I 
113TH CONGRESS 
1ST SESSION H. R. 2253 
To amend the Internal Revenue Code of 1986 to consolidate the current 
education tax incentives into one credit against income tax for higher 
education expenses, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 4, 2013 
Mr. SCHOCK 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 into one credit 
against income tax for higher education expenses, and 
for other purposes. 
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 and 
Skills Obtainment Act’’. 
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SEC. 2. CONSOLIDATION OF EDUCATION TAX INCENTIVES 
INTO HIGHER EDUCATION AND SKILLS OB-
TAINMENT 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. HIGHER EDUCATION AND SKILLS OBTAINMENT 
CREDIT. 
‘‘(a) ALLOWANCE OF CREDIT.—In the case of any 
eligible student for whom an election is in effect under 
this section for any taxable year, there shall be allowed 
as a credit against the tax imposed by this chapter for 
the taxable year an amount equal to the sum of— 
‘‘(1) 100 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 student during any academic period be-
ginning in such taxable year) as does not exceed 
$2,000, plus 
‘‘(2) 25 percent of such expenses so paid as ex-
ceeds $2,000 but does not exceed $4,000. 
‘‘(b) LIMITATIONS.— 
‘‘(1) CREDIT ALLOWED ONLY FOR 4 TAXABLE 
YEARS.—The credit under subsection (a) shall not 
be allowed for a taxable year with respect to the 
qualified tuition and related expenses of an eligible 
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student if the student has completed (before the be-
ginning of such taxable year) 4 years of any com-
bination of postsecondary education at an eligible 
educational institution and instruction described in 
subsection (c)(2)(B). 
‘‘(2) LIMITATION BASED ON HOUSEHOLD IN-
COME.—The amount which would (but for this para-
graph) be taken into account under subsection (a) 
for the taxable year shall be reduced (but not below 
zero) by the amount which bears the same ratio to 
the amount which would be so taken into account as 
the excess (if any) of— 
‘‘(A) the household income of the taxpayer 
for such taxable year over 400 percent of the 
poverty line, bears to 
‘‘(B) the amount equal to 500 percent of 
the poverty line minus the amount equal to 400 
percent of the poverty line. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) ELIGIBLE STUDENT.—The term ‘eligible 
student’ means, with respect to any academic period, 
any individual who— 
‘‘(A) meets the requirements of section 
484(a)(1) of the Higher Education Act of 1965 
(20 U.S.C. 1091(a)(1)), as in effect on the date 
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of the enactment of the Taxpayer Relief Act of 
1997, and 
‘‘(B) in the case of a student enrolled in 
a degree program, is carrying at least 1⁄2 the 
normal full-time work load for the course of 
study the student is pursuing. 
‘‘(2) QUALIFIED
TUITION
AND
RELATED
EX-
PENSES.—The term ‘qualified tuition and related ex-
penses’ means tuition, fees, and costs of course ma-
terials— 
‘‘(A) for education during the taxable year 
with respect to the attendance at an eligible 
educational institution during any academic pe-
riod beginning in such taxable year of— 
‘‘(i) the 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, and 
‘‘(B) for a course of instruction from an el-
igible provider to acquire or improve job skills 
of the individual during the taxable year (for 
education furnished during any academic period 
beginning in such taxable year). 
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‘‘(3) ELIGIBLE EDUCATIONAL INSTITUTION.— 
The 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. 
‘‘(4) POVERTY LINE.— 
‘‘(A) IN
GENERAL.—The term ‘poverty 
line’ has the meaning given that term in section 
2110(c)(5) of the Social Security Act (42 
U.S.C. 1397jj(c)(5)) with respect to the tax-
payer’s family of the size involved. 
‘‘(B) POVERTY LINE USED.—The poverty 
line used shall be the most recently published 
poverty line as of the 1st day of the regular en-
rollment period for coverage during such cal-
endar year. 
‘‘(5) ELIGIBLE PROVIDER.—The term ‘eligible 
provider’ means provider of training services (within 
the meaning of section 134(d)(4)(D) of the Work-
force 
Investment 
Act 
of 
1998) 
(29 
U.S.C. 
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2864(d)(4)(D)) who is identified in accordance with 
section 
122(e)(3) 
of 
such 
Act 
(29 
U.S.C. 
2842(e)(3)). 
‘‘(d) SPECIAL RULES.— 
‘‘(1) 
IDENTIFICATION
REQUIREMENTS.—No 
credit shall be allowed under subsection (a) to a tax-
payer with respect to an eligible student unless the 
taxpayer includes on the return of tax for the tax-
able year— 
‘‘(A) the name and social security number 
of such student, and 
‘‘(B) the employer identification number, 
name, and address of any institution or eligible 
provider to which tuition, fees, and costs of 
course materials were paid with respect to such 
student. 
