Us Congress 2025-2026 Regular Session

Us Congress House Bill HB2543 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 2543
5	5	To amend the Internal Revenue Code of 1986 to expand the exclusion of
6	6	Pell Grants from gross income, and for other purposes.
7	7	IN THE HOUSE OF REPRESENTATIVES
8	8	APRIL1, 2025
9	9	Mr. D
10	10	OGGETT(for himself, Mr. KELLYof Pennsylvania, Mr. DAVISof Illinois,
11	11	and Mr. F
12	12	EENSTRA) introduced the following bill; which was referred to
13	13	the Committee on Ways and Means
14	14	A BILL
15	15	To amend the Internal Revenue Code of 1986 to expand
16	16	the exclusion of Pell Grants from gross income, and
17	17	for other purposes.
18	18	Be it enacted by the Senate and House of Representa-1
19	19	tives of the United States of America in Congress assembled, 2
20	20	SECTION 1. SHORT TITLE. 3
21	21	This Act may be cited as the ‘‘Tax-Free Pell Grant 4
22	22	Act’’. 5
23	23	SEC. 2. EXPANSION OF PELL GRANT EXCLUSION FROM 6
24	24	GROSS INCOME. 7
25	25	(a) I
26	26	NGENERAL.—Section 117(b)(1) of the Internal 8
27	27	Revenue Code of 1986 is amended by striking ‘‘received 9
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30	30	•HR 2543 IH
31	31	by an individual’’ and all that follows and inserting ‘‘re-1
32	32	ceived by an individual— 2
33	33	‘‘(A) as a scholarship or fellowship grant 3
34	34	to the extent the individual establishes that, in 4
35	35	accordance with the conditions of the grant, 5
36	36	such amount was used for qualified tuition and 6
37	37	related expenses, or 7
38	38	‘‘(B) as a Federal Pell Grant under section 8
39	39	401 of the Higher Education Act of 1965 (as 9
40	40	in effect on the date of the enactment of the 10
41	41	Tax-Free Pell Grant Act).’’. 11
42	42	(b) N
43	43	OADJUSTMENT UNDERAMERICANOPPOR-12
44	44	TUNITY AND LIFETIMELEARNINGCREDITS.—Section 13
45	45	25A(g)(2)(A) of such Code is amended by striking ‘‘a 14
46	46	qualified scholarship which’’ and inserting ‘‘a qualified 15
47	47	scholarship which is described in section 117(b)(1)(A) and 16
48	48	which’’. 17
49	49	(c) E
50	50	FFECTIVEDATE.—The amendments made by 18
51	51	this section shall apply to taxable years beginning after 19
52	52	December 31, 2024. 20
53	53	SEC. 3. EXPANSION OF AMERICAN OPPORTUNITY AND 21
54	54	LIFETIME LEARNING CREDITS. 22
55	55	(a) I
56	56	NGENERAL.—Section 25A of the Internal Rev-23
57	57	enue Code of 1986 is amended— 24
58	58	(1) in subsection (f)(1)— 25
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62	62	(A) in subparagraph (A), by striking ‘‘tui-1
63	63	tion and fees’’ and inserting ‘‘tuition, fees, com-2
64	64	puter or peripheral equipment, child and de-3
65	65	pendent care expenses, and course materials’’, 4
66	66	(B) by striking subparagraph (D), and 5
67	67	(C) by adding at the end the following new 6
68	68	subparagraphs: 7
69	69	‘‘(D) C
70	70	HILD AND DEPENDENT CARE EX -8
71	71	PENSES.—For purposes of this paragraph— 9
72	72	‘‘(i) I
73	73	N GENERAL.—The term ‘child 10
74	74	and dependent care expenses’ means 11
75	75	amounts paid for the following expenses, 12
76	76	but only if such expenses are incurred to 13
77	77	enable the taxpayer to be enrolled in an el-14
78	78	igible educational institution for any period 15
79	79	for which there are 1 or more qualifying 16
80	80	individuals with respect to the taxpayer: 17
81	81	‘‘(I) expenses for household serv-18
82	82	ices, and 19
83	83	‘‘(II) expenses for the care of a 20
84	84	qualifying individual. 21
85	85	Such term shall not include any amount 22
86	86	paid for services outside the taxpayer’s 23
87	87	household at a camp where the qualifying 24
88	88	individual stays overnight. 25
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92	92	‘‘(ii) QUALIFYING INDIVIDUAL .—The 1
93	93	term ‘qualifying individual’ has the mean-2
94	94	ing given such term in section 21(b)(1). 3
95	95	‘‘(iii) E
96	96	XCEPTION, DEPENDENT CARE 4
97	97	CENTERS.—Rules similar to the rules of 5
98	98	subparagraphs (B), (C), and (D) of section 6
99	99	21(b)(2) shall apply, except the term ‘child 7
100	100	and dependent care expenses’ shall be sub-8
101	101	stituted for the term ‘employment-related 9
102	102	expenses’ each place it appears in such 10
103	103	subparagraphs. 11
104	104	‘‘(E) C
105	105	HILD AND DEPENDENT CARE EX -12
106	106	PENSES ONLY QUALIFIED EXPENSES WHEN 13
107	107	CLAIMED BY ELIGIBLE STUDENT .—Amounts 14
108	108	paid for an expense described in subparagraph 15
109	109	(E) may not be taken into account under this 16
110	110	paragraph for a taxable year unless required for 17
111	111	the enrollment or attendance of an individual 18
112	112	described in subparagraph (A)(i) or subpara-19
113	113	graph (A)(ii). 20
114	114	‘‘(F) C
115	115	OMPUTER OR PERIPHERAL EQUIP -21
116	116	MENT.— 22
117	117	‘‘(i) D
118	118	EFINED.—For purposes of this 23
119	119	paragraph, the term ‘computer or periph-24
120	120	eral equipment’ means expenses for the 25
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124	124	purchase of computer or peripheral equip-1
125	125	ment (as defined in section 168(i)(2)(B), 2
126	126	computer software (as defined in section 3
127	127	197(e)(3)(B))), or internet access and re-4
128	128	lated services, if such equipment, software, 5
129	129	or services are to be used primarily by the 6
130	130	individual during any of the years the indi-7
131	131	vidual is enrolled at an eligible educational 8
132	132	institution. 9
133	133	‘‘(ii) D
134	134	OLLAR LIMIT ON AMOUNT 10
135	135	CREDITABLE.—The aggregate of the 11
136	136	amounts paid or expenses incurred for 12
137	137	computer or peripheral equipment which 13
138	138	may be taken into account under this para-14
139	139	graph for a taxable year by the taxpayer 15
140	140	shall not exceed $1,000.’’, and 16
141	141	(2) in subsection (g)(5)— 17
142	142	(A) in the heading, by adding ‘‘
143	143	OR CRED-18
144	144	IT’’ at the end, and 19
145	145	(B) by inserting ‘‘or credit’’ after ‘‘a de-20
146	146	duction’’. 21
147	147	(b) E
148	148	FFECTIVEDATE.—The amendments made by 22
149	149	this section shall apply to taxable years beginning after 23
150	150	December 31, 2024. 24
151	151	Æ
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