Universal College Credit Act - Amends the Internal Revenue Code to allow a tax credit up to $5,000 annually for the qualified tuition and related expenses of an individual taxpayer, a taxpayer's spouse, or dependents for instruction at an institution of higher education. Allows such credit for four years of undergraduate education expenses and six years of graduate or professional education expenses. Excludes expenses for courses involving sports, games, or hobbies (unless part of a degree program) and expenses unrelated to an academic program (e.g., student activity fees, athletic fees, or insurance expenses).
[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5286 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5286
To amend the Internal Revenue Code of 1986 to allow a credit against
tax for qualified tuition and related expenses.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 12, 2010
Mr. Boswell introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to allow a credit against
tax for qualified tuition and related expenses.
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 ``Universal College Credit Act''.
SEC. 2. UNIVERSAL COLLEGE CREDIT.
(a) In General.--Subpart A of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 is amended by inserting after
section 25D the following new section:
``SEC. 25E. UNIVERSAL COLLEGE CREDIT.
``(a) Allowance of Credit.--In the case of an individual for whom
an election is in effect under this section for a taxable year, there
shall be allowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to the qualified tuition and
related expenses paid by the taxpayer during the taxable year.
``(b) Dollar Limitation.--The amount allowed as a credit under
subsection (a) with respect to each individual for whom qualified
tuition and related expenses are paid by the taxpayer during the
taxable year shall not exceed $5,000.
``(c) Credit Allowed Only for 4 Years of Undergraduate Education
and 6 Years of Graduate Education.--An election to have this section
apply with respect to any individual for whom qualified tuition and
related expenses are paid by the taxpayer during the taxable year may
not be made for any taxable year if such an election (by the taxpayer
or any other individual) is in effect with respect to--
``(1) the undergraduate education expenses of such
individual for any 4 prior taxable years, or
``(2) the graduate education expenses of such individual
for any 6 prior taxable years.
``(d) Denial of Double Benefit.--No credit shall be allowed under
this section with respect to the qualified tuition and related expenses
of any individual if a credit or deduction is allowed under any other
provision of this chapter with respect to such expenses.
``(e) Definitions and Special Rules.--For purposes of this
section--
``(1) Qualified tuition and related expenses.--
``(A) In general.--The term `qualified tuition and
related expenses' means tuition and fees required for
the enrollment or attendance of--
``(i) the taxpayer,
``(ii) the taxpayer's spouse, or
``(iii) any dependent of the taxpayer with
respect to whom the taxpayer is allowed a
deduction under section 151,
at an eligible educational institution for courses of
instruction of such individual at such institution.
``(B) Exception for education involving sports,
etc.--Such term does not include expenses with respect
to any course or other education involving sports,
games, or hobbies, unless such course or other
education is part of the individual's degree program.
``(C) Exception for nonacademic fees.--Such term
does not include student activity fees, athletic fees,
insurance expenses, or other expenses unrelated to an
individual's academic course of instruction.
``(D) Adjustment for scholarships and section 529
distributions.--The amount of qualified tuition and
related expenses otherwise taken into account under
subsection (a) with respect to an individual for the
taxable year shall be reduced--
``(i) as provided in section 25A(g)(2), and
``(ii) by the amount of such expenses which
are taken into account in determining the
exclusions under sections 529(c)(3)(B) and
530(d)(2).
``(2) Eligible educational institution.--The term `eligible
educational institution' means an institution--
``(A) which is described in section 481 of the
Higher Education Act of 1965 (20 U.S.C. 1088), as in
effect on the date of the enactment of this section,
and
``(B) which is eligible to participate in a program
under title IV of such Act.
``(3) Undergraduate education expenses.--The term
`undergraduate education expenses' means the qualified tuition
and related expenses paid by the taxpayer during a taxable year
for an individual enrolled in an undergraduate course of study
during such taxable year.
``(4) Graduate education expenses.--The term `graduate
education expenses' means the qualified tuition and related
expenses paid by the taxpayer during a taxable year for an
individual enrolled in a graduate or professional course of
study during such taxable year.
``(5) Adjustment for certain scholarships, etc.--The amount
of qualified tuition and related expenses otherwise taken into
account under subsection (a) with respect to an individual for
an academic period shall be reduced by the sum of any amounts
paid for the benefit of such individual which are allocable to
such period as--
``(A) a qualified scholarship which is excludable
from gross income under section 117,
``(B) an educational assistance allowance under
chapter 30, 31, 32, 34, or 35 of title 38, United
States Code, or under chapter 1606 of title 10, United
States Code, and
``(C) a payment (other than a gift, bequest,
devise, or inheritance within the meaning of section
102(a) for such individual's educational expenses, or
attributable to such individual's enrollment at an
eligible educational institution, which is excludable
from gross income under any law of the United States.
``(f) Election Not To Have Section Apply.--A taxpayer may elect to
have this section not apply with respect to an individual for any
taxable year.''.
(b) Coordination With Exclusion for Income From United States
Savings Bonds Used To Pay Higher Education Tuition and Fees.--
Subparagraph (A) of section 135(d)(2) of such Code is amended by
inserting ``or 25E'' after ``section 25A''.
(c) Clerical Amendment.--The table of sections for subpart A of
part IV of subchapter A of chapter 1 of such Code is amended by
inserting after the item relating to section 25D the following new
item:
``Sec. 25E. Universal college credit.''.
(d) Effective Date.--The amendments made by this section shall
apply to taxable years ending after the date of the enactment of this
Act.
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Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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