A bill to amend the Internal Revenue Code of 1954 to provide a credit against the individual income tax for certain expenses of higher education.

Amends the Internal Revenue Code to allow individual taxpayers an income tax credit for a portion of the expenses such taxpayers pay to attend an institution of higher education. Limits the amount of such credit to 75 percent of expenses under $200, 25 percent of expenses over $200 but under $500, and 10 percent of expenses over $500 but under $1,500.

Includes within the definition of "expenses of higher education" tuition and fees required for attendance at an institution of higher education, fees, books, supplies, and equipment required for coursework. Excludes expenses for meals, lodging, or similar living expenses. Defines "institution of higher education" as an educational institution which regularly offers education above the twelfth grade level and which qualifies as a charitable institution for purposes of the income tax deduction for charitable contributions.

Reduces the amount of expenses eligible for the credit by any amounts received by the taxpayer as tax-exempt scholarships, fellowships, or educational assistance for veterans.