Source: https://irc.bloombergtax.com/public/uscode/doc/irc/section_25a
Timestamp: 2020-07-05 09:17:16
Document Index: 587922920

Matched Legal Cases: ['§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25', '§ 25']

Internal Revenue Code, § 25A. American Opportunity And Lifetime Learning Credits
I.R.C. § 25A(a) Allowance Of Credit —
I.R.C. § 25A(a)(1) —
the American Opportunity Tax Credit, plus
I.R.C. § 25A(a)(2) —
I.R.C. § 25A(b) American Opportunity Tax Credit
I.R.C. § 25A(b)(1) Per Student Credit —
I.R.C. § 25A(b)(1)(A) —
I.R.C. § 25A(b)(1)(B) —
I.R.C. § 25A(b)(2) Limitations Applicable To American Opportunity Tax Credit
I.R.C. § 25A(b)(2)(A) Credit Allowed Only For 4 Taxable Years —
I.R.C. § 25A(b)(2)(B) Credit Allowed For Year Only If Individual Is At Least 1/2 Time Student For Portion Of Year —
I.R.C. § 25A(b)(2)(C) Credit Allowed Only For First 4 Years Of Postsecondary Education —
I.R.C. § 25A(b)(2)(D) Denial Of Credit If Student Convicted Of A Felony Drug Offense —
I.R.C. § 25A(b)(3) Eligible Student —
For purposes of this subsection, the term “eligible student” means, with respect to any academic period, a student who—
I.R.C. § 25A(b)(3)(A) —
I.R.C. § 25A(b)(3)(B) —
I.R.C. § 25A(b)(4) Restrictions On Taxpayers Who Improperly Claimed American Opportunity Tax Credit In Prior Years
I.R.C. § 25A(b)(4)(A) Taxpayers Making Prior Fraudulent Or Reckless Claims
I.R.C. § 25A(b)(4)(A)(i) In General —
I.R.C. § 25A(b)(4)(A)(ii) Disallowance Period —
I.R.C. § 25A(b)(4)(A)(ii)(I) —
the period of 10 taxable years after the most recent taxable year for which there was a final determination that the taxpayer's claim of the American Opportunity Tax Credit under this section was due to fraud, and
I.R.C. § 25A(b)(4)(A)(ii)(II) —
the period of 2 taxable years after the most recent taxable year for which there was a final determination that the taxpayer's claim of the American Opportunity Tax Credit under this section was due to reckless or intentional disregard of rules and regulations (but not due to fraud).
I.R.C. § 25A(b)(4)(B) Taxpayers Making Improper Prior Claims —
I.R.C. § 25A(c) Lifetime Learning Credit
I.R.C. § 25A(c)(1) Per Taxpayer Credit —
The Lifetime Learning Credit for any taxpayer for any taxable year is an amount equal to 20 percent of 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 $10,000.
I.R.C. § 25A(c)(2) Special Rules For Determining Expenses
I.R.C. § 25A(c)(2)(A) Coordination With American Opportunity Tax Credit —
The qualified tuition and related expenses with respect to an individual who is an eligible student for whom a American Opportunity Tax Credit under subsection (a)(1) is allowed for the taxable year shall not be taken into account under this subsection.
I.R.C. § 25A(c)(2)(B) Expenses Eligible For Lifetime Learning Credit —
I.R.C. § 25A(d) Limitation Based On Modified Adjusted Gross Income
I.R.C. § 25A(d)(1) American Opportunity Tax Credit —
I.R.C. § 25A(d)(1)(A) —
I.R.C. § 25A(d)(1)(A)(i) —
I.R.C. § 25A(d)(1)(A)(ii) —
I.R.C. § 25A(d)(1)(B) —
I.R.C. § 25A(d)(2) Lifetime Learning Credit —
I.R.C. § 25A(d)(2)(A) —
I.R.C. § 25A(d)(2)(A)(i) —
I.R.C. § 25A(d)(2)(A)(ii) —
I.R.C. § 25A(d)(2)(B) —
I.R.C. § 25A(d)(3) Modified Adjusted Gross Income —
For purposes of this subsection, the term “modified adjusted gross income” means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.
