College Preparation Tax Credit Act of 2014

College Preparation Tax Credit Act of 2014 - Amends the Internal Revenue Code to allow an individual taxpayer a tax credit for up to $500 of qualified college preparation expenses. Defines such expenses as: (1) the fees required for taking any Advanced Placement or International Baccalaureate exam, the SAT, the ACT, or any SAT subject test; (2) expenses related to preparation for such exams; and (3) fees and expenses related to applications for admission to pursue a postsecondary course of study at an institution of higher education.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4563 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 4563

To amend the Internal Revenue Code of 1986 to provide a tax credit for 
           certain expenses relating to applying to college.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 2, 2014

  Mr. Israel 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 provide a tax credit for 
           certain expenses relating to applying to college.

    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 Preparation Tax Credit Act 
of 2014''.

SEC. 2. TAX CREDIT FOR COLLEGE PREPARATION EXPENSES.

    (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. CREDIT FOR COLLEGE PREPARATION EXPENSES.

    ``(a) Allowance of Credit.--In the case of an individual, there 
shall be allowed as a credit against the tax imposed by this chapter 
for such taxable year an amount equal to so much of the qualified 
college preparation expenses paid or incurred by the taxpayer during 
such taxable year as does not exceed $500.
    ``(b) Qualified College Preparation Expenses.--For purposes of this 
section, the term `qualified college preparation expenses' means 
amounts paid or incurred for--
            ``(1) fees required for taking any Advanced Placement or 
        International Baccalaureate exam,
            ``(2) fees required for taking the SAT, the ACT, or any SAT 
        Subject Test,
            ``(3) expenses related to preparation (including tutorial 
        services and preparation classes) for any exam described in 
        paragraph (1) or (2),
            ``(4) fees and expenses related to applications for 
        admission to pursue a postsecondary course of study at an 
        eligible educational institution (as defined in section 
        25A(f)(2)), and
            ``(5) such other similar expenses and fees as the Secretary 
        may by regulation prescribe.
    ``(c) Election.--No credit shall be allowed under subsection (a) 
with respect to any expenses paid or incurred during the taxable year 
with respect to any individual for whom an election is not in effect 
under this section for such taxable year.
    ``(d) Credit Allowed Only for 3 Taxable Years.--An election under 
this section with respect to any individual may not be made for any 
taxable year if such an election is in effect with respect to such 
individual for any 3 prior taxable years.
    ``(e) 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--
            ``(1) no credit shall be allowed under subsection (a) to 
        such individual for such individual's taxable year, and
            ``(2) qualified college preparation expenses paid by such 
        individual during such individual's taxable year shall be 
        treated for purposes of this section as paid by such other 
        taxpayer.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of the Internal Revenue Code of 
1986 is amended by inserting after the item relating to section 25D the 
following new item:

``Sec. 25E. Credit for college preparation expenses.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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