109 HR 5982 IH: To amend the Internal Revenue Code of 1986 to allow a U.S. House of Representatives 2006-07-28 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 109th CONGRESS 2d Session H. R. 5982 IN THE HOUSE OF REPRESENTATIVES July 28, 2006 Mr. Boswell 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 credit against tax for qualified tuition and related expenses.

1.

Short title

This Act may be cited as the Universal College Credit Act.

2.

Universal college credit

(a)

In general

Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section:

25E.

Universal college credit

(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 qualified tuition and related expenses paid by the taxpayer during the taxable year. (b)

Dollar limitation

The amount allowed as a credit under subsection (a) with respect to each individual for whom qualified tuition and related expenses are paid by the taxpayer during the taxable year shall not exceed $4,000. (c)

Credit allowed only for 4 years of undergraduate education and 6 years of graduate education

An election to have this section apply with respect to any individual for whom qualified tuition and related expenses are paid by the taxpayer during the taxable year may not be made for any taxable year if such an election (by the taxpayer or any other individual) is in effect with respect to— (1)the undergraduate education expenses of such individual for any 4 prior taxable years, or (2)the graduate education expenses of such individual for any 6 prior taxable years. (d)

Denial of double benefit

No credit shall be allowed under this section with respect to the qualified tuition and related expenses of any individual if a credit or deduction is allowed under any other provision of this chapter with respect to such expenses. (e)

Definitions and special rules

For purposes of this section— (1)

Qualified tuition and related expenses

(A)

In general

The term qualified tuition and related expenses means tuition and fees required for the enrollment or attendance of— (i)the taxpayer, (ii)the taxpayer’s spouse, or (iii)any dependent of the taxpayer with respect to whom the taxpayer is allowed a deduction under section 151, at an eligible educational institution for courses of instruction of such individual at such institution.(B)

Exception for education involving sports, etc

Such term does not include expenses with respect to any course or other education involving sports, games, or hobbies, unless such course or other education is part of the individual's degree program. (C)

Exception for nonacademic fees

Such term does not include student activity fees, athletic fees, insurance expenses, or other expenses unrelated to an individual's academic course of instruction. (2)

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 (20 U.S.C. 1088), as in effect on the date of the enactment of this section, and (B)which is eligible to participate in a program under title IV of such Act. (3)

Undergraduate education expenses

The term undergraduate education expenses means the qualified tuition and related expenses paid by the taxpayer during a taxable year for an individual enrolled in an undergraduate course of study during such taxable year. (4)

Graduate education expenses

The term graduate education expenses means the qualified tuition and related expenses paid by the taxpayer during a taxable year for an individual enrolled in an graduate or professional course of study during such taxable year. (5)

Adjustment for certain scholarships, etc

The amount of qualified tuition and related expenses otherwise taken into account under subsection (a) with respect to an individual for an academic period shall be reduced 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 individual’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. (f)

Election not to have section apply

A taxpayer may elect not to have this section apply with respect to an individual for any taxable year.

. (b)

Clerical amendment

The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25D the following new item: Sec. 25E. Universal college credit. . (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2006.