I 
113TH CONGRESS 
2D SESSION 
H. R. 5509 
To amend the Internal Revenue Code of 1986 to increase and extend the 
American Opportunity Tax Credit and to increase the student loan inter-
est deduction. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 17, 2014 
Mr. BRALEY of Iowa 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 increase 
and extend the American Opportunity Tax Credit and 
to increase the student loan interest deduction. 
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 ‘‘College Tuition and 
Debt Relief Act of 2014’’. 
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SEC. 2. AMERICAN OPPORTUNITY TAX CREDIT INCREASE 
AND EXTENSION. 
(a) CREDIT MADE PERMANENT.—Section 25A(i) of 
the Internal Revenue Code of 1986 is amended by striking 
‘‘and before 2018’’. 
(b) INCREASE IN CREDIT AMOUNT.—Paragraph (1) 
of section 25A(i) of the Internal Revenue Code of 1986 
is amended— 
(1) in subparagraph (A) by striking ‘‘$2,000’’ 
and inserting ‘‘$2,500’’, and 
(2) in subparagraph (B) by striking ‘‘as exceeds 
$2,000 but does not exceed $4,000’’ and inserting 
‘‘as exceeds $2,500 but does not exceed $4,500’’. 
(c) ADJUSTMENT FOR INFLATION.—Section 25A(i) 
of the Internal Revenue Code of 1986 is amended by add-
ing at the end the following new paragraph: 
‘‘(7) ADJUSTMENTS
FOR
INFLATION.—In the 
case of a taxable year beginning after December 31, 
2015, each of the dollar amounts in subparagraph 
(A) and (B) of paragraph (1) and clause (ii) of 
paragraph (4)(A) shall be increased 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-
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mined by substituting ‘calendar year 2014’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof. 
If any amount as increased under the preceding sen-
tence is not a multiple of $10, such amount shall be 
rounded to the nearest multiple of $10.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
SEC. 3. STUDENT LOAN INTEREST DEDUCTION INCREASE. 
(a) IN GENERAL.—Paragraph (1) of section 221(b) 
of the Internal Revenue Code of 1986 is amended to read 
as follows: 
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the deduction allowed by subsection (a) 
for the taxable year shall not exceed $5,000.’’. 
(b) ADJUSTMENT FOR INFLATION.— 
(1) IN GENERAL.—Section 221(f) of the Inter-
nal Revenue Code of 1986 is amended by redesig-
nating paragraph (2) as paragraph (3) and by in-
serting after paragraph (1) the following new para-
graph: 
‘‘(2) ADJUSTMENT
FOR
INFLATION.—In the 
case of a taxable year beginning after December 31, 
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2015, the $5,000 dollar amount in paragraph (1) 
shall be increased 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 2014’ for 
‘calendar year 1992’ in subparagraph (B) 
thereof.’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
221(f)(3) of the Internal Revenue Code of 1986, as 
redesignated by paragraph (1), is amended to read 
as follows: 
‘‘(3) ROUNDING.— 
‘‘(A) MODIFIED ADJUSTED GROSS INCOME 
THRESHOLDS.—If any amount as adjusted 
under paragraph (1) is not a multiple of 
$5,000, such amount shall be rounded to the 
next lowest multiple of $5,000. 
‘‘(B) DEDUCTION
LIMITATION.—If any 
amount as increased under paragraph (2) is not 
a multiple of $10, such amount shall be round-
ed to the nearest multiple of $10.’’. 
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(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2014. 
Æ 
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