Higher Education and Skills Obtainment Act - Amends the Internal Revenue Code to replace the Hope Scholarship and Lifetime Learning tax credits with a tax credit for full and part-time post-secondary students equal to 100% of qualified tuition and related expenses up to $2,000, plus 25% of such expenses as exceeds $2,000 but not more than $4,000. Reduces the allowable amount of such credit to the extent that household income exceeds 400% of the federal poverty line. Repeals the tax deduction for qualified tuition and related expenses.
Expresses the sense of Congress that any revenue saved by the enactment of this Act shall be applied to the currently projected Pell Grant funding shortfall in 2015 and to deficit reduction
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2253 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 2253
To amend the Internal Revenue Code of 1986 to consolidate the current
education tax incentives into one credit against income tax for higher
education expenses, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 4, 2013
Mr. Schock 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 consolidate the current
education tax incentives into one credit against income tax for higher
education expenses, and for other purposes.
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 ``Higher Education and Skills
Obtainment Act''.
SEC. 2. CONSOLIDATION OF EDUCATION TAX INCENTIVES INTO HIGHER EDUCATION
AND SKILLS OBTAINMENT CREDIT.
(a) In General.--Section 25A of the Internal Revenue Code of 1986
(relating to Hope and Lifetime Learning credits) is amended to read as
follows:
``SEC. 25A. HIGHER EDUCATION AND SKILLS OBTAINMENT CREDIT.
``(a) Allowance of Credit.--In the case of any eligible student for
whom an election is in effect under this section for any 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 sum of--
``(1) 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
``(2) 25 percent of such expenses so paid as exceeds $2,000
but does not exceed $4,000.
``(b) Limitations.--
``(1) Credit allowed only for 4 taxable years.--The credit
under subsection (a) shall not be allowed for a taxable year
with respect to the qualified tuition and related expenses of
an eligible student if the student has completed (before the
beginning of such taxable year) 4 years of any combination of
postsecondary education at an eligible educational institution
and instruction described in subsection (c)(2)(B).
``(2) Limitation based on household income.--The amount
which would (but for this paragraph) be taken into account
under subsection (a) for the taxable year shall be reduced (but
not below zero) by the amount which bears the same ratio to the
amount which would be so taken into account as the excess (if
any) of--
``(A) the household income of the taxpayer for such
taxable year over 400 percent of the poverty line,
bears to
``(B) the amount equal to 500 percent of the
poverty line minus the amount equal to 400 percent of
the poverty line.
``(c) Definitions.--For purposes of this section--
``(1) Eligible student.--The term `eligible student' means,
with respect to any academic period, any individual who--
``(A) meets the requirements of section 484(a)(1)
of the Higher Education Act of 1965 (20 U.S.C.
1091(a)(1)), as in effect on the date of the enactment
of the Taxpayer Relief Act of 1997, and
``(B) in the case of a student enrolled in a degree
program, is carrying at least \1/2\ the normal full-
time work load for the course of study the student is
pursuing.
``(2) Qualified tuition and related expenses.--The term
`qualified tuition and related expenses' means tuition, fees,
and costs of course materials--
``(A) for education during the taxable year with
respect to the attendance at an eligible educational
institution during any academic period beginning in
such taxable year 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, and
``(B) for a course of instruction from an eligible
provider to acquire or improve job skills of the
individual during the taxable year (for education
furnished during any academic period beginning in such
taxable year).
``(3) 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, as in effect on the date
of the enactment of the Taxpayer Relief Act of 1997,
and
``(B) which is eligible to participate in a program
under title IV of the Higher Education Act of 1965.
``(4) Poverty line.--
``(A) In general.--The term `poverty line' has the
meaning given that term in section 2110(c)(5) of the
Social Security Act (42 U.S.C. 1397jj(c)(5)) with
respect to the taxpayer's family of the size involved.
``(B) Poverty line used.--The poverty line used
shall be the most recently published poverty line as of
the 1st day of the regular enrollment period for
coverage during such calendar year.
