108th CONGRESS
2nd Session
S. 2797
IN THE SENATE OF THE UNITED STATES
September 14, 2004
Mr. Schumer introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend the Internal Revenue Code of 1986 to expand the deduction for college tuition expenses to include expenses for books.
Short title
This Act may be cited as the Textbook
Affordability Act of 2004
.
Deduction for college book expenses
In general
Section 222(b)(2) of the Internal Revenue Code of 1986 (relating to applicable dollar limit) is amended—
by inserting with respect to
qualified tuition and related expenses described in subsection
(d)(1)(A)(i)
after amount
in the matter preceding clause
(i) in subparagraph (B),
by redesignating subparagraph (C) as subparagraph (F), and
by inserting after subparagraph (B) the following new subparagraphs:
Books
In the case of any taxable year beginning after 2003, the applicable dollar amount with respect to qualified tuition and related expenses described in subsection (d)(1)(A)(ii) shall be equal to $1,000 reduced (but not below zero) by the amount determined under subparagraph (D).
Amount of reduction
The amount determined under this subparagraph equals the amount which bears the same ratio to the amount which would be so taken into account as—
the excess of—
the taxpayer’s adjusted gross income for such taxable year, over
$65,000 ($130,000 in the case of a joint return), bears to
$15,000 ($30,000 in the case of a joint return).
Inflation adjustments
In general
In the case of any taxable year beginning in a calendar year after 2004, both of the dollar amounts in subparagraph (D)(i)(II) shall be increased by an amount equal to—
such dollar amount, multiplied by
the cost-of-living adjustment determined under section 1(f)(3)
for the calendar year in which the taxable year begins, by substituting
calendar year 2003
for calendar year 1992
in
subparagraph (B) thereof.
Rounding
If any amount as adjusted under clause (i) is not a multiple of $50, such amount shall be rounded to the nearest multiple of $50.
.
Expansion of related expenses
Paragraph (1) of section 222(d) of the Internal Revenue Code of 1986 (relating to definitions and special rules) is amended to read as follows:
Qualified tuition and related expenses
In general
The term qualified tuition and related
expenses
—
has the meaning given such term by section 25(f), and
includes books (within the meaning of section 529(e)(3)(A)(i)).
Special rule
Such expenses shall be reduced in the same manner as under section 25A(g)(2).
.
Deduction for books made permanent
Section 222(e) of the Internal Revenue Code
of 1986 (relating to termination) is amended by striking This
and inserting Except with respect to qualified tuition and related
expenses described in subsection (d)(1)(A)(ii), this
.
Effective date
The amendments made by this section shall apply to payments made in taxable years beginning after December 31, 2003.