‘‘(2) ADJUSTMENT
FOR
CERTAIN
SCHOLAR-
SHIPS.—The expenses otherwise taken into account 
under subsection (a) with respect to an individual 
for an academic period shall be reduced (before the 
application of subsections (a) and (b)) by the sum 
of any amounts paid for the benefit of such indi-
vidual which are allocable to such period as— 
‘‘(A) a qualified scholarship which is ex-
cludable from gross income under section 117, 
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‘‘(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, 
‘‘(C) a Federal Pell Grant or a Federal 
supplemental educational opportunity grant 
under subparts 1 and 3, respectively, of part A 
of title IV of the Higher Education Act of 1965 
(20 U.S.C. 1070a and 1070b et seq., respec-
tively), and 
‘‘(D) 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-
vidual’s enrollment at an eligible educational in-
stitution, which is excludable from gross income 
under any law of the United States. 
‘‘(3) TREATMENT OF EXPENSES PAID BY DE-
PENDENT.—If a deduction under section 151 with 
respect to an individual is allowed to another tax-
payer for a taxable year beginning in the calendar 
year in which such individual’s taxable year begins— 
‘‘(A) no credit shall be allowed under sub-
section (a) to such individual for such individ-
ual’s taxable year, and 
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‘‘(B) amounts paid by such individual dur-
ing such individual’s taxable year shall be treat-
ed for purposes of this section as paid by such 
other taxpayer. 
‘‘(4) 
TREATMENT
OF
CERTAIN
PREPAY-
MENTS.—If tuition, fees, or costs of course materials 
are paid by the taxpayer during a taxable year for 
an academic period which begins during the first 3 
months following such taxable year, such academic 
period shall be treated for purposes of this section 
as beginning during such taxable year. 
‘‘(5) DENIAL OF DOUBLE BENEFIT.—No credit 
shall be allowed under this section for any expense 
for which deduction is allowed under any other pro-
vision of this chapter. 
‘‘(6) NO
CREDIT
FOR
MARRIED
INDIVIDUALS 
FILING SEPARATE RETURNS.—If the taxpayer is a 
married individual (within the meaning of section 
7703), this section shall apply only if the taxpayer 
and the taxpayer’s spouse file a joint return for the 
taxable year. 
‘‘(7) NONRESIDENT ALIENS.—If the taxpayer is 
a nonresident alien individual for any portion of the 
taxable year, this section shall apply only if such in-
dividual is treated as a resident alien of the United 
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States for purposes of this chapter by reason of an 
election under subsection (g) or (h) of section 6013. 
‘‘(8) SUPPORTING INFORMATION.—No expense 
shall be taken into account under this section for a 
taxable year unless the taxpayer submits with the 
return of tax for the taxable year information sup-
porting such expense. 
‘‘(e) ELECTION NOT TO HAVE SECTION APPLY.—A 
taxpayer may elect not to have this section apply with re-
spect to the expenses of an individual for any taxable year. 
‘‘(f) VERIFICATION AND CONFIRMATION OF CERTAIN 
INFORMATION.—In carrying out this section, the Sec-
retary shall utilize information from the Secretary of Edu-
cation to confirm and verify information relating to edu-
cational institutions and students, including the Inte-
grated Postsecondary Education Data System and the Na-
tional Student Loan Data System. 
‘‘(g) REGULATIONS.—The Secretary may prescribe 
such regulations as may be necessary or appropriate to 
carry out this section, including regulations providing for 
a recapture of the credit allowed under this section in 
cases where there is a refund in a subsequent taxable year 
of any expense which was taken into account in deter-
mining the amount of such credit.’’. 
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(b) REPEAL OF DEDUCTION FOR QUALIFIED TUI-
TION AND RELATED EXPENSES.— 
(1) IN GENERAL.—Part VII of subchapter B of 
chapter 1 of such Code (relating to additional 
itemized deductions for individuals) is amended by 
striking section 222. 
(2) CLERICAL AMENDMENT.—The table of sec-
tions for part VII of subchapter B of chapter 1 of 
such Code is amended by striking the item relating 
to section 222. 
(c) INFORMATION RETURNS.— 
(1) IN
GENERAL.—Section 6050S(e) of such 
Code is amended by striking ‘‘subsection (g)(2)’’ and 
inserting ‘‘subsection (d)(2)’’. 
