[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 143 Introduced in Senate (IS)]







111th CONGRESS
  1st Session
                                 S. 143

  To amend the Internal Revenue Code of 1986 to provide for a college 
                        opportunity tax credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 6, 2009

   Mr. Kerry 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 provide for a college 
                        opportunity tax credit.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``College Opportunity Tax Credit Act 
of 2009''.

SEC. 2. COLLEGE OPPORTUNITY TAX CREDIT.

    (a) In General.--Section 25A of the Internal Revenue Code of 1986 
(relating to Hope scholarship credit) is amended by redesignating 
subsection (i) as subsection (j) and by inserting after subsection (h) 
the following new subsection:
    ``(i) College Opportunity Tax Credit.--In the case of any taxable 
year beginning in 2009 or 2010--
            ``(1) Hope scholarship credit.--
                    ``(A) Increase in credit.--The Hope scholarship 
                credit shall be an amount equal to the sum of--
                            ``(i) 100 percent of so much of the 
                        qualified tuition and related expenses paid by 
                        the taxpayer during the taxable year (for 
                        education furnished to the eligible student 
                        during any academic period beginning in such 
                        taxable year) as does not exceed $2,000, plus
                            ``(ii) 50 percent of such expenses so paid 
                        as exceeds $2,000 but does not exceed $6,000.
                    ``(B) Hope scholarship credit made refundable.--
                            ``(i) In general.--The aggregate credits 
                        allowed under subpart C shall be increased by 
                        the amount of the credit which would be allowed 
                        under this section--
                                    ``(I) by reason of subsection 
                                (a)(1) (after the application of this 
                                paragraph), and
                                    ``(II) without regard to this 
                                subparagraph and the limitation under 
                                section 26(a) or paragraph (3), as the 
                                case may be.
                            ``(ii) Treatment of credit.--The amount of 
                        the credit allowed under this subparagraph 
                        shall not be treated as a credit allowed under 
                        this subpart and shall reduce the amount of 
                        credit otherwise allowable under subsection (a) 
                        without regard to section 26(a) or paragraph 
                        (3), as the case may be.
                    ``(C) Credit allowed for 4 years.--Subparagraphs 
                (A) of subsection (b)(2) shall be applied by 
                substituting `4' for `2'.
                    ``(D) Credit allowed for any year of post-secondary 
                education.--Subsection (b)(2) shall be applied without 
                regard to subparagraph (C).
            ``(2) Lifetime learning credit.--
                    ``(A) In general.--In the case of any student for 
                whom an election is in effect under this paragraph for 
                any taxable year, the Lifetime Learning Credit for such 
                taxable year is an amount equal to the sum of--
                            ``(i) 40 percent of so much of the 
                        qualified tuition and related expenses paid by 
                        the taxpayer during the taxable year (for 
                        education furnished to the student during any 
                        academic period beginning in such taxable year) 
                        as does not exceed $1,000, plus
                            ``(ii) 20 percent of such expenses so paid 
                        as exceeds $1,000 but does not exceed the 
                        applicable limit.
                    ``(B) Applicable limit.--For purposes of 
                subparagraph (A)(ii), the applicable limit for any 
                taxable year is an amount equal to 3 times the dollar 
                amount in effect under subparagraph (A)(i) for such 
                taxable year.
                    ``(C) Special rules for determining expenses.--
                            ``(i) Coordination with hope scholarship 
                        credit.--The qualified tuition and related 
                        expenses taken into account with respect to a 
                        student under subsection (a)(1) for the taxable 
                        year shall not be taken into account under this 
                        paragraph.
                            ``(ii) Expenses for job skills courses 
                        allowed.--For purposes of subparagraph (A), 
                        qualified tuition and related expenses shall 
                        include expenses described in subsection (f)(1) 
                        with respect to any course of instruction at an 
                        eligible educational institution to acquire or 
                        improve job skills of the student.
            ``(3) Limitation based on amount of tax.--In the case of a 
        taxable year to which section 26(a)(2) does not apply, the 
        credit allowed under subsection (a) for the taxable year shall 
        not exceed the excess of--
                    ``(A) the sum of the regular tax liability (as 
                defined in section 26(b)) plus the tax imposed by 
                section 55, over
                    ``(B) the sum of the credits allowed under this 
                subpart (other than this section and sections 23, 24, 
                and 25B) and section 27 for the taxable year.''.
    (b) Technical Amendment.--Section 1324(b) of title 31, United 
States Code, is amended by inserting ``25B(i)(1)(B)'' before ``35''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2008.
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