I.R.C. § 25A(e) Election Not To Have Section Apply —
I.R.C. § 25A(f) Definitions —
I.R.C. § 25A(f)(1) Qualified Tuition And Related Expenses
I.R.C. § 25A(f)(1)(A) In General —
The term “qualified tuition and related expenses” means tuition and fees required for the enrollment or attendance of—
I.R.C. § 25A(f)(1)(A)(i) —
I.R.C. § 25A(f)(1)(A)(ii) —
I.R.C. § 25A(f)(1)(A)(iii) —
I.R.C. § 25A(f)(1)(B) Exception For Education Involving Sports, Etc. —
I.R.C. § 25A(f)(1)(C) Exception For Nonacademic Fees —
I.R.C. § 25A(f)(1)(D) Required Course Materials Taken Into Account For American Opportunity Tax Credit —
For purposes of determining the American Opportunity Tax Credit, subparagraph (A) shall be applied by substituting “tuition, fees, and course materials” for “tuition and fees”.
I.R.C. § 25A(f)(2) Eligible Educational Institution —
The term “eligible educational institution” means an institution—
I.R.C. § 25A(f)(2)(A) —
I.R.C. § 25A(f)(2)(B) —
I.R.C. § 25A(g) Special Rules
I.R.C. § 25A(g)(1) Identification Requirement
I.R.C. § 25A(g)(1)(A) In General —
I.R.C. § 25A(g)(1)(B) Additional Identification Requirements With Respect To American Opportunity Tax Credit
I.R.C. § 25A(g)(1)(B)(i) Student —
I.R.C. § 25A(g)(1)(B)(ii) Taxpayer —
I.R.C. § 25A(g)(1)(B)(iii) Institution —
I.R.C. § 25A(g)(2) Adjustment For Certain Scholarships, Etc. —
I.R.C. § 25A(g)(2)(A) —
I.R.C. § 25A(g)(2)(B) —
I.R.C. § 25A(g)(2)(C) —
I.R.C. § 25A(g)(3) Treatment Of Expenses Paid By Dependent —
I.R.C. § 25A(g)(3)(A) —
no credit shall be allowed under subsection (a) to such individual for such individual's taxable year,
I.R.C. § 25A(g)(3)(B) —
qualified tuition and related expenses paid by such individual during such individual's taxable year shall be treated for purposes of this section as paid by such other taxpayer, and
I.R.C. § 25A(g)(3)(C) —
I.R.C. § 25A(g)(4) Treatment Of Certain Prepayments —
I.R.C. § 25A(g)(5) Denial Of Double Benefit —
I.R.C. § 25A(g)(6) No Credit For Married Individuals Filing Separate Returns —
I.R.C. § 25A(g)(7) Nonresident Aliens —
I.R.C. § 25A(g)(8) Payee Statement Requirement —
I.R.C. § 25A(h) Inflation Adjustment
I.R.C. § 25A(h)(1) In General —
I.R.C. § 25A(h)(1)(A) —
I.R.C. § 25A(h)(1)(B) —
the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2000” for “calendar year 2016” in subparagraph (A)(ii) thereof.
I.R.C. § 25A(h)(2) Rounding —
I.R.C. § 25A(i) Portion Of American Opportunity Tax Credit Made Refundable —
Forty percent of so much of the credit allowed under subsection (a) as is attributable to the American Opportunity Tax Credit (determined after application of subsection (d) and without regard to this paragraph and section 26(a)) shall be treated as a credit allowable under subpart C (and not allowed under subsection (a)). The preceding sentence shall not apply to any taxpayer for any taxable year if such taxpayer is a child to whom subsection (g) of section 1 applies for such taxable year.
