Extra Credit for Working Students Act of 2016

Bill: 114-hr-5803
Sponsor: full_name: Rep. Hardy, Cresent [R-NV-4]
Introduced: 2016-07-14
Policy area: Taxation
Subjects: Congressional oversight

Government studies and investigations

Higher education

Income tax credits

Student aid and college costs
Latest action: action_date: 2016-07-14
text: Referred to the House Committee on Ways and Means.

Summaries:
action_date: 2016-07-14
action_desc: Introduced in House
text: <p><b>Extra Credit for Working Students Act of 2016 </b></p> <p>This bill amends the Internal Revenue Code to allow a taxpayer to accelerate the American Opportunity Tax Credit for qualified tuition and related expenses. A taxpayer may elect to receive the full amount of the credit over the first two years of postsecondary education rather than the four-year period required under current law. Such an election is irrevocable, applies for all subsequent tax years, and may not be made for any taxable year beginning after December 31, 2022. </p> <p>The Department of the Treasury must submit to Congress reports that include: the election rate, the demographics of the students making the elections, and an assessment of the effectiveness of the elections and the tax credit in improving college completion times. </p>

tv_txt: I 114th CONGRESS 2d Session H. R. 5803 IN THE HOUSE OF REPRESENTATIVES July 14, 2016 Mr. Hardy 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 temporary election to accelerate the American Opportunity Tax Credit.

1. Short title This Act may be cited as the Extra Credit for Working Students Act of 2016 . 2. Accelerated American Opportunity tax credit (a) In general Section 25A(i)(2) of the Internal Revenue Code of 1986 is amended to read as follows: (2) Special rule for number of years credit allowed (A) In general Subparagraphs (A) and (C) of subsection (b)(2) shall be applied by substituting 4 for 2 . (B) Election to accelerate credit (i) In general In the case of an eligible student with respect to whom an election to have this section apply has not been made for any prior taxable year, a taxpayer may elect for the taxable year for subparagraph (A) not to apply with respect to such student and to apply paragraph (1) by substituting $4,000 for $2,000 in subparagraph (A) thereof and by substituting $4,000 but does not exceed $8,000 for $2,000 but does not exceed $4,000 in subparagraph (B) thereof. (ii) Election irrevocable Once made, any such election shall be irrevocable and shall apply with respect to such student for all subsequent taxable years. (iii) Termination No election may be first made under clause (i) for any taxable year beginning after December 31, 2022. . (b) Study (1) In general Not later than the date that is 1 year after the date of the enactment of this Act, and annually for the 5 years thereafter, the Secretary of the Treasury shall submit a report to Congress with respect to the election under section 25A(i)(2)(B) of the Internal Revenue Code of 1986 to accelerate the American Opportunity Tax Credit. Such report shall include details on the election rate of the option and the demographics of students so electing. (2) Report upon termination In the last report required to be submitted under paragraph (1), the Secretary of the Treasury shall include an assessment of the effectiveness of such election at improving college completion times and the effectiveness of the American Opportunity Tax Credit, in general, at helping students to complete college on time. (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2016.