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<PRE>[DOCID: f:h2482ih.txt]






107th CONGRESS
  1st Session
                                H. R. 2482

To repeal the tuition-sensitivity trigger in the Pell Grant program and 
   to expand qualifying expenses and income eligibility for the Hope 
               Scholarship and Lifetime Learning Credits.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 12, 2001

 Mr. Schiff (for himself, Mr. George Miller of California, Mr. Lantos, 
Mr. Filner, Ms. Sanchez, Ms. Roybal-Allard, Mr. Farr of California, Mr. 
   Frank, Mrs. Napolitano, Mr. Honda, and Ms. Waters) introduced the 
following bill; which was referred to the Committee on Ways and Means, 
and in addition to the Committee on Education and the Workforce, for a 
 period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

_______________________________________________________________________

                                 A BILL


 
To repeal the tuition-sensitivity trigger in the Pell Grant program and 
   to expand qualifying expenses and income eligibility for the Hope 
               Scholarship and Lifetime Learning Credits.

    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 ``Access to Higher Education Act of 
2001''.

SEC. 2. REPEAL OF TUITION-SENSITIVITY TRIGGER IN PELL GRANT PROGRAM.

    (a) Repeal.--Paragraph (3) of section 401(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1070a(b)(3)) is repealed.
    (b) Effective Date.--Subsection (a) shall apply to the award of 
Federal Pell Grants for periods of enrollment beginning on or after 
July 1, 2002.

SEC. 3. EXPANSION OF QUALIFYING EXPENSES UNDER HOPE SCHOLARSHIP AND 
              LIFETIME LEARNING CREDITS.

    (a) In General.--Section 25A of the Internal Revenue Code of 1986 
(relating to hope and lifetime learning credits) is amended by striking 
``qualified tuition and related expenses'' each place it appears and 
inserting ``qualified higher education expenses''.
    (b) Qualified Higher Education Expenses.--So much of paragraph (1) 
of section 25A(f) of such Code as precedes subparagraph (B) is amended 
to read as follows:
            ``(1) Qualified higher education expenses.--
                    ``(A) In general.--The term `qualified higher 
                education expenses' means the cost of attendance (as 
                defined in section 472 of the Higher Education Act of 
                1965 (20 U.S.C. 1087ll), as in effect on the date of 
                the enactment of this subparagraph) of--
                            ``(i) the taxpayer,
                            ``(ii) the taxpayer's spouse, or
                            ``(iii) any dependent of the taxpayer with 
                        respect to whom the taxpayer is allowed a 
                        deduction under section 151,
                at an eligible educational institution for courses of 
                instruction of such individual at such institution.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenses paid after December 31, 2001 (in taxable years ending 
after such date), for education furnished in academic periods beginning 
after such date.

SEC. 4. INCREASE IN FAMILY INCOME ELIGIBILITY FOR HOPE SCHOLARSHIP AND 
              LIFETIME LEARNING CREDITS.

    (a) In General.--Clause (ii) of section 25A(d)(2)(A) of the 
Internal Revenue Code of 1986 is amended by striking ``$40,000 
($80,000'' and inserting ``$50,000 ($100,000''.
    (b) Conforming Amendments.--Section 25A(h)(2)(A) of such Code is 
amended--
            (1) by striking ``2001'' and inserting ``2002'', and
            (2) by striking ``$40,000 and $80,000'' and inserting 
        ``$50,000 and $100,000''.
    (c) Effective Date.--The amendments made by this section shall 
apply to expenses paid after December 31, 2001 (in taxable years ending 
after such date), for education furnished in academic periods beginning 
after such date.
                                 &lt;all&gt;

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