[Congressional Record Volume 148, Number 111 (Thursday, September 5, 2002)]
[Senate]
[Pages S8306-S8307]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. Smith of Oregon:
  S. 2909. A bill to amend the Internal Revenue Code of 1986 to make 
permanent the deduction for qualified tuition and related expenses and 
to repeal the sunset of the Economic Growth and Tax Relief 
Reconciliation Act of 2001 with respect to such deduction and the 
extension of the exclusion for employer-provided education assistance; 
to the Committee on Finance.
  Mr. SMITH of Oregon. Mr. President, I come to the floor today to 
introduce the College Tuition Relief Act of 2002, a bill that will go a 
long way toward easing the burden of college tuition fees for parents 
and students across the country.
  When President Bush signed the Economic Growth and Tax Relief 
Reconciliation Act last year, millions of hard working Americans 
finally got to keep more of their own money so that they could spend it 
in ways that helped their families most. Too often forgotten, though, 
is the fact that none of the provisions in that important tax relief 
bill is permanent. All will expire in a few short years, and, unless we 
act soon, the American taxpayers will have to adjust their budgets to 
account for higher taxes once again.
  Included in last year's tax relief legislation were two provisions 
that are of the utmost importance to families and young students 
struggling to pay the ever-increasing costs of higher education. The 
first allows taxpayers to deduct as much as $4000 of their college 
tuition expenses from their taxes every year; the second allows 
individuals to exclude as much as $5250 in employer-provided education 
assistance from their taxes, a critically important benefit for a great 
many Americans attempting to balance school with work, family, and 
limited budgets.
  Because of an unfortunate quirk in the law, both of these provisions 
will expire after only a few years, and future generations of young 
people will not receive the benefits of a more affordable education. 
The solution to this problem is simple: we should make these provisions 
permanent. My bill does just that. The College Tuition Relief Act of 
2002 will simply ensure that future college students will be able to 
count on their government to support them as they work towards 
attaining a good education.
  The two provisions that this bill will make a permanent part of our 
tax law have always received broad bipartisan support, and I am 
confident that none of us wants to take back the help we are currently 
giving to college students

[[Page S8307]]

and the families who so often contribute to their tuition. Even my 
colleagues who did not vote for last year's tax relief should find it 
easy to support this bill and, along with it, our Nation's college 
students.
  I ask unanimous consent that the text of the Bill be printed in the 
Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:
       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 Tuition Relief Act 
     of 2002''.

     SEC. 2. PERMANENT DEDUCTION FOR QUALIFIED TUITION AND RELATED 
                   EXPENSES.

       (a) Permanent Deduction.--
       (1) In general.--Section 222 of the Internal Revenue Code 
     of 1986 (relating to qualified tuition and related expenses) 
     is amended by striking subsection (e).
       (2) Conforming amendment.--Subparagraph (B) of section 
     222(b)(2) of such Code (relating to applicable dollar limit) 
     is amended by striking ``2004 and 2005.--In the case of a 
     taxable year beginning in 2004 or 2005,'' and inserting 
     ``2004 and thereafter.--In the case of any taxable year 
     beginning after 2003,''.
       (b) Repeal of Suspension.--Section 901 of the Economic 
     Growth and Tax Relief Reconciliation Act of 2001 is amended 
     by adding at the end the following new subsection:
       ``(c) Exception.--Subsection (a) shall not apply to the 
     amendments made by section 431 (relating to qualified tuition 
     and related expenses).''.

     SEC. 3. REPEAL OF APPLICABILITY OF SUNSET OF THE ECONOMIC 
                   GROWTH AND TAX RELIEF RECONCILIATION ACT OF 
                   2001 WITH RESPECT TO EXTENSION OF EXCLUSION FOR 
                   EMPLOYER-PROVIDED EDUCATIONAL ASSISTANCE.

       Section 901 of the Economic Growth and Tax Relief 
     Reconciliation Act of 2001 is amended by adding at the end 
     the following new subsection:
       ``(c) Exception.--Subsection (a) shall not apply to the 
     amendments made by section 411 (relating to modifications to 
     extension of exclusion for employer-provided educational 
     assistance).''.
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