``(5) Eligible provider.--The term `eligible provider'
means provider of training services (within the meaning of
section 134(d)(4)(D) of the Workforce Investment Act of 1998)
(29 U.S.C. 2864(d)(4)(D)) who is identified in accordance with
section 122(e)(3) of such Act (29 U.S.C. 2842(e)(3)).
``(d) Special Rules.--
``(1) Identification requirements.--No credit shall be
allowed under subsection (a) to a taxpayer with respect to an
eligible student unless the taxpayer includes on the return of
tax for the taxable year--
``(A) the name and social security number of such
student, and
``(B) the employer identification number, name, and
address of any institution or eligible provider to
which tuition, fees, and costs of course materials were
paid with respect to such student.
``(2) Adjustment for certain scholarships.--The expenses
otherwise taken into account under subsection (a) with respect
to an individual for an academic period shall be reduced
(before the application of subsections (a) and (b)) 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,
``(C) a Federal Pell Grant or a Federal
supplemental educational opportunity grant under
subparts 1 and 3, respectively, of part A of title IV
of the Higher Education Act of 1965 (20 U.S.C. 1070a
and 1070b et seq., respectively), and
``(D) a payment (other than a gift, bequest,
devise, or inheritance within the meaning of section
102(a)) for such student'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.
``(3) Treatment of expenses paid by dependent.--If a
deduction under section 151 with respect to an individual is
allowed to another taxpayer for a taxable year beginning in the
calendar year in which such individual's taxable year begins--
``(A) no credit shall be allowed under subsection
(a) to such individual for such individual's taxable
year, and
``(B) amounts paid by such individual during such
individual's taxable year shall be treated for purposes
of this section as paid by such other taxpayer.
``(4) Treatment of certain prepayments.--If tuition, fees,
or costs of course materials are paid by the taxpayer during a
taxable year for an academic period which begins during the
first 3 months following such taxable year, such academic
period shall be treated for purposes of this section as
beginning during such taxable year.
``(5) Denial of double benefit.--No credit shall be allowed
under this section for any expense for which deduction is
allowed under any other provision of this chapter.
``(6) No credit for married individuals filing separate
returns.--If the taxpayer is a married individual (within the
meaning of section 7703), this section shall apply only if the
taxpayer and the taxpayer's spouse file a joint return for the
taxable year.
``(7) Nonresident aliens.--If the taxpayer is a nonresident
alien individual for any portion of the taxable year, this
section shall apply only if such individual is treated as a
resident alien of the United States for purposes of this
chapter by reason of an election under subsection (g) or (h) of
section 6013.
``(8) Supporting information.--No expense shall be taken
into account under this section for a taxable year unless the
taxpayer submits with the return of tax for the taxable year
information supporting such expense.
``(e) Election Not To Have Section Apply.--A taxpayer may elect not
to have this section apply with respect to the expenses of an
individual for any taxable year.
``(f) Verification and Confirmation of Certain Information.--In
carrying out this section, the Secretary shall utilize information from
the Secretary of Education to confirm and verify information relating
to educational institutions and students, including the Integrated
Postsecondary Education Data System and the National Student Loan Data
System.
``(g) Regulations.--The Secretary may prescribe such regulations as
may be necessary or appropriate to carry out this section, including
regulations providing for a recapture of the credit allowed under this
section in cases where there is a refund in a subsequent taxable year
of any expense which was taken into account in determining the amount
of such credit.''.
(b) Repeal of Deduction for Qualified Tuition and Related
Expenses.--
(1) In general.--Part VII of subchapter B of chapter 1 of
such Code (relating to additional itemized deductions for
individuals) is amended by striking section 222.
(2) Clerical amendment.--The table of sections for part VII
of subchapter B of chapter 1 of such Code is amended by
striking the item relating to section 222.
(c) Information Returns.--
(1) In general.--Section 6050S(e) of such Code is amended
by striking ``subsection (g)(2)'' and inserting ``subsection
(d)(2)''.
