College Tuition and Debt Relief Act of 2014

College Tuition and Debt Relief Act of 2014 - Amends the Internal Revenue Code to: (1) make permanent the American Opportunity tax credit, (2) increase the allowable amount of such credit and adjust such amount for inflation for taxable years beginning after 2015, and (3) increase the tax deduction for student loan interest and adjust such increased amount for inflation for taxable years beginning after 2015.

[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5509 Introduced in House (IH)]

113th CONGRESS
  2d Session
                                H. R. 5509

 To amend the Internal Revenue Code of 1986 to increase and extend the 
   American Opportunity Tax Credit and to increase the student loan 
                          interest deduction.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 17, 2014

Mr. Braley of Iowa introduced the following bill; which was referred to 
                    the Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to increase and extend the 
   American Opportunity Tax Credit and to increase the student loan 
                          interest deduction.

    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 ``College Tuition and Debt Relief Act 
of 2014''.

SEC. 2. AMERICAN OPPORTUNITY TAX CREDIT INCREASE AND EXTENSION.

    (a) Credit Made Permanent.--Section 25A(i) of the Internal Revenue 
Code of 1986 is amended by striking ``and before 2018''.
    (b) Increase in Credit Amount.--Paragraph (1) of section 25A(i) of 
the Internal Revenue Code of 1986 is amended--
            (1) in subparagraph (A) by striking ``$2,000'' and 
        inserting ``$2,500'', and
            (2) in subparagraph (B) by striking ``as exceeds $2,000 but 
        does not exceed $4,000'' and inserting ``as exceeds $2,500 but 
        does not exceed $4,500''.
    (c) Adjustment for Inflation.--Section 25A(i) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(7) Adjustments for inflation.--In the case of a taxable 
        year beginning after December 31, 2015, each of the dollar 
        amounts in subparagraph (A) and (B) of paragraph (1) and clause 
        (ii) of paragraph (4)(A) shall be increased by an amount equal 
        to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) 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 2014' for `calendar year 1992' in 
                subparagraph (B) thereof.
        If any amount as increased under the preceding sentence is not 
        a multiple of $10, such amount shall be rounded to the nearest 
        multiple of $10.''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

SEC. 3. STUDENT LOAN INTEREST DEDUCTION INCREASE.

    (a) In General.--Paragraph (1) of section 221(b) of the Internal 
Revenue Code of 1986 is amended to read as follows:
            ``(1) In general.--Except as provided in paragraph (2), the 
        deduction allowed by subsection (a) for the taxable year shall 
        not exceed $5,000.''.
    (b) Adjustment for Inflation.--
            (1) In general.--Section 221(f) of the Internal Revenue 
        Code of 1986 is amended by redesignating paragraph (2) as 
        paragraph (3) and by inserting after paragraph (1) the 
        following new paragraph:
            ``(2) Adjustment for inflation.--In the case of a taxable 
        year beginning after December 31, 2015, the $5,000 dollar 
        amount in paragraph (1) shall be increased by an amount equal 
        to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) 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 2014' for `calendar year 1992' in 
                subparagraph (B) thereof.''.
            (2) Conforming amendment.--Section 221(f)(3) of the 
        Internal Revenue Code of 1986, as redesignated by paragraph 
        (1), is amended to read as follows:
            ``(3) Rounding.--
                    ``(A) Modified adjusted gross income thresholds.--
                If any amount as adjusted under paragraph (1) is not a 
                multiple of $5,000, such amount shall be rounded to the 
                next lowest multiple of $5,000.
                    ``(B) Deduction limitation.--If any amount as 
                increased under paragraph (2) is not a multiple of $10, 
                such amount shall be rounded to the nearest multiple of 
                $10.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.
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