II
110th CONGRESS
1st Session
S. 454
IN THE SENATE OF THE UNITED STATES
January 31, 2007
Ms. Collins introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To provide an increase in funding for Federal Pell Grants, to amend the Internal Revenue Code of 1986 in order to expand the deduction for interest paid on student loans, raise the contribution limits for Coverdell Education Savings Accounts, and make the exclusion for employer provided educational assistance permanent, and for other purposes.
Short title
This Act may be cited as the
Improving Access to Higher Education
Act of 2007
.
Increase in Federal Pell Grants
Amendment
Section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) is amended—
in subsection
(a)(1), by striking 2004
and inserting 2008
;
and
in subsection (b)—
in subparagraph
(A) of paragraph (2), by striking shall be—
and all that follows
through that year.
and inserting shall be $5,100 for
academic year 2007–2008, less an amount equal to the amount determined to be
the expected family contribution with respect to that student for that
year.
; and
in paragraph (5),
by striking $400
each place the term appears and inserting
$500
.
Additional funds
In general
There are authorized to be appropriated, and there are appropriated, to carry out paragraph (2) (in addition to any other amounts appropriated to carry out section 401 of the Higher Education Act of 1965 (20 U.S.C. 1070a) and out of any money in the Treasury not otherwise appropriated) $4,331,000,000 for academic year 2007–2008.
Increase in Federal Pell Grants
The funds made available pursuant to paragraph (1) shall be used to increase the amount of the maximum Federal Pell Grant under section 401 of the Higher Education Act of 1965 for which funds are appropriated under appropriations Acts for fiscal year 2007 by $1,050 for award year 2007–2008.
Effective date
The amendments made by subsection (a)(2)(B) shall take effect on July 1, 2007.
Expansion of deduction for interest on education loans
Increased limitation
Maximum deduction
Paragraph (1) of section 221(b) of the Internal Revenue Code of 1986 (relating to maximum deduction) is amended to read as follows:
In general
Except as provided in paragraph (2), the deduction allowed by subsection (a) for the taxable year shall not exceed $3,750.
.
Increase in phaseout
Subclause (II) of section 221(b)(2)(i) of such Code is
amended by striking $50,000 ($100,000
and inserting
$75,000 ($150,000
.
Conforming amendment
Section 221(f)(1) of such Code is amended to read as follows:
In general
In the case of a taxable year beginning after 2007, the $75,000 and $150,000 amounts in subsection (b)(2) shall each 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, determined by substituting calendar year
2006
for calendar year 1992
in subparagraph (B)
thereof.
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2006.
Repeal of EGTRRA sunset
Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset of provisions of such Act) shall not apply to section 412 of such Act (relating to elimination of 60-month limit and increase in income limitation on student loan interest deduction).
Coverdell education savings accounts
Increase in allowable contributions
In general
Clause (iii) of section 530(b)(1)(A) of the Internal
Revenue Code of 1986 is amended by striking $2,000
and inserting
$3,000
.
Conforming amendment
Section 4973(e)(1)(A) of such Code is amended by
striking $2,000
and inserting $3,000
.
Reports
Subsection
(h) of section 530 of such Code is amended by striking the period at the end of
the last sentence and inserting , except that reports shall be so filed
and furnished for any calendar year not later than June 30 of the following
year.
.
Effective date
The amendments made by this section shall apply to taxable years beginning after December 31, 2006.
Repeal of EGTRRA sunset
Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset of provisions of such Act) shall not apply to section 401 of such Act (relating to modifications to education individual retirement accounts).
Repeal of EGTRRA sunset for employer-provided educational assistance
Title IX of the Economic Growth and Tax Relief Reconciliation Act of 2001 (relating to sunset of provisions of such Act) shall not apply to section 411 of such Act (relating to extension of exclusion for employer-provided educational assistance).