Q: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
SECTION 1. SHORT TITLE.

This Act may be cited as the ''American Opportunity Tax Credit Act
of 2009''.

SEC. 2. REFUNDABLE CREDIT FOR HIGHER EDUCATION EXPENSES.

(a) In General.--Subpart C of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to refundable credits)
is amended by inserting after section 36 the following new section:

''SEC. 36A. HIGHER EDUCATION EXPENSES.

''(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
subtitle for the taxable year an amount equal to 100 percent of so much
of the higher education expenses paid by the taxpayer during the
taxable year (with respect to attendance of the eligible student at an
eligible educational institution during any academic period beginning
in such taxable year) as does not exceed $4,000.
''(b) Limitations.--
''(1) Higher education expense limitation.--The amount of
higher education expenses taken into account under subsection
(a) with respect to an individual for an academic period shall
not exceed the individual's cost of attendance (as defined in
section 472 of the Higher Education Act of 1965, as in effect
on the date of the enactment of this section) for such period
at the eligible educational institution with respect to which
such higher education expenses were paid.
''(2) Lifetime credit limitation.--The amount of the credit
allowed under subsection (a) for any taxable year with respect
to any eligible student shall not exceed the excess of--
''(A) $28,000, over
''(B) the aggregate credit allowed under subsection
(a) with respect to such eligible student for all prior
taxable years.
''(c) Definitions.--For purposes of this subsection--
''(1) Eligible student.--The term 'eligible student' means,
with respect to any academic period, any individual who 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 of
the enactment of the Taxpayer Relief Act of 1997.
''(2) Higher education expense.--The term 'higher education
expense' means any expense of a type which is taken into
account in determining the cost of attendance (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) the taxpayer,
''(B) the taxpayer's spouse, or
''(C) any dependent of the taxpayer with respect to
whom the taxpayer is allowed a deduction under section
151,
at an eligible educational institution with respect to the
attendance of such individual at such institution for the
academic period for which the credit under this section is
being determined.
''(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.
''(d) Special Rules.--
''(1) Identification requirement.--No credit shall be
allowed under subsection (a) to a taxpayer with respect to an
eligible student unless the taxpayer includes the name and
taxpayer identification number of such student on the return of
tax for the taxable year.
''(2) Adjustment for certain scholarships.--The amount of
higher education 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 individual which are allocable to such period as--
''(A) a qualified scholarship which is excludable
from gross income under section 117,
''(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, and
''(C) a payment (other than a gift, bequest,
devise, or inheritance within the meaning of section
102(a)) for such student's educational expenses, or
attributable to such individual's enrollment at an
eligible educational institution, which is excludable
from gross income under any law of the United States.
''(3) Coordination with section 25a.--The amount of higher
education 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 amount of such expenses which are taken
into account in determining the credit under section 25A.
''(4) Treatment of expenses paid by dependent.--If a
deduction under section 151 with respect to an individual is
allowed to another taxpayer for a taxable year beginning in the
calendar year in which such individual's taxable year begins--
''(A) no credit shall be allowed under subsection
(a) to such individual for such individual's taxable
year, and
''(B) higher education 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.
''(5) Treatment of certain prepayments.--If higher
education expense is 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.
''(6) Denial of double benefit.--No credit shall be allowed
under this section for any expense for which deduction is
allowed under any other provision of this chapter.
''(7) 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.
''(8) Nonresident aliens.--If the taxpayer is a nonresident
alien individual for any portion of the taxable year, this
section shall apply only if such individual is treated as a
resident alien of the United States for purposes of this
chapter by reason of an election under subsection (g) or (h) of
section 6013.
''(e) Community Service Requirement.--
''(1) In general.--No credit shall be allowed under this
section for any taxable year with respect to the higher
education expenses of a student unless the student satisfies
the community service requirement of paragraph (2) for such
year. The community service requirement of paragraph (2) shall
be treated as satisfied only if such service is verified under
regulations prescribed by the Secretary of Education.
''(2) Requirement.--The community service requirement of
this paragraph is satisfied for any taxable year only if the
student completes at least 100 hours of volunteer service
during such year for--
''(A) a governmental unit,
''(B) a hospital, or
''(C) an organization described in section
501(c)(3) and exempt from tax under section 501(a).
For purposes of the preceding sentence, service shall not fail
to be treated as volunteer service by reason of receiving a
stipend for living expenses, but only if the aggregate stipends
for the year does not exceed $600.
''(3) Exception for death or disability.--Paragraph (1)
shall not apply if the failure to meet the community service
requirement of paragraph (2) is by reason of the death or
disability of the student.
''(f) Credit Paid Directly to Educational Institution.--The
Secretary of Education shall prescribe regulations under which--
''(1) a taxpayer may certify, before making payment of a
higher education expense to an eligible educational
institution, that the taxpayer reasonably believes that credit
would be allowed under this section for such payment were it
made,
''(2) the amount of credit, were such payment made, shall
be paid to such institution and treated as payment of such
expense, and
''(3) amounts paid under this subsection in excess of the
proper amount of credit are recaptured from the taxpayer.
''(g) Election Not To Have Section Apply.--A taxpayer may elect not
to have this section apply with respect to the higher education
expenses of an individual for any taxable year.
''(h) 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 determining the amount
of such credit.''.
(b) Conforming Amendments.--
(1) Paragraph (2) of section 1324(b) of title 31, United
States Code, is amended by inserting ''36A,'' after ''36,''.
(2) The table of sections for subpart C of part IV of
subchapter A of chapter 1 of such Code is amended by inserting
after the item relating to section 36 the following new item:

''Sec. 36A. Higher education expenses.''.
(c) Effective Date.--The amendments made by this section shall
apply to expenses paid after December 31, 2009, for education furnished
in academic periods beginning after such date.
A:
American Opportunity Tax Credit Act of 2009 - Amends the Internal Revenue Code to allow a refundable tax credit for higher education expenses up to $4,000.