which is allow-
able as a deduction under this chapter without regard to
this section.
‘‘(f) REGULATIONS.—The Secretary shall prescribe
such regulations as may be necessary or appropriate to
carry out the provisions of this section.’’
(b) DEDUCTION ALLOWED WHETHER OR NOT TAX-
PAYER ITEMIZES OTHER DEDUCTIONS.—Subsection (a)
of section 62 of such Code is amended by inserting after
paragraph (15) the following new paragraph:
‘‘(16) TUITION AND RELATED EXPENSES.—The
deduction allowed by section 220.’’
(c) 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. 220. Tuition and fees for undergraduate and postsecondary
vocational education.
‘‘Sec. 221. Cross reference.’’
(d) EFFECTIVE DATE.—The amendments made by
this section shall apply to amounts paid after December
31, 1995, with respect to education furnished after such
date.
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