110 HR 3388 IH: College Affordability Tax Relief Act U.S. House of Representatives 2007-08-03 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 110th CONGRESS 1st Session H. R. 3388 IN THE HOUSE OF REPRESENTATIVES August 3, 2007 Mrs. Gillibrand (for herself and Mr. Kuhl of New York) 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 increase and make permanent the deduction for tuition and related expenses.

1.

Short title

This Act may be cited as the College Affordability Tax Relief Act of 2007.

2.

Deduction for tuition and related expenses increased and made permanent

(a)

Increased deduction

Paragraph (2) of section 222(b) of the Internal Revenue Code of 1986 (relating to applicable dollar limit) is amended by striking subparagraphs (A) and (B) and by inserting the following new subparagraphs: (A)

In general

For purposes of paragraph (1), the applicable dollar amount shall be— (i)$10,000 in the case of a taxpayer whose adjusted gross income for the taxable year does not exceed $50,000, (ii)$6,000 in the case of a taxpayer whose adjusted gross income for the taxable year exceeds $50,000 but does not exceed $65,000, (iii)$3,000 in the case of a taxpayer whose adjusted gross income for the taxable year exceeds $65,000 but does not exceed $80,000, and (iv)zero in the case of a taxpayer whose adjusted gross income for the taxable year exceeds $80,000. (B)

Joint returns

In the case of a joint return, subparagraph (A) shall be applied by doubling the adjusted gross income amounts otherwise applicable thereunder for the taxable year. . (b)

Income amounts adjusted for inflation

Paragraph (2) of section 222(b) of such Code is amended by adding at the end the following new subparagraph: (D)

Income amounts adjusted for inflation

In the case of any taxable year beginning in a calendar year after 2008, the $50,000, $65,000, and $80,000 amounts 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, determined by substituting calendar year 2007 for calendar year 1992 in subparagraph (B) thereof. Any increase determined under the preceding sentence shall be rounded to the nearest multiple of $500.. (c)

Deduction made permanent

(1)Section 222 of such Code is amended by striking subsection (e) (relating to termination). (2)Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 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 taxable years beginning after December 31, 2007.