[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1677 Introduced in Senate (IS)]








109th CONGRESS
  1st Session
                                S. 1677

 To amend the Internal Revenue Code of 1986 to permanently extend the 
deduction for college tuition expenses and to expand such deduction to 
                      include expenses for books.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 12, 2005

  Mr. Schumer introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to permanently extend the 
deduction for college tuition expenses and to expand such deduction to 
                      include expenses for books.

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

SECTION 1. PERMANENT EXTENSION OF TUITION DEDUCTION AND EXPANSION TO 
              INCLUDE COLLEGE BOOK EXPENSES.

    (a) In General.--Section 222(b)(2) of the Internal Revenue Code of 
1986 (relating to applicable dollar limit) is amended by striking 
subparagraphs (A) and (B) and inserting the following new 
subparagraphs:
                    ``(A) In general.--The applicable dollar amount 
                with respect to qualified tuition and related expenses 
                described in subsection (d)(1)(A)(i) shall be equal 
                to--
                            ``(i) in the case of a taxpayer whose 
                        adjusted gross income for the taxable year does 
                        not exceed $65,000 ($130,000 in the case of a 
                        joint return), $4,000,
                            ``(ii) in the case of a taxpayer whose 
                        adjusted gross income for the taxable year does 
                        not exceed $80,000 ($160,000 in the case of a 
                        joint return), $2,000, and
                            ``(iii) in the case of any other taxpayer, 
                        zero.
                    ``(B) Books.--The applicable dollar amount with 
                respect to qualified tuition and related expenses 
                described in subsection (d)(1)(A)(ii) shall be equal 
                to--
                            ``(i) in the case of a taxpayer whose 
                        adjusted gross income for the taxable year does 
                        not exceed $65,000 ($130,000 in the case of a 
                        joint return), $1,000,
                            ``(ii) in the case of a taxpayer whose 
                        adjusted gross income for the taxable year does 
                        not exceed $80,000 ($160,000 in the case of a 
                        joint return), $500, and
                            ``(iii) in the case of any other taxpayer, 
                        zero.''.
    (b) Expansion of Related Expenses.--Paragraph (1) of section 222(d) 
of the Internal Revenue Code of 1986 (relating to definitions and 
special rules) is amended to read as follows:
            ``(1) Qualified tuition and related expenses.--
                    ``(A) In general.--The term `qualified tuition and 
                related expenses'--
                            ``(i) has the meaning given such term by 
                        section 25(f), and
                            ``(ii) includes books (within the meaning 
                        of section 529(e)(3)(A)(i)).
                    ``(B) Special rule.--Such expenses shall be reduced 
                in the same manner as under section 25A(g)(2).''.
    (c) Deduction Made Permanent.--Section 222 of the Internal Revenue 
Code of 1986 is amended by striking subsection (e).
    (d) Effective Date.--The amendments made by this section shall 
apply to payments made in taxable years beginning after December 31, 
2005.
                                 <all>