II 110th CONGRESS 1st Session S. 360 IN THE SENATE OF THE UNITED STATES January 23, 2007 Mr. Bingaman (for himself and Mr. Smith) 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 expand expenses which qualify for the Hope Scholarship Credit and to make the Hope Scholarship Credit and the Lifetime Learning Credit refundable.

1.

Short title

This Act may be cited as the Greater Access To Education Act of 2007.

2.

Expansion of educational expenses allowed as part of Hope Scholarship Credit

(a)

Qualified tuition and related expenses expanded To include room and board, books, supplies, and equipment

Paragraph (1) of section 25A(f) of the Internal Revenue Code of 1986 (defining qualified tuition and related expenses) is amended by adding at the end the following new subparagraph: (D)

Additional expenses allowed for Hope Scholarship Credit

For purposes of the Hope Scholarship Credit, such term shall, with respect to any academic period, include— (i)reasonable costs for such period incurred by the eligible student for room and board while attending the eligible educational institution, and (ii)fees, books, supplies, and equipment required for such period for courses of instruction at the eligible educational institution. . (b)

Hope Scholarship Credit not reduced by Federal Pell Grants and supplemental educational opportunity grants

Subsection (g) of section 25A of such Code (relating to special rules) is amended by adding at the end the following new paragraph: (8)

Pell and seog grants

For purposes of the Hope Scholarship Credit, paragraph (2) shall not apply to amounts paid for an individual as a Federal Pell Grant or a Federal supplemental educational opportunity grant under subparts 1 and 3, respectively, of part A of title IV of the Higher Education Act of 1965 (20 U.S.C. 1070a and 1070b et seq., respectively). . (c)

Expanded hope expenses not subject to information reporting requirements

Subsection (e) of section 6050S of such Code (relating to definitions) is amended by striking subsection (g)(2) and inserting subsections (f)(1)(D) and (g)(2). (d)

Effective date

The amendments made by this section shall apply to expenses paid after December 31, 2006 (in tax years ending after such date), for education furnished in academic periods beginning after such date.

3.

Hope and Lifetime Learning credits to be refundable

(a)

Credit To be refundable

Section 25A of the Internal Revenue Code of 1986 (relating to Hope and Lifetime Learning credits), as amended by section 2, is hereby moved to subpart C of part IV of subchapter A of chapter 1 of such Code (relating to refundable credits) and inserted after section 35. (b)

Technical amendments

(1)Section 36 of the Internal Revenue Code of 1986 is redesignated as section 37. (2)Section 25A of such Code (as moved by subsection (a)) is redesignated as section 36. (3)Paragraph (1) of section 36(a) of such Code (as redesignated by paragraph (2)) is amended by striking this chapter and inserting this subtitle. (4)Subparagraph (B) of section 72(t)(7) of such Code is amended by striking section 25A(g)(2) and inserting section 36(g)(2). (5)Subparagraph (A) of section 135(d)(2) of such Code is amended by striking section 25A and inserting section 36. (6)Section 221(d) of such Code is amended— (A)by striking section 25A(g)(2) in paragraph (2)(B) and inserting section 36(g)(2), (B)by striking section 25A(f)(2) in the matter following paragraph (2)(B) and inserting section 36(f)(2), and (C)by striking section 25A(b)(3) in paragraph (3) and inserting section 36(b)(3). (7)Section 222 of such Code is amended— (A)by striking section 25A in subparagraph (A) of subsection (c)(2) and inserting section 36, (B)by striking section 25A(f) in subsection (d)(1) and inserting section 36(f), and (C)by striking section 25A(g)(2) in subsection (d)(1) and inserting section 36(g)(2). (8)Section 529 of such Code is amended— (A)by striking section 25A(g)(2) in subclause (I) of subsection (c)(3)(B)(v) and inserting section 36(g)(2), (B)by striking section 25A in subclause (II) of subsection (c)(3)(B)(v) and inserting section 36, and (C)by striking section 25A(b)(3) in clause (i) of subsection (e)(3)(B) and inserting section 36(b)(3). (9)Section 530 of such Code is amended— (A)by striking section 25A(g)(2) in subclause (I) of subsection (d)(2)(C)(i) and inserting section 36(g)(2), (B)by striking section 25A in subclause (II) of subsection (d)(2)(C)(i) and inserting section 36, and (C)by striking section 25A(g)(2) in clause (iii) of subsection (d)(4)(B) and inserting section 36(g)(2). (10)Subsection (e) of section 6050S of such Code is amended by striking section 25A and inserting section 36. (11)Subparagraph (J) of section 6213(g)(2) of such Code is amended by striking section 25A(g)(1) and inserting section 36(g)(1). (12)Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting before the period or from section 36 of such Code. (13)The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by striking the item relating to section 36 and inserting the following: Sec. 36. Hope and Lifetime Learning credits. Sec. 37. Overpayments of tax. . (14)The table of sections for subpart A of such part IV is amended by striking the item relating to section 25A. (c)

Effective date

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