Statements on Introduced Bills and Joint Resolutions - S. 2797

STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

By Mr. SCHUMER:

S. 2797. A bill to amend the Internal Revenue Code of 1986 to expand the deduction for college tuition expenses to include expenses for books; to the Committee on Finance.

Mr. SCHUMER. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record.
There being no objection, the bill was ordered to be printed in the Record, as follows:

S. 2797

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 "Textbook Affordability Act of 2004".

SEC. 2. DEDUCTION FOR COLLEGE BOOK EXPENSES.

(a) IN GENERAL.-Section 222(b)(2) of the Internal Revenue Code of 1986 (relating to applicable dollar limit) is amended-

(1) 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),

(2) by redesignating subparagraph © as subparagraph (F), and

(3) 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).

"(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-

"(i) the excess of-

"(I) the taxpayer's adjusted gross income for such taxable year, over

"(II) $65,000 ($130,000 in the case of a joint return), bears to

"(ii) $15,000 ($30,000 in the case of a joint return).

"(E) INFLATION ADJUSTMENTS.-

"(i) 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-

"(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, by substituting 'calendar year 2003' for 'calendar year 1992' in subparagraph (B) thereof.

"(ii) 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.".

(b) 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:

"(1) QUALIFIED TUITION AND RELATED EXPENSES.-

"(A) IN GENERAL.-The term 'qualified tuition and related expenses'-

"(i) has the meaning given such term by section 25(f), and

"(ii) includes books (within the meaning of section 529(e)(3)(A)(i)).

"(B) 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".

(d) EFFECTIVE DATE.-The amendments made by this section shall apply to payments made in taxable years beginning after December 31, 2003.