< Back to H.R. 1774 (105th Congress, 1997–1998)

Text of the Families Educational Opportunity Act of 1997

This bill was introduced on June 3, 1997, in a previous session of Congress, but was not enacted. The text of the bill below is as of Jun 3, 1997 (Introduced).

Source: GPO

HR 1774 IH

105th CONGRESS

1st Session

H. R. 1774

To amend the Internal Revenue Code of 1986 to provide for a deduction for qualified higher education expenses.

IN THE HOUSE OF REPRESENTATIVES

June 3, 1997

Mr. WEYGAND 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 for a deduction for qualified higher education 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 ‘Families Educational Opportunity Act of 1997’.

SEC. 2. DEDUCTION FOR QUALIFIED HIGHER EDUCATION EXPENSES.

    (a) IN GENERAL- Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 (relating to additional itemized deductions for individuals) is amended by redesignating section 221 as section 222 and by inserting after section 220 the following new section:

‘SEC. 221. QUALIFIED HIGHER EDUCATION EXPENSES.

    ‘(a) ALLOWANCE OF DEDUCTION- In the case of an individual, there shall be allowed as a deduction the amount of qualified higher education expenses paid by the taxpayer during the taxable year.

    ‘(b) LIMITATIONS-

      ‘(1) DOLLAR LIMITATION- The amount allowed as a deduction under subsection (a) for any taxable year shall not exceed $10,000.

      ‘(2) LIMITATION BASED ON MODIFIED ADJUSTED GROSS INCOME-

        ‘(A) IN GENERAL- The amount allowed as a deduction under subsection (a) (after application of paragraph (1)) shall be reduced (but not below zero) by $2,000 for each $5,000 (or part thereof) by which the taxpayer’s modified adjusted gross income for such taxable year exceeds $40,000 ($60,000 in the case of a joint return).

        ‘(B) MODIFIED ADJUSTED GROSS INCOME- For purposes of this paragraph, the term ‘modified adjusted gross income’ means the adjusted gross income of the taxpayer for the taxable year determined--

          ‘(i) without regard to this section and sections 911, 931, and 933, and

          ‘(ii) after the application of sections 86, 135, 219 and 469.

        For purposes of sections 86, 135, 219, and 469, adjusted gross income shall be determined without regard to the deduction allowed under this section.

        ‘(C) INFLATION ADJUSTMENTS-

          ‘(i) IN GENERAL- In the case of a taxable year beginning after 1998, the $40,000 and $60,000 amounts described in subparagraph (A) shall each be increased by an amount equal to--

            ‘(I) such dollar amount, multiplied by

            ‘(II) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in which the taxable year begins, determined by substituting ‘calendar year 1997’ for ‘calendar year 1992’ in subparagraph (B) thereof.

          ‘(ii) ROUNDING- If any amount as adjusted under clause (i) is not a multiple of $1,000, such amount shall be rounded to the next lowest multiple of $1,000.

    ‘(c) QUALIFIED HIGHER EDUCATION EXPENSES- For purposes of this section--

      ‘(1) IN GENERAL- The term ‘qualified higher education expenses’ means tuition and fees charged by an educational institution and required for the enrollment or attendance of--

        ‘(A) the taxpayer,

        ‘(B) the taxpayer’s spouse, or

        ‘(C) any child of the taxpayer (within the meaning of section 151(c)(3)), or any individual for whom the taxpayer is the legal guardian,

      as an eligible student at an eligible educational institution (as defined in section 135(c)(3)) on a full-time basis.

      ‘(2) 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 expenses are part of a degree program.

    ‘(d) SPECIAL RULES-

      ‘(1) NO DOUBLE BENEFIT-

        ‘(A) IN GENERAL- No deduction shall be allowed under subsection (a) for qualified higher education expenses with respect to which a deduction is allowable to the taxpayer under any other provision of this chapter unless the taxpayer irrevocably waives his right to the deduction of such expenses under such other provision.

        ‘(B) DEPENDENTS- No deduction shall be allowed under subsection (a) to any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins.

        ‘(C) SAVINGS BOND EXCLUSION- A deduction shall be allowed under subsection (a) for qualified higher education expenses only to the extent the amount of such expenses exceeds the amount excludable under section 135 for the taxable year.

      ‘(2) LIMITATION ON TAXABLE YEAR OF DEDUCTION- A deduction shall be allowed under subsection (a) for any taxable year only to the extent the qualified higher education expenses are in connection with--

        ‘(A) attendance during the taxable year, or

        ‘(B) an academic term beginning during such taxable year or during the 1st 3 months of the next taxable year.’

    (b) DEDUCTION ALLOWED WITHOUT ITEMIZATION- Section 62(a) is amended by inserting after paragraph (16) the following new paragraph:

      ‘(17) QUALIFIED HIGHER EDUCATION EXPENSES- The deduction allowed by section 221.’

    (c) 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 221 and inserting:

‘Sec. 221. Higher education expenses.

‘Sec. 222. Cross reference.’

    (d) EFFECTIVE DATE- The amendments made by this section shall apply to payments made after December 31, 1997.