(2) ATTENDANCE.—Paragraph (2) of section 
6050S(b) of such Code is amended by redesignating 
subparagraph (C) as subparagraph (D) and by in-
serting after subparagraph (B) the following new 
subparagraph: 
‘‘(C) the status of the individual for each 
academic period of the year for which payments 
are received as— 
‘‘(i) a full-time or part-time student, 
‘‘(ii) if a part-time student, whether 
the individual is at least half time, and 
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‘‘(iii) whether the student is a grad-
uate student.’’. 
(d) OMISSION
OF IDENTIFICATION INFORMATION 
AND NUMBER OF YEARS CREDIT IS CLAIMED TREATED 
AS MATHEMATICAL OR CLERICAL ERROR.—Subparagraph 
(J) of section 6213(g)(2) of such Code is amended to read 
as follows: 
‘‘(J) in the case of information required 
under section 25A (relating to higher education 
obtainment credit)— 
‘‘(i) an omission of a correct social se-
curity number and employer identification 
number of any institution required to be 
included on a return under subsection 
(d)(1) of such section, and 
‘‘(ii) an entry on the return claiming 
the credit in violation of the limitation 
under subsection (b)(1) of such return,’’. 
(e) CONFORMING AMENDMENTS.— 
(1) Section 62(a) of such Code is amended by 
striking paragraph (18). 
(2) Subparagraph (A) of section 86(b)(2) of 
such Code is amended by striking ‘‘222,’’. 
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(3) Subparagraph (B) of section 72(t)(7) of 
such 
Code 
is 
amended 
by 
striking 
‘‘section 
25A(g)(2)’’ and inserting ‘‘section 25A(d)(2)’’. 
(4) Subparagraph (A) of section 135(c)(4) of 
such Code is amended by striking ‘‘222,’’. 
(5) Subparagraph (A) of section 137(b)(3) of 
such Code is amended by striking ‘‘222,’’. 
(6) Subparagraph (A) of section 199(d)(2) of 
such Code is amended by striking ‘‘222,’’. 
(7) Clause (ii) of section 219(g)(3)(A) of such 
Code is amended by striking ‘‘222,’’. 
(8) Clause (i) of section 221(b)(2)(C) of such 
Code is amended by striking ‘‘222,’’. 
(9) Clause (iii) of section 469(i)(3)(F) of such 
Code is amended by striking ‘‘221, and 222’’ and in-
serting ‘‘and 221’’. 
(10) Subsection (d) of section 221 of such Code 
is amended— 
(A) by striking ‘‘section 25A(g)(2)’’ in 
paragraph 
(2)(B) 
and 
inserting 
‘‘section 
25A(d)(2)’’, and 
(B) by striking ‘‘section 25A(f)(2)’’ in the 
second sentence of paragraph (2) and inserting 
‘‘section 25A(c)(3)’’. 
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(11) Section 221(d)(3) of such Code is amend-
ed by striking ‘‘section 25A(b)(3)’’ and inserting 
‘‘section 25A(c)(3)’’. 
(12) Subclause (I) of section 529(c)(3)(B)(v) of 
such 
Code 
is 
amended 
by 
striking 
‘‘section 
25A(g)(2)’’ and inserting ‘‘25A(d)(2)’’. 
(13) Clause (i) of section 529(e)(3)(B) of such 
Code is amended by striking ‘‘section 25A(b)(3)’’ 
and inserting ‘‘section 221(c)(3)’’. 
(14) Subclause (I) of section 530(d)(2)(C)(i) of 
such 
Code 
is 
amended 
by 
striking 
‘‘section 
25A(g)(2)’’ and inserting ‘‘section 25A(d)(2)’’. 
(15) Clause (iii) of section 530(d)(4)(B) of such 
Code is amended by striking ‘‘section 25A(g)(2)’’ 
and inserting ‘‘25A(d)(2)’’. 
(16) Section 1400O of such Code is amended 
by adding at the end the following flush sentence: 
‘‘For purposes of this section, any reference to sec-
tion 25A shall be treated as a reference to such section 
as in effect on the day before the date of the enactment 
of this sentence.’’. 
(17) The table of sections for subpart A of part 
IV of subchapter A of chapter 1 of such Code is 
amended by striking the item relating to section 25A 
and inserting the following: 
‘‘Sec. 25A. Higher education and skills obtainment credit.’’. 
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(f) SENSE OF CONGRESS.—It is the sense of Con-
gress that any savings in revenues resulting from the en-
actment of this section shall be applied to the currently 
projected Pell Grant funding shortfall beginning in 2015 
and to deficit reduction. 
(g) EFFECTIVE DATE.—The amendments made by 
this section shall apply to expenses paid after December 
31, 2013, for education furnished in academic periods be-
ginning after such date. 
Æ 
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