[Congressional Record Volume 150, Number 109 (Tuesday, September 14, 2004)]
[Senate]
[Page S9222]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SCHUMER:
  S. 2797. A bill to amend the Internal Revenue Code of 1986 to expand 
the deduction for college tuition expenses to include expenses for 
books; to the Committee on Finance.
  Mr. SCHUMER. Mr. President, 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:

                                S. 2797

       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 ``Textbook Affordability Act 
     of 2004''.

     SEC. 2. DEDUCTION FOR COLLEGE BOOK EXPENSES.

       (a) In General.--Section 222(b)(2) of the Internal Revenue 
     Code of 1986 (relating to applicable dollar limit) is 
     amended--
       (1) by inserting ``with respect to qualified tuition and 
     related expenses described in subsection (d)(1)(A)(i)'' after 
     ``amount'' in the matter preceding clause (i) in subparagraph 
     (B),
       (2) by redesignating subparagraph (C) as subparagraph (F), 
     and
       (3) by inserting after subparagraph (B) the following new 
     subparagraphs:
       ``(C) Books.--In the case of any taxable year beginning 
     after 2003, the applicable dollar amount with respect to 
     qualified tuition and related expenses described in 
     subsection (d)(1)(A)(ii) shall be equal to $1,000 reduced 
     (but not below zero) by the amount determined under 
     subparagraph (D).
       ``(D) Amount of reduction.--The amount determined under 
     this subparagraph equals the amount which bears the same 
     ratio to the amount which would be so taken into account as--
       ``(i) the excess of--

       ``(I) the taxpayer's adjusted gross income for such taxable 
     year, over
       ``(II) $65,000 ($130,000 in the case of a joint return), 
     bears to

       ``(ii) $15,000 ($30,000 in the case of a joint return).
       ``(E) Inflation adjustments.--
       ``(i) In general.--In the case of any taxable year 
     beginning in a calendar year after 2004, both of the dollar 
     amounts in subparagraph (D)(i)(II) shall be increased by an 
     amount equal to--

       ``(I) such dollar amount, multiplied by
       ``(II) the cost-of-living adjustment determined under 
     section 1(f)(3) for the calendar year in which the taxable 
     year begins, by substituting `calendar year 2003' for 
     `calendar year 1992' in subparagraph (B) thereof.

       ``(ii) Rounding.--If any amount as adjusted under clause 
     (i) is not a multiple of $50, such amount shall be rounded to 
     the nearest multiple of $50.''.
       (b) Expansion of Related Expenses.--Paragraph (1) of 
     section 222(d) of the Internal Revenue Code of 1986 (relating 
     to definitions and special rules) is amended to read as 
     follows:
       ``(1) Qualified tuition and related expenses.--
       ``(A) In general.--The term `qualified tuition and related 
     expenses'--
       ``(i) has the meaning given such term by section 25(f), and
       ``(ii) includes books (within the meaning of section 
     529(e)(3)(A)(i)).
       ``(B) Special rule.--Such expenses shall be reduced in the 
     same manner as under section 25A(g)(2).''.
       (c) Deduction for Books Made Permanent.--Section 222(e) of 
     the Internal Revenue Code of 1986 (relating to termination) 
     is amended by striking ``This'' and inserting ``Except with 
     respect to qualified tuition and related expenses described 
     in subsection (d)(1)(A)(ii), this''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to payments made in taxable years beginning after 
     December 31, 2003.
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