A bill to amend the Internal Revenue Code of 1954 to allow a credit against income tax to individuals for certain expenses incurred in providing higher education.

Allows an income tax credit under the Internal Revenue Code for the expenses of higher education paid by the taxpayer during the taxable year for the higher education of any individual in the following amounts: (1) 100 percent of so much of the expenses as does not exceed $200, (2) 25 percent of the expenses as exceeds $200 but does not exceed $500, and (3) 5 percent of so much of such expenses as exceeds $500 but does not exceed $2500.

Provides for the proration of such credit between taxpayers where more than one taxpayer pays the expenses.

Provides for the reduction of the credit authorized by this Act by an amount equal to 2 percent of the amount by which the adjusted gross income of the taxpayer for the taxable year exceeds $15,000.

States that the amounts otherwise taken into account for determination of such credit shall be reduced by the amount of any scholarships, fellowships, grants, or veterans' educational benefits received during the taxable year.