S.Amdt. 209

SA 209. Mr. GRASSLEY (for himself, Mr. Schumer, and Mr. Bayh)
submitted an amendment intended to be proposed to amendment SA 98
proposed by Mr. Inouye (for himself and Mr. Baucus) to the bill H.R. 1,
making supplemental appropriations for job preservation and creation,
infrastructure investment,

[[Page S1555]]

energy efficiency and science, assistance to the unemployed, and State
and local fiscal stabilization, for fiscal year ending September 30,
2009, and for other purposes; which was ordered to lie on the table; as
follows:

Strike subsection (a) of section 1004 of division B and
insert the following:
(a) In General.--Section 25A (relating to Hope scholarship
credit) is amended by redesignating subsection (i) as
subsection (j) and by inserting after subsection (h) the
following new subsection:
``(i) American Opportunity Tax Credit.--In the case of any
taxable year beginning in 2009 or 2010--
``(1) Increase in credit.--The Hope Scholarship Credit
shall be an amount equal to the sum of--
``(A) 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 $1,500,
``(B) 50 percent of such expenses so paid as exceeds $1,500
but does not exceed $3,000, plus
``(C) 25 percent of such expenses so paid as exceeds $3,000
but does not exceed $6,000.
``(2) Credit allowed for first 4 years of post-secondary
education.--Subparagraphs (A) and (C) of subsection (b)(2)
shall be applied by substituting `4' for `2'.
``(3) Qualified tuition and related expenses to include
required course materials.--Subsection (f)(1)(A) shall be
applied by substituting `tuition, fees, and course materials'
for `tuition and fees'.
``(4) Increase in agi limits for hope scholarship credit.--
In lieu of applying subsection (d) with respect to the Hope
Scholarship Credit, such credit (determined without regard to
this paragraph) shall be reduced (but not below zero) by the
amount which bears the same ratio to such credit (as so
determined) as--
``(A) the excess of--
``(i) the taxpayer's modified adjusted gross income (as
defined in subsection (d)(3)) for such taxable year, over
``(ii) $80,000 ($160,000 in the case of a joint return),
bears to
``(B) $10,000 ($20,000 in the case of a joint return).
``(5) Credit allowed against alternative minimum tax.--In
the case of a taxable year to which section 26(a)(2) does not
apply, so much of the credit allowed under subsection (a) as
is attributable to the Hope Scholarship Credit shall not
exceed the excess of--
``(A) the sum of the regular tax liability (as defined in
section 26(b)) plus the tax imposed by section 55, over
``(B) the sum of the credits allowable under this subpart
(other than this subsection and sections 23, 25D, and 30D)
and section 27 for the taxable year.

Any reference in this section or section 24, 25, 26, 25B,
904, or 1400C to a credit allowable under this subsection
shall be treated as a reference to so much of the credit
allowable under subsection (a) as is attributable to the Hope
Scholarship Credit.
``(6) Portion of credit made refundable.--25 percent of so
much of the credit allowed under subsection (a) as is
attributable to the Hope Scholarship Credit (determined after
application of paragraph (4) and without regard to this
paragraph and section 26(a)(2) or paragraph (5), as the case
may be) shall be treated as a credit allowable under subpart
C (and not allowed under subsection (a)). The preceding
sentence shall not apply to any taxpayer for any taxable year
if such taxpayer is a child to whom subsection (g) of section
1 applies for such taxable year.
``(7) Coordination with midwestern disaster area
benefits.--In the case of a taxpayer with respect to whom
section 702(a)(1)(B) of the Heartland Disaster Tax Relief Act
of 2008 applies for any taxable year, such taxpayer may elect
to waive the application of this subsection to such taxpayer
for such taxable year.''.
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