[Congressional Record Volume 150, Number 11 (Tuesday, February 3, 2004)]
[Senate]
[Page S541]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GRASSLEY:
  S. 2050. A bill to repeal the sunset of the Economic Growth and Tax 
Relief Reconciliation Act of 2001 with respect to the affordable 
education provisions of such Act, and for other purposes; to the 
Committee on Finance.
  Mr. GRASSLEY. Mr. President, I am introducing two education tax bills 
today. These bills will help us make permanent the $30 billion in 
education tax incentives that were contained in the 2001 tax bill.
  The first bill will extend and make permanent the tuition deduction 
that was enacted in the Economic Growth and Tax Relief Reconciliation 
Act of 2001, Public Law 107-16, or EGTRRA. A lot of people think we 
don't spend enough money on education, but they also don't think we 
should make the 2001 tax cuts permanent. I don't know how they can 
justify that position. The education tax incentives in the 2001 tax 
bill have done a whole lot of good. The tuition tax deduction is 
available only through December 31, 2005. The cost of the provision for 
those four years was about $10 billion. So you can see that it was very 
expensive.
  For parents struggling to send their children to college, the tuition 
tax deduction has been very important. Some of them probably wish it 
were set at a higher level, but at between $2,000 and $4,000 depending 
on your income, it is still a beneficial tax incentive for the middle 
class.
  The second bill that I am introducing today will make the rest of the 
EGTRRA education tax provisions permanent, as well as the deduction for 
teacher classroom materials that was passed in the stimulus package of 
March 2002. That provision expired at the end of last year so it is 
very important that we enact it on a permanent basis and do so as soon 
as practicable.
  I hope my colleagues will join me in sponsoring these bills and will 
agree to consider them and pass them in the Senate in the next month or 
two.
  Mr. President, I ask unanimous consent that the text of the bills be 
printed in the Record.
  There being no objection, the bills were ordered to be printed in the 
Record, as follows:

                                S. 2048

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

     SECTION 1. 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).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2003.
                                  ____


                                S. 2050

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

     SECTION 1. REPEAL OF APPLICABILITY OF SUNSET OF THE ECONOMIC 
                   GROWTH AND TAX RELIEF RECONCILIATION ACT OF 
                   2001 WITH RESPECT TO AFFORDABLE EDUCATION 
                   PROVISIONS OF SUCH ACT.

       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 subtitles A, B, and C of title IV 
     (relating to affordable education provisions).''.

     SEC. 2. PERMANENT DEDUCTION FOR CERTAIN EXPENSES OF SCHOOL 
                   TEACHERS.

       (a) In General.--Section 62(a)(2)(D) of the Internal 
     Revenue Code of 1986 (relating to certain expenses of 
     elementary and secondary school teachers) is amended by 
     striking ``In the case of taxable years beginning during 2002 
     or 2003, the deductions'' and inserting ``The deductions''.
       (b) Effective Date.--The amendment made by this section 
     shall apply to expenses paid or incurred after December 31, 
     2003.
                                 ______