and by inserting after subsection (i) the following new sub-
section: 
‘‘(j) BACK TO SCHOOL CREDIT.— 
‘‘(1) AMOUNT OF CREDIT.—In lieu of the credit 
allowed under subsection (a), on the election of an 
eligible individual, there shall be allowed as a credit 
against the tax imposed by this chapter for the tax-
able year an amount equal to the sum of— 
‘‘(A) so much of the qualified tuition and 
related expenses paid by the taxpayer during 
the taxable year (for education furnished during 
any academic period beginning in such taxable 
year) as does not exceed $2,000, plus 
‘‘(B) 25 percent of such expenses so paid 
as exceeds $2,000 but does not exceed $4,000. 
‘‘(2) LIMITATION
BASED
ON
MODIFIED
AD-
JUSTED GROSS INCOME.— 
‘‘(A) IN
GENERAL.—The amount which 
would (but for this paragraph) be taken into ac-
count under paragraph (1) for the taxable year 
shall be reduced (but not below zero) by the 
amount determined under subparagraph (B). 
‘‘(B) 
AMOUNT
OF
REDUCTION.—The 
amount determined under this subparagraph is 
the amount which bears the same ratio to the 
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amount which would be so taken into account 
as— 
‘‘(i) the excess of— 
‘‘(I) the taxpayer’s modified ad-
justed gross income for such taxable 
year, over 
‘‘(II) 
the 
applicable 
amount 
under subparagraph (D), bears to 
‘‘(ii) $10,000 ($20,000 in the case of 
a joint return). 
‘‘(C) MODIFIED
ADJUSTED
GROSS
IN-
COME.—For purposes of this paragraph, the 
term ‘modified adjusted gross income’ means 
the adjusted gross income of the taxpayer for 
the taxable year increased by any amount ex-
cluded from gross income under section 911, 
931, or 933. 
‘‘(D) APPLICABLE AMOUNT.—The applica-
ble amount under this subparagraph is— 
‘‘(i) in the case of a joint return, 200 
percent of the dollar amount in effect 
under clause (ii) for the taxable year, and 
‘‘(ii) in any other case, $60,000. 
‘‘(3) DEFINITIONS.—For purposes of this sub-
section— 
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‘‘(A) ELIGIBLE
INDIVIDUAL.—The term 
‘eligible individual’ means any individual— 
‘‘(i) who has attained the age of 55, 
and 
‘‘(ii) with respect to whom qualified 
tuition and related expenses have not been 
paid during the 5-taxable year period end-
ing with the taxable year immediately pre-
ceding the first taxable year for which such 
individual elects the application of this 
subsection. 
‘‘(B) QUALIFIED TUITION AND RELATED 
EXPENSES.—Notwithstanding subsection (f), 
the term ‘qualified tuition and related expense’ 
means any expense of a type which is taken 
into account in determining the cost of attend-
ance (as defined in section 472 of the Higher 
Education Act of 1965, as in effect on the date 
of the enactment of this section) of a student 
who is— 
‘‘(i) the taxpayer, or 
‘‘(ii) the taxpayer’s spouse. 
‘‘(4) INFLATION ADJUSTMENT.— 
‘‘(A) CREDIT LIMITATION.— 
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‘‘(i) IN GENERAL.—In the case of a 
taxable year beginning after 2011, each of 
the $2,000 amounts and the $4,000 
amount under paragraph (1) shall be in-
creased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for the calendar year in which the tax-
able year begins, determined by sub-
stituting ‘calendar year 2010’ for ‘cal-
endar year 1992’ in subparagraph (B) 
thereof. 
‘‘(ii) ROUNDING.—If any amount as 
adjusted under clause (i) is not a multiple 
of $100, such amount shall be rounded to 
the next lowest multiple of $100. 
‘‘(B) INCOME LIMITS.— 
‘‘(i) IN GENERAL.—In the case of a 
taxable year beginning after 2011, the 
$80,000 amount in paragraph (2)(D)(ii) 
shall each be increased by an amount equal 
to— 
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‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for the calendar year in which the tax-
able year begins, determined by sub-
stituting ‘calendar year 2010’ for ‘cal-
endar year 1992’ in subparagraph (B) 
thereof. 
‘‘(ii) ROUNDING.—If any amount as 
adjusted under clause (i) is not a multiple 
of $1,000, such amount shall be rounded 
to the next lowest multiple of $1,000. 
‘‘(5) DENIAL
OF
CREDIT
IF
STUDENT
CON-
VICTED OF A FELONY DRUG OFFENSE.—A rule simi-
lar to the rule of subsection (b)(2)(D) shall apply for 
purposes of this subsection.’’. 
(b) ADJUSTMENT
FOR
CERTAIN
SCHOLARSHIPS, 
ETC.—Paragraph (2) of section 25A(g) of such Code is 
amended— 
(1) by inserting ‘‘or (j)’’ after ‘‘subsection (a)’’, 
and 
(2) by inserting ‘‘, and paragraphs (1) and (2) 
of subsection (j)’’ after ‘‘and (d)’’. 
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(c) TREATMENT OF EXPENSES PAID BY DEPEND-
ENT.—Subparagraph (A) of section 25A(g)(3) of such 
Code is amended by inserting ‘‘or (j)’’ after ‘‘subsection 
(a)’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2010. 
Æ 
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