(2) Attendance.--Paragraph (2) of section 6050S(b) of such
Code is amended by redesignating subparagraph (C) as
subparagraph (D) and by inserting after subparagraph (B) the
following new subparagraph:
``(C) the status of the individual for each
academic period of the year for which payments are
received as--
``(i) a full-time or part-time student,
``(ii) if a part-time student, whether the
individual is at least half time, and
``(iii) whether the student is a graduate
student.''.
(d) Omission of Identification Information and Number of Years
Credit Is Claimed Treated as Mathematical or Clerical Error.--
Subparagraph (J) of section 6213(g)(2) of such Code is amended to read
as follows:
``(J) in the case of information required under
section 25A (relating to higher education obtainment
credit)--
``(i) an omission of a correct social
security number and employer identification
number of any institution required to be
included on a return under subsection (d)(1) of
such section, and
``(ii) an entry on the return claiming the
credit in violation of the limitation under
subsection (b)(1) of such return,''.
(e) Conforming Amendments.--
(1) Section 62(a) of such Code is amended by striking
paragraph (18).
(2) Subparagraph (A) of section 86(b)(2) of such Code is
amended by striking ``222,''.
(3) Subparagraph (B) of section 72(t)(7) of such Code is
amended by striking ``section 25A(g)(2)'' and inserting
``section 25A(d)(2)''.
(4) Subparagraph (A) of section 135(c)(4) of such Code is
amended by striking ``222,''.
(5) Subparagraph (A) of section 137(b)(3) of such Code is
amended by striking ``222,''.
(6) Subparagraph (A) of section 199(d)(2) of such Code is
amended by striking ``222,''.
(7) Clause (ii) of section 219(g)(3)(A) of such Code is
amended by striking ``222,''.
(8) Clause (i) of section 221(b)(2)(C) of such Code is
amended by striking ``222,''.
(9) Clause (iii) of section 469(i)(3)(F) of such Code is
amended by striking ``221, and 222'' and inserting ``and 221''.
(10) Subsection (d) of section 221 of such Code is
amended--
(A) by striking ``section 25A(g)(2)'' in paragraph
(2)(B) and inserting ``section 25A(d)(2)'', and
(B) by striking ``section 25A(f)(2)'' in the second
sentence of paragraph (2) and inserting ``section
25A(c)(3)''.
(11) Section 221(d)(3) of such Code is amended by striking
``section 25A(b)(3)'' and inserting ``section 25A(c)(3)''.
(12) Subclause (I) of section 529(c)(3)(B)(v) of such Code
is amended by striking ``section 25A(g)(2)'' and inserting
``25A(d)(2)''.
(13) Clause (i) of section 529(e)(3)(B) of such Code is
amended by striking ``section 25A(b)(3)'' and inserting
``section 221(c)(3)''.
(14) Subclause (I) of section 530(d)(2)(C)(i) of such Code
is amended by striking ``section 25A(g)(2)'' and inserting
``section 25A(d)(2)''.
(15) Clause (iii) of section 530(d)(4)(B) of such Code is
amended by striking ``section 25A(g)(2)'' and inserting
``25A(d)(2)''.
(16) Section 1400O of such Code is amended by adding at the
end the following flush sentence:
``For purposes of this section, any reference to section 25A shall
be treated as a reference to such section as in effect on the day
before the date of the enactment of this sentence.''.
(17) The table of sections for subpart A of part IV of
subchapter A of chapter 1 of such Code is amended by striking
the item relating to section 25A and inserting the following:
``Sec. 25A. Higher education and skills obtainment credit.''.
(f) Sense of Congress.--It is the sense of Congress that any
savings in revenues resulting from the enactment of this section shall
be applied to the currently projected Pell Grant funding shortfall
beginning in 2015 and to deficit reduction.
(g) Effective Date.--The amendments made by this section shall
apply to expenses paid after December 31, 2013, for education furnished
in academic periods beginning after such date.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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