Tuition Tax Relief Act

(Conference report filed in House, H. Rept. 95-1790)

Tuition Tax Credit Act - Amends the Internal Revenue Code to allow individuals an income tax credit for 35 percent of the tuition paid for the secondary and post-secondary, nongraduate education of the taxpayer, his spouse and dependents. Allows up to $50 for secondary school students and $100 for post-secondary students to be credited for 1978; $100 for secondary students and $150 for post-secondary students to be credited for 1979; $100 for secondary students and $250 for post-secondary students to be credited for 1980 and 1981, after which the credit expires.

Treats tuition payments as paid for calendar year 1978 only if such payments are made on or after August 1, 1978, and before February 1, 1979, for education furnished on or after August 1, 1978 and before January 1, 1979. Treats tuition payments as paid for calendar year 1979 and succeeding calendar years only if such payments are made during the particular calendar year or within one month of the beginning or close of such year for education furnished during that year.

Defines full-time and qualified half-time student. Excludes any amount paid for books, supplies, meals, lodging, transportation, and education below the ninth-grade level from the definition of tuition. Defines eligible educational institution as an institution of higher education, a post-secondary vocational school, or a secondary school.

Reduces the tuition credit by any amount received by the taxpayer as a nontaxable scholarship or educational assistance allowance.

Forbids any construction of this Act as granting the Government additional authority to examine the books or activities of any church school except to the extent necessary to determine whether it is an eligible educational institution.

Provides for the immediate certification of any judicial action brought in a United States district court concerning the constitutionality of this Act to the appropriate circuit court of appeals. Authorizes direct appeal to the Supreme Court of any decision by a circuit court. Directs the expedited consideration of such a case at both judicial levels.

Provides that a judicial decision holding any provison of the educational expenses credit invalid shall not affect the remainder of the credit provisions.

Requires the disregard of any amount received by the taxpayer as a credit for tuition expenses under this Act for purposes of determining the eligibility of the taxpayer for Federal educational assistance benefits.