I.R.C. § 25A(j) Regulations —
(Added by Pub. L. 105-34, title II, Sec. 201(a), Aug. 5, 1997, 111 Stat. 788; Pub. L. 107-16, title IV, Sec. 401(g)(2)(A), June 7, 2001, 115 Stat. 38; Pub. L. 111-5, Div. B, title I, Sec. 1004(a), Feb. 17, 2009, 123 Stat. 115; Pub. L. 111-148, Sec. 10909(b)(2)(C), Mar. 23, 2010, 124 Stat. 119; Pub. L. 111-312, title I, Sec. 103(a)(1), Dec. 17, 2010, 124 Stat. 3296; Pub. L. 112-240, title I, Sec. 103(a), 104(c)(2), Jan. 2, 2013, 126 Stat. 2313; Pub. L. 113-295, Div. A, title II, Sec. 209(b), Dec. 19, 2014, 128 Stat. 4010; Pub. L. 114-27, title VIII, Sec. 804(a), June 29, 2015; Pub. L. 114-113, Div. Q, title I, Sec. 102(a), title II, Sec. 206(a), 208(a), 211(a), Dec. 18, 2015; Pub. L. 115-97, title I, Sec. 11002(d)(1)(B), Dec. 22, 2017, 131 Stat. 2054; Pub. L. 115-141, Div. U, title I, Sec. 101(l), title IV, Sec. 401(b)(1), Mar. 23, 2018, 132 Stat. 348.)
2018 — Sec. 25A. Pub. L. 115-141, Div. U, Sec. 101(l)(9), amended the heading of Sec. 25A by substituting “American Opportunity” for “Hope”.
Sec. 25A. Pub. L. 115-141, Div. U, Sec. 101(l)(14), amended Sec. 25A by substituting “American Opportunity Tax Credit” for “Hope Scholarship Credit” each place it appeared.
Subsec. (b). Pub. L. 115-141, Div. U, Sec. 101(l)(11), amended the heading of subsec. (b) by substituting “American Opportunity Tax Credit” for “Hope Scholarship”.
Subsec. (b)(1)(A). Pub. L. 115-141, Div. U, Sec. 101(l)(1)(A), amended subpar. (A) by substituting “$2,000” for “$1,000”.
Subsec. (b)(1)(B). Pub. L. 115-141, Div. U, Sec. 101(l)(1)(B), amended subpar (B) by substituting “25 percent” for “50 percent”, by substituting “$2,000” for “$1,000”, and by substituting “$4,000” for “the applicable limit”.
Subsec. (b)(2). Pub. L. 115-141, Div. U, Sec. 101(l)(12), amended the heading of par. (2) by substituting “American Opportunity Tax Credit” for “Hope Scholarship”.
Subsec. (b)(2)(A). Pub. L. 115-141, Div. U, Sec. 101(l)(2), amended subpar. (A) by substituting “4” for “2” in the heading and text.
Subsec. (b)(2)(C). Pub. L. 115-141, Div. U, Sec. 101(l)(2), amended subpar. (C) by substituting “4” for “2” in the heading and text.
Subsec. (b)(4). Pub. L. 115-141, Div. U, Sec. 101(l)(3) amended par. (4). Before amendment, it read as follows:
“(4) Applicable Limit.—For purposes of paragraph (1)(B), the applicable limit for any taxable year is an amount equal to 2 times the dollar amount in effect under paragraph (1)(A) for such taxable year.”
Subsec. (c)(1). Pub. L. 115-141, Div. U, Sec. 401(b)(1), amended par. (1) by striking “($5,000 in the case of taxable years beginning before January 1, 2003)’’.
Subsec. (c)(2)(A). Pub. L. 115-141, Div. U, Sec. 101(l)(13), amended the heading of subpar. (A) by substituting “American Opportunity Tax Credit” for “Hope Scholarship”.
Subsec. (d). Pub. L. 115-141, Div. U, Sec. 101(l)(4), amended subsec. (d). Before amendment, it read as follows:
“(d) Limitation Based On Modified Adjusted Gross Income
“(1) In General.—The amount which would (but for this subsection) be taken into account under subsection (a) for the taxable year shall be reduced (but not below zero) by the amount determined under paragraph (2).
