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

This Act may be cited as the ''Make College Affordable Act of
2003''.

SEC. 2. EXPANSION OF DEDUCTION FOR HIGHER EDUCATION EXPENSES.

(a) Amount of Deduction.--Subsection (b) of section 222 of the
Internal Revenue Code of 1986 (relating to deduction for qualified
tuition and related expenses) is amended to read as follows:
''(b) Limitations.--
''(1) Dollar limitations.--
''(A) In general.--Except as provided in paragraph
(2), the amount allowed as a deduction under subsection
(a) with respect to the taxpayer for any taxable year
shall not exceed the applicable dollar limit.
''(B) Applicable dollar limit.--The applicable
dollar limit for any taxable year shall be determined
as follows:

Applicable
''Taxable year: dollar amount:
2003.......................................... $8,000
2004 and thereafter........................... $12,000.
''(2) Limitation based on modified adjusted gross income.--
''(A) In general.--The amount which would (but for
this paragraph) be taken into account under subsection
(a) shall be reduced (but not below zero) by the amount
determined under subparagraph (B).
''(B) Amount of reduction.--The amount determined
under this subparagraph equals the amount which bears
the same ratio to the amount which would be so taken
into account as--
''(i) the excess of--
''(I) the taxpayer's modified
adjusted gross income for such taxable
year, over
''(II) $65,000 ($130,000 in the
case of a joint return), bears to
''(ii) $15,000 ($30,000 in the case of a
joint return).
''(C) Modified adjusted gross income.--For purposes
of this paragraph, the term 'modified adjusted gross
income' means the adjusted gross income of the taxpayer
for the taxable year determined--
''(i) without regard to this section and
sections 911, 931, and 933, and
''(ii) after the application of sections
86, 135, 137, 219, 221, and 469.
For purposes of the sections referred to in clause
(ii), adjusted gross income shall be determined without
regard to the deduction allowed under this section.
''(D) Inflation adjustments.--
''(i) In general.--In the case of any
taxable year beginning in a calendar year after
2003, both of the dollar amounts in
subparagraph (B)(i)(II) shall be increased by
an amount equal to--
''(I) such dollar amount,
multiplied by
''(II) the cost-of-living
adjustment determined under section
1(f)(3) for the calendar year in which
the taxable year begins, by
substituting 'calendar year 2002' for
'calendar year 1992' in subparagraph
(B) thereof.
''(ii) Rounding.--If any amount as adjusted
under clause (i) is not a multiple of $50, such
amount shall be rounded to the nearest multiple
of $50.''.
(b) Qualified Tuition and Related Expenses of Eligible Students.--
(1) In general.--Section 222(a) of the Internal Revenue
Code of 1986 (relating to allowance of deduction) is amended by
inserting ''of eligible students'' after ''expenses''.
(2) Definition of eligible student.--Section 222(d) of such
Code (relating to definitions and special rules) is amended by
redesignating paragraphs (2) through (6) as paragraphs (3) through (7),
respectively, and by inserting after paragraph (1) the following new
paragraph:
''(2) Eligible student.--The term 'eligible student' has
the meaning given such term by section 25A(b)(3).''.
(c) Deduction Made Permanent.--Title IX of the Economic Growth and
Tax Relief Reconciliation Act of 2001 (relating to sunset of provisions
of such Act) shall not apply to the amendments made by section 431 of
such Act.
(d) Effective Date.--The amendments made by this section shall
apply to payments made in taxable years beginning after December 31,
2002.

SEC. 3. CREDIT FOR INTEREST ON HIGHER EDUCATION LOANS.

(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to nonrefundable
personal credits) is amended by inserting after section 25B the
following new section:

''SEC. 25C. INTEREST ON HIGHER EDUCATION LOANS.

''(a) Allowance of Credit.--In the case of an individual, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to the interest paid by the
taxpayer during the taxable year on any qualified education loan.
''(b) Maximum Credit.--
''(1) In general.--Except as provided in paragraph (2), the
credit allowed by subsection (a) for the taxable year shall not
exceed $1,500.
''(2) Limitation based on modified adjusted gross income.--
''(A) In general.--If the modified adjusted gross
income of the taxpayer for the taxable year exceeds
$50,000 ($100,000 in the case of a joint return), the
amount which would (but for this paragraph) be
allowable as a credit under this section shall be
reduced (but not below zero) by the amount which bears
the same ratio to the amount which would be so
allowable as such excess bears to $20,000 ($40,000 in
the case of a joint return).
''(B) Modified adjusted gross income.--The term
'modified adjusted gross income' means adjusted gross
income determined without regard to sections 911, 931,
and 933.
''(C) Inflation adjustment.--In the case of any
taxable year beginning after 2003, the $50,000 and
$100,000 amounts referred to in subparagraph (A) shall
be increased by an amount equal to--
''(i) such dollar amount, multiplied by
''(ii) the cost-of-living adjustment
determined under section (1)(f)(3) for the
calendar year in which the taxable year begins,
by substituting '2002' for '1992'.
''(D) Rounding.--If any amount as adjusted under
subparagraph (C) is not a multiple of $50, such amount
shall be rounded to the nearest multiple of $50.
''(c) Dependents Not Eligible for Credit.--No credit shall be
allowed by this section to an individual for the taxable year if a
deduction under section 151 with respect to such individual is allowed
to another taxpayer for the taxable year beginning in the calendar year
in which such individual's taxable year begins.
''(d) Limit on Period Credit Allowed.--A credit shall be allowed
under this section only with respect to interest paid on any qualified
education loan during the first 60 months (whether or not consecutive)
in which interest payments are required. For purposes of this
paragraph, any loan and all refinancings of such loan shall be treated
as 1 loan.
''(e) Definitions.--For purposes of this section--
''(1) Qualified education loan.--The term 'qualified
education loan' has the meaning given such term by section
221(e)(1).
''(2) Dependent.--The term 'dependent' has the meaning
given such term by section 152.
''(f) Special Rules.--
''(1) Denial of double benefit.--No credit shall be allowed
under this section for any amount taken into account for any
deduction under any other provision of this chapter.
''(2) Married couples must file joint return.--If the
taxpayer is married at the close of the taxable year, the
credit shall be allowed under subsection (a) only if the
taxpayer and the taxpayer's spouse file a joint return for the
taxable year.
''(3) Marital status.--Marital status shall be determined
in accordance with section 7703.''.
(b) Conforming Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by inserting after the item relating to section 25B the
following new item:

''Sec. 25C. Interest on higher education
loans.''.
(c) Effective Date.--The amendments made by this section shall
apply to any qualified education loan (as defined in section 25C(e)(1)
of the Internal Revenue Code of 1986, as added by this section)
incurred on, before, or after the date of the enactment of this Act,
but only with respect to any loan interest payment due after December
31, 2002.
A:
Make College Affordable Act of 2003 - Amends the Internal Revenue Code to: (1) increase the deduction for higher education expenses by increasing the applicable dollar limit; and (2) allow a limited credit for interest paid on higher education loans.