A bill to amend the Internal Revenue Code of 1954 to clarify the conditions under which scholarship and fellowship grants will be excluded from gross income.

Amends the Internal Revenue Code to provide that the extent of faculty supervision or participation with respect to the performance of teaching, research, or other services by individuals who are candidates for a degree shall not be relevant in determining whether such activities are required as a condition for receiving a degree for purposes of excluding amounts received for such services from gross income pursuant to provisions allowing a tax exclusion for scholarship and fellowship grants. Provides that all degree candidates do not have to perform substantially identical activities with respect to teaching, research, or other services for such activities to be found to be a condition for receiving a degree.