“(2) Amount Of Reduction.—The amount determined under this paragraph is the amount which bears the same ratio to the amount which would be so taken into account as—
“(B) $10,000 ($20,000 in the case of a joint return).
“(3) Modified Adjusted Gross Income.—The term “modified adjusted gross income” means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.”
Subsec. (f)(1)(D). Pub. L. 115-141, Div. U, Sec. 101(l)(5), amended par. (1) by adding subpar. (D).
Subsec. (g)(1). Pub. L. 115-141, Div. U, Sec. 101(l)(6), amended par. (1) by substituting “(A) In General.—No credit” for “No credit” and by adding subpar. (B).
Subsec. (h). Pub. L. 115-141, Div. U, Sec. 101(l)(7), amended subsec. (h). Before amendment, it read as follows:
“(h) Inflation Adjustments
“(1) Dollar Limitation On Amount Of Credit
“(A) In General.—In the case of a taxable year beginning after 2001, each of the $1,000 amounts under subsection (b)(1) shall be increased by an amount equal to—
“(ii) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting “calendar year 2000” for “calendar year 1992” in subparagraph (B) thereof.
“(B) Rounding.—If any amount as adjusted under subparagraph (A) is not a multiple of $100, such amount shall be rounded to the next lowest multiple of $100.
“(2) Income Limits
“(A) In General.—In the case of a taxable year beginning after 2001, the $40,000 and $80,000 amounts in subsection (d)(2) shall each be increased by an amount equal to—
“(B) Rounding.—If any amount as adjusted under subparagraph (A) is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000.”
Subsec. (i). Pub. L. 115-141, Div. U, Sec. 101(l)(8), amended subsec. (i). Before amendment, it read as follows:
“(i) American Opportunity Tax Credit.—In the case of any taxable year beginning after 2008—
“(1) Increase In Credit.—The Hope Scholarship Credit shall be an amount equal to the sum of—
“(B) 25 percent of such expenses so paid as exceeds $2,000 but does not exceed $4,000.
“(2) Credit Allowed For First 4 Years Of Post-Secondary Education.—Subparagraphs (A) and (C) of subsection (b)(2) shall be applied by substituting “4” for “2”.
“(3) Qualified Tuition And Related Expenses To Include Required Course Materials.—For purposes of determining the Hope Scholarship Credit, subsection (f)(1)(A) shall be applied by substituting “tuition, fees, and course materials” for “tuition and fees”.
“(4) Increase In AGI Limits For Hope Scholarship Credit.—In lieu of applying subsection (d) with respect to the Hope Scholarship Credit, such credit (determined without regard to this paragraph) shall be reduced (but not below zero) by the amount which bears the same ratio to such credit (as so determined) as—
“(A) the excess of —
“(i) the taxpayer's modified adjusted gross income (as defined in subsection (d)(3)) for such taxable year, over
“(5) Portion Of Credit Made Refundable.—40 percent of so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit (determined after application of paragraph (4) and without regard to this paragraph and section 26(a)) shall be treated as a credit allowable under subpart C (and not allowed under subsection (a)). The preceding sentence shall not apply to any taxpayer for any taxable year if such taxpayer is a child to whom subsection (g) of section 1 applies for such taxable year.
“(6) Identification Numbers
“(A) Student.—The requirements of subsection (g)(1) shall not be treated as met with respect to the Hope Scholarship Credit unless the individual's taxpayer identification number was issued on or before the due date for filing the return of tax for the taxable year.
“(B) Taxpayer.—No Hope Scholarship Credit shall be allowed under this section if the identifying number of the taxpayer was issued after the due date for filing the return for the taxable year.
“(C) Institution.—No Hope Scholarship Credit shall be allowed under this section unless the taxpayer includes the employer identification number of any institution to which qualified tuition and related expenses were paid with respect to the individual.
“(7) Restrictions On Taxpayers Who Improperly Claimed Credit In Prior Year
“(A) Taxpayers Making Prior Fraudulent Or Reckless Claims
“(i) In General.—No credit shall be allowed under this section for any taxable year in the disallowance period.
