A bill to amend the Internal Revenue Code of 1954 to allow a taxpayer a deduction from gross income for tuition and certain transportation expenses paid by him in connection with education of himself, his spouse, or any of his dependents at an institution of higher education.

Allows an income tax deduction for any amounts paid during the taxable year for: (1) the tuition of the taxpayer or any other individual at an institution of higher education, if he is regularly enrolled in such institution at a level above the twelfth grade and is an individual with respect to whom the taxpayer is entitled for the taxable year to an exemption; and (2) the expenses incurred by the taxpayer or such other individual for transportation to and from such institution if he is living away from home while so enrolled, once each regular semester.

Reduces the amount allowable as a deduction by any amounts received by the taxpayer for scholarships and veterans' benefits.