[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5262 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 5262

 To amend the Internal Revenue Code of 1986 to allow a deduction from 
 gross income for uncompensated education costs incurred by veterans' 
 survivors and dependents who are in receipt of educational assistance 
           under chapter 35 of title 38, United States Code.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 7, 2004

 Mr. Fossella 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 deduction from 
 gross income for uncompensated education costs incurred by veterans' 
 survivors and dependents who are in receipt of educational assistance 
           under chapter 35 of title 38, United States Code.

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

SECTION 1. FINDINGS.

    The Congress finds that--
            (1) the United States owes a debt to those men and women 
        who have lost their lives or have become completely and 
        permanently disabled in the line of duty while defending the 
        Nation in the war on terrorism;
            (2) the United States owes a debt to the families of these 
        fallen heroes for their sacrifices; and
            (3) one way to begin repaying this debt would be to ensure 
        that the children of these fallen heroes have access to higher 
        education.

SEC. 2. DEDUCTION OF EDUCATION COSTS OF VETERANS' SURVIVORS AND 
              DEPENDENTS.

    (a) In General.--Part VII of subchapter B of chapter 1 of the 
Internal Revenue Code of 1986 (relating to additional itemized 
deductions for individuals) is amended by redesignating section 224 as 
section 225 and by inserting after section 223 the following new 
section:

``SEC. 224. EDUCATION COSTS OF VETERANS' SURVIVORS AND DEPENDENTS.

    ``(a) Deduction Allowed.--In the case of an individual, there shall 
be allowed as a deduction for the taxable year an amount equal to the 
amount paid by the taxpayer during the taxable year (for education 
furnished to the eligible person during any academic period beginning 
in such taxable year) for qualified education expenses.
    ``(b) Eligible Person.--For purposes of subsection (a), the term 
`eligible person' has the meaning given such term by section 3501(a)(1) 
of title 38, United States Code.
    ``(c) Qualified Education Expenses.--For purposes of subsection 
(a)--
            ``(1) In general.--The term `qualified education expenses' 
        means expenses for educational assistance to which the eligible 
        person would be entitled for a month under chapter 35 of title 
        38, United States Code, but for the maximum amount of 
        educational assistance allowance payable for such month under 
        section 3532 of such chapter.
            ``(2) Coordination with other education-related benefits.--
        The amount of qualified education expenses for any taxable year 
        shall be reduced by the sum of--
                    ``(A) the amount excluded from gross income under 
                section 127, 135, 529, or 530 by reason of such 
                expenses, and
                    ``(B) the amount of any scholarship, allowance, or 
                payment described in section 25A(g)(2).''.
    (b) Deduction Allowed Whether or not Individual Itemizes Other 
Deductions.--Subsection (a) of section 62 of such Code is amended by 
inserting after paragraph (19) the following new paragraph:
            ``(20) Education costs of veterans' survivors and 
        dependents.--The deduction allowed by section 224.''.
    (c) Clerical Amendment.--The table of sections for part VII of 
subchapter B of chapter 1 of such Code is amended by striking the last 
item and inserting the following new items:

``Sec. 224. Education costs of veterans' survivors and dependents.
``Sec. 225. Cross reference.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000, for amounts 
paid or incurred for education furnished after September 11, 2001.
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