“(ii) Disallowance Period.—For purposes of clause (i), the disallowance period is—
“(B) Taxpayers Making Improper Prior Claims.—In the case of a taxpayer who is denied credit under this section for any taxable year as a result of the deficiency procedures under subchapter B of chapter 63, no credit shall be allowed under this section for any subsequent taxable year unless the taxpayer provides such information as the Secretary may require to demonstrate eligibility for such credit.”
2017 — Subsec. (h)(1)(A)(ii). Pub. L. 115-97, Sec. 11002(d)(1)(B), amended clause (ii) by substituting “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.
Subsec. (h)(2)(A)(ii). Pub. L. 115-97, Sec. 11002(d)(1)(B), amended clause (ii) by substituting “for ‘calendar year 2016’ in subparagraph (A)(ii)” for “for ‘calendar year 1992’ in subparagraph (B)”.
2015 —Subsec. (i). Pub. L. 114-113, Div. Q, Sec. 102(a), amended subsec. (i) by striking “and before 2018”.
Subsec. (i)(6). Pub. L. 114-113, Div. Q, Sec. 206(a)(2), amended subsec. (i) by adding par. (6).
Subsec. (i)(6)(C). Pub. L. 114-113, Div. Q, Sec. 211(a), amended par. (6) by adding subpar. (C).
Subsec. (i)(7). Pub. L. 114-113, Div. Q, Sec. 208(a)(2), amended subsec. (i) by adding par. (7).
Subsec. (g)(3). Pub. L. 114-27, Sec. 804(a)(2), amended par. (3) by striking “and” at the end of subpar. (A), by substituting “, and” for the period at the end of subpar. (B), and by adding new subpar. (C).
Subsec. (g)(8). Pub. L. 114-27, Sec. 804(a)(1), amended subsec. (g) by adding new par. (8).
2014 — Subsec. (i)(3). Pub. L. 113-295, Div. A, Sec. 209(b), amended par. (3) by substituting “For purposes of determining the Hope Scholarship Credit, subsection (f)(1)(A) shall be applied” for “Subsection (f)(1)(A)( shall be applied”.
2013 — Subsec. (i). Pub. L. 112-240, Sec. 103(a)(1), amended subsec. (i) by substituting “after 2008 and before 2018” for “in 2009, 2010, 2011, or 2012”.
Subsec. (i)(5)-(7). Pub. L. 112-240, Sec. 104(c)(2)(D)(i), amended subsec. (i) by striking par. (5) and by redesignating par. (6)-(7) as par. (5)-(6), respectively. Before being struck, par. (5) read as follows:
“(5) Credit Allowed Against Alternative Minimum Tax.—In the case of a taxable year to which section 26(a)(2) does not apply, so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit shall not exceed the excess of—
“(B) the sum of the credits allowable under this subpart (other than this subsection and sections 23, 25D and 30D) and section 27 for the taxable year.
“Any reference in this section or section 24, 25, 26, 25B, 904, or 1400C to a credit allowable under this subsection shall be treated as a reference to so much of the credit allowable under subsection (a) as is attributable to the Hope Scholarship Credit.”
Subsec. (i)(5). Pub. L. 112-240, Sec. 104(c)(2)(D)(ii), amended par. (5), after redesignation, by substituting “section 26(a)” for “section 26(a)(2) or paragraph (5), as the case may be”.
2010 — Subsec. (i). Pub. L. 111-312, Sec. 103(a)(1), amended subsec. (i) by substituting “, 2010, 2011, or 2012” for “or 2010”.
Subsec. (i)(5)(B). Pub. L. 111-148, Sec. 10909(b)(2)(C), amended subpar. (B) by substituting “25D” for “23, 25D,”.
2009 — Subsec. (i)-(j). Pub. L. 111-5, Div. B, Sec. 1004(a), redesignated subsec. (i) as subsec. (j) and added new subsec. (i).
