1.This Act may be cited as the
Higher Education Affordability and
Equity Act of 2010
.
2.Expansion of
deduction for interest on education loans
(a)Repeal of Dollar
Limitation; Increase in Phaseout Beginning PointSubsection (b)
of section 221 of the Internal Revenue Code of 1986 (relating to maximum
deduction) is amended to read as follows:
(b)Limitation Based
on Modified Adjusted Gross Income
(1)The amount which would (but for this subsection) be
allowable as a deduction under this section shall be reduced (but not below
zero) by the amount determined under paragraph (2).
(2)The amount determined under this paragraph is the
amount which bears the same ratio to the amount which would be so taken into
account as—
(A)the excess
of—
(i)the taxpayer’s
modified adjusted gross income for such taxable year, over
(ii)$100,000
($200,000 in the case of a joint return), bears to
(B)$15,000 ($30,000
in the case of a joint return).
(3)Modified
adjusted gross incomeThe term modified adjusted gross
income means adjusted gross income determined—
(A)without regard to
this section and sections 199, 222, 911, 931, and 933, and
(B)after application
of sections 86, 135, 137, 219, and
469.
.
(b)Section 221(f)(1) of such Code is amended to read as
follows:
(1)In the case of a taxable year beginning after 2010, the
$100,000 and $200,000 amounts in subsection (b) shall each be increased by an
amount equal to—
(A)such dollar
amount, multiplied by
(B)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
2009
for calendar year 1992
in subparagraph (B)
thereof.
.
(c)The amendments made by this section shall apply to taxable
years beginning after December 31, 2009.
3.Education savings
accounts
(a)Increase in
Allowable Contributions
(1)Clause (iii) of section 530(b)(1)(A) of the Internal
Revenue Code of 1986 is amended by striking $2,000
and inserting
$5,000
.
(2)Section 4973(e)(1)(A) of such Code is amended by
striking $2,000
and inserting $5,000
.
(b)Subsection
(h) of section 530 of such Code is amended by striking the period at the end of
the last sentence and inserting , except that reports shall be so filed
and furnished for any calendar year not later than June 30 of the following
year.
.
(c)The amendments made by this section shall apply to taxable
years beginning after December 31, 2009.
4.Allowance of
room, board, and special needs services in the case of scholarships and tuition
reduction programs with respect to higher education
(a)Paragraph (1) of section 117(b) of the Internal Revenue
Code of 1986 (defining qualified scholarship) is amended by inserting before
the period at the end the following: or, in the case of enrollment or
attendance at an eligible educational institution, for qualified higher
education expenses.
.
(b)Subsection
(b) of section 117 of such Code is amended by adding at the end the following
new paragraph:
(3)Qualified higher
education expenses; eligible educational institutionThe terms qualified higher education
expenses and eligible educational institution have the
meanings given such terms in section
529(e).
.
(c)Tuition
reduction programsParagraph (5) of section 117(d) of such Code
(relating to special rules for teaching and research assistants) is amended by
striking shall be applied as if it did not contain the phrase
(below the graduate level)
.
and
inserting
shall be
applied—(A)as if it did not
contain the phrase (below the graduate level)
, and
(B)by substituting
qualified higher education expenses
for tuition
the second place it
appears.
.
(d)The amendments made by this section shall apply to expenses
paid after December 31, 2009 (in taxable years ending after such date), for
education furnished in academic periods beginning after such date.
5.Repeal of EGTRRA
sunset applicability to certain education provisionsTitle IX of the Economic Growth and Tax
Relief Reconciliation Act of 2001 (relating to sunset of provisions of such
Act) shall not apply to sections 401 and 412 of such Act.