A bill to amend the Internal Revenue Code of 1954 to allow a credit against income tax to individuals for certain expenses incurred in higher education.

Revises the Internal Revenue Code to allow as a credit against the income tax amounts paid by an individual during the taxable year for the expenses of higher education for himself or any other individual.

Limits such credit to 100 percent of the first $200 of such educational expenses, 25 percent of the next $300, and 5 percent of the next $1000 of such expenses. Reduces such credit by 1 percent of the amount by which the adjusted gross income of the taxpayer exceeds $22,500.

Reduces the amount of educational expenses otherwise recognized by this Act by the amounts received as scholarships, fellowships, and veterans benefits.