2001 - Subsec. (e). Pub. L. 107-16, Sec. 401(g)(2)(A), amended subsec. (e). Before amendment it read as follows:
“(e) Election To Have Section Apply.--
“(1) In general.-
“No credit shall be allowed under subsection (a) for a taxable year with respect to the qualified tuition and related expenses of an individual unless the taxpayer elects to have this section apply with respect to such individual for such year.
“(2) Coordination with exclusions.-
“An election under this subsection shall not take effect with respect to an individual for any taxable year if there is in effect for such taxable year an election under section 530(d)(2)(C) (by the taxpayer or any other individual) to exclude from gross income distributions from an education individual retirement account used to pay qualified higher education expenses of the individual.”
Amendments by Pub. L. 115-141, Div. U, Sec. 101(l), effective for as in included in the provisions of the Protecting Americans from Tax Hikes Act of 2015 [Pub. L. 115-141, Div. Q] to which they relate.
Amendment by Pub. L. 115-141, Div. U, Sec. 401(b)(1), effective March 23, 2018. Sec. 401(e) of Pub. L. 115-141, provided the following savings provision:
Amendment by Pub. L. 115-97, Sec. 11002(d)(1)(B), effective for taxable years beginning after December 31, 2017.
Amendment by Pub. L. 114-113, Div. Q, Sec. 102(a), effective for taxable years beginning after the date of the enactment of this Act [Enacted: Dec. 18, 2015].
Amendment by Pub. L. 114-113, Div. Q, Sec. 206(a)(1), effective on the date of the enactment of this Act [Enacted: Dec. 18, 2015].
Amendment by Pub. L. 114-113, Div. Q, Sec. 206(a)(2), effective for any return of tax, and any amendment or supplement to any return of tax, which is filed after the date of the enactment of this Act [Enacted: Dec. 18, 2015]. Sec. 206(b)(2) of Pub. L. 114-113, Div. Q, which was retroactively struck by Pub. L. 115-141, Div. U, Sec. 101(j), had provided the following exception:
“(2) EXCEPTION FOR TIMELY-FILED 2015 RETURNS.—The amendment made by subsection (a)(2) shall not apply to any return of tax (other than an amendment or supplement to any return of tax) for any taxable year which includes the date of the enactment of this Act [Enacted: Dec. 18, 2015] if such return is filed on or before the due date for such return of tax.”
Amendment by Pub. L. 114-113, Div. Q, Sec. 208(a)(2), effective for taxable years beginning after December 31, 2015.
Amendment by Pub. L. 114-113, Div. Q, Sec. 211(a), effective for taxable years beginning after December 31, 2015.
Amendments by Pub. L. 114-27, Sec. 804(a), effective for taxable years beginning after the date of the enactment of this Act [Enacted: June 29, 2015].
Amendment by Pub. L. 113-295, Div. A, Sec. 209(b), effective as if included in the provision of the American Recovery and Reinvestment Tax Act of 2009 [Pub. L. 111-5, Sec. 1003] to which it relates [Effective for taxable years beginning after Dec. 31, 2008].
Amendments by Sec. 103(a) of Pub. L. 112-240 effective for taxable years beginning after December 31, 2012.
Amendments by Sec. 104(c)(2) of Pub. L. 112-240 effective for taxable years beginning after December 31, 2011.
Amendment by Sec. 103(a) of Pub. L. 111-312 effective for taxable years beginning after December 31, 2010.
Amendment by Sec. 10909(b) of Pub. L. 111-148 effective for taxable years beginning after December 31, 2009. Pub. L. 111-148, Sec. 10909(c), as amended by Pub. L. 111-312, Sec. 101(b)(1), provided that:
Amendments by Pub. L. 111-5, Div. B, Sec. 1004(a), effective for taxable years beginning after December 31, 2008.
Amendment by Pub. L. 107-16, Sec. 401(g)(2)(A), effective for taxable years beginning after December 31, 2001.
