[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4912 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 4912

     To amend the Internal Revenue Code of 1986 to expand the Hope 
Scholarship Credit to allow a credit without limitation for 50 percent 
                     of higher education expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 22, 2004

 Mr. Ackerman 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 expand the Hope 
Scholarship Credit to allow a credit without limitation for 50 percent 
                     of higher education expenses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Affordable College Tuition Act of 
2004''.

SEC. 2. EXPANSION OF HOPE SCHOLARSHIP CREDIT TO 50 PERCENT OF QUALIFIED 
              TUITION EXPENSES.

    (a) In General.--Subsection (b) of section 25A of the Internal 
Revenue Code of 1986 (relating to Hope scholarship credit) is amended 
to read as follows:
    ``(b) Hope Scholarship Credit.--
            ``(1) Per student credit.--In the case of any eligible 
        student for whom an election is in effect under this section 
        for any taxable year, the Hope Scholarship Credit is an amount 
        equal to 50 percent of the qualified tuition and related 
        expenses paid by the taxpayer during the taxable year (for 
        education furnished to the eligible student during any academic 
        period beginning in such taxable year).
            ``(2) Credit allowed for year only if individual is at 
        least \1/2\ time student for portion of year.--The Hope 
        Scholarship Credit under subsection (a)(1) shall not be allowed 
        for a taxable year with respect to the qualified tuition and 
        related expenses of an individual unless such individual is an 
        eligible student for at least one academic period which begins 
        during such year.
            ``(3) Eligible student.--For purposes of this subsection, 
        the term `eligible student' means, with respect to any academic 
        period, a student who--
                    ``(A) 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 this section, and
                    ``(B) is carrying at least \1/2\ the normal full-
                time work load for the course of study the student is 
                pursuing.''.
    (b) Adjusted Gross Income Limitation not to Apply to Hope 
Scholarship Credit.--Paragraph (1) of section 25A(d) of such Code 
(relating to limitation based on modified adjusted gross income) is 
amended--
            (1) in the text by striking ``subsection (a)'' and 
        inserting ``subsection (a)(2)'', and
            (2) in the heading by inserting ``of Lifetime Learning 
        Credit''.
    (c) Conforming Amendment.--Subsection (h) of such section (relating 
to inflation adjustments) is amended to read as follows:
    ``(h) Inflation Adjustments of Income Limits Applicable to Lifetime 
Learning Credit.--
            ``(1) 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--
                    ``(A) such dollar amount, multiplied by
                    ``(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 1992' in 
                subparagraph (B) thereof.
            ``(2) Rounding.--If any amount as adjusted under paragraph 
        (1) is not a multiple of $1,000, such amount shall be rounded 
        to the next lowest multiple of $1,000.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to expenses paid after December 31, 2004 (in taxable years ending 
after such date), for education furnished in academic periods beginning 
after such date.
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