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.

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 100 percent of expenses under $200, 75 percent of expenses over $200 but under $500, and 25 percent of expense over $500 but under $1,500. Reduces the amount of such credit by one percent of the amount by which the adjusted gross income of the taxpayer exceeds $25,000.

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, or which offers accredited business, technical, or vocational school education.

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