NOTE: Section 10909(c) of Pub. L. 111-148 provided:
“(c) UNSET PROVISION.—Each provision of law amended by this section is amended to read as such provision would read if this section had never been enacted. The amendments made by the preceding sentence shall apply to taxable years beginning after December 31, 2011.”
Effective for expenses paid after December 31, 1997 (in taxable years ending after such date), for education furnished in academic periods beginning after such date. However, Sec. 201(f)(2) provided the following exception for section 25A(a)(2):
“(2) Lifetime learning credit.--Section 25A(a)(2) of the Internal Revenue Code of 1986 shall apply to expenses paid after June 30, 1998 (in taxable years ending after such date), for education furnished in academic periods beginning after such dates.”
Section 1004(c) of Pub. L. 111-5, Div. B, as amended by Pub. L. 111-312, Sec. 103(a)(2), and Pub. L. 112-240, Sec. 103(a)(2), provided that:
“(A) MIRROR CODE POSSESSION.—The Secretary of the Treasury shall pay to each possession of the United States with a mirror code tax system amounts equal to the loss to that possession by reason of the application of section 25A(i)(6) of the Internal Revenue Code of 1986 (as added by this section) with respect to taxable years beginning after 2008 and before 2018. Such amounts shall be determined by the Secretary of the Treasury based on information provided by the government of the respective possession.
“(B) OTHER POSSESSIONS.—The Secretary of the Treasury shall pay to each possession of the United States which does not have a mirror code tax system amounts estimated by the Secretary of the Treasury as being equal to the aggregate benefits that would have been provided to residents of such possession by reason of the application of section 25A(i)(6) of such Code (as so added) for taxable years beginning after 2008 and before 2018 if a mirror code tax system had been in effect in such possession. The preceding sentence shall not apply with respect to any possession of the United States unless such possession has a plan, which has been approved by the Secretary of the Treasury, under which such possession will promptly distribute such payments to the residents of such possession.
“(2) COORDINATION WITH CREDIT ALLOWED AGAINST UNITED STATES INCOME TAXES.—Section 25A(i)(6) of such Code (as added by this section) shall not apply to a bona fide resident of any possession of the United States.
“(A) POSSESSION OF THE UNITED STATES.—For purposes of this subsection, the term “possession of the United States” includes the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands.
“(B) MIRROR CODE TAX SYSTEM.—For purposes of this subsection, the term “mirror code tax system” means, with respect to any possession of the United States, the income tax system of such possession if the income tax liability of the residents of such possession under such system is determined by reference to the income tax laws of the United States as if such possession were the United States.
“(C) TREATMENT OF PAYMENTS.—For purposes of section 1324(b)(2) of title 31, United States Code, the payments under this subsection shall be treated in the same manner as a refund due from the credit allowed under section 25A of the Internal Revenue Code of 1986 by reason of subsection (i)(6) of such section (as added by this section).”
TREASURY STUDIES REGARDING EDUCATION INCENTIVES
Section 1004(f) of Pub. L. 111-5, Div. B, provided that:
“(f) TREASURY STUDIES REGARDING EDUCATION INCENTIVES.—
“(1) STUDY REGARDING COORDINATION WITH NON-TAX STUDENT FINANCIAL ASSISTANCE.—The Secretary of the Treasury and the Secretary of Education, or their delegates, shall—
“ (A) study how to coordinate the credit allowed under section 25A of the Internal Revenue Code of 1986 with the Federal Pell Grant program under section 401 of the Higher Education Act of 1965 to maximize their effectiveness at promoting college affordability, and
“(B) examine ways to expedite the delivery of the tax credit.
“(2) STUDY REGARDING INCLUSION OF COMMUNITY SERVICE REQUIREMENTS.—The Secretary of the Treasury and the Secretary of Education, or their delegates, shall study the feasibility of requiring including community service as a condition of taking their tuition and related expenses into account under section 25A of the Internal Revenue Code of 1986.
“(3) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Secretary of the Treasury, or the Secretary's delegate, shall report to Congress on the results of the studies conducted under this paragraph.”