Sec. 2. STEM qualified higher education expenses
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Part VII of subchapter B of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 222 the following new section: In the case of an individual, there shall be allowed as a deduction an amount equal to the STEM higher education expenses paid by the taxpayer during the taxable year. For purposes of this section, the term STEM higher education expense means any expense of a type which is taken into account in determining the cost of attendance (as defined in section 472 of the Higher Education Act of 1965 ( 20 U.S.C. 1087ll )) at an eligible educational institution with respect to the attendance of an individual— at such institution for the academic period for which the deduction under this section is being determined, majoring in a course of study at such institution leading to an associate degree or higher in— science, technology, engineering, or mathematics (within the meaning of section 131(g)(4) of the Higher Education Act of 1965 ( 20 U.S.C. 1015(g)(4) ), or education with a focus on any area described in subparagraph (A), and who at all times during such period is making satisfactory academic progress (as defined in section 668.34 of title 34, Code of Federal Regulations, or any successor regulation) in the pursuit of such degree.
For purposes of this section— The term eligible educational institution has the meaning given the term institution of higher education in section 102 of the Higher Education Act of 1965 (20 U.S.C. 1002). Subsection
(a)shall not apply to any costs of an individual for room and board while attending an eligible educational institution, unless such individual is an eligible individual (as defined in section 25A(b)(3)). If for any taxable year the deduction allowable under subsection
(a)exceeds the taxpayer’s taxable income (determined without regard to this section), the amount of STEM higher education expenses of the taxpayer attributable to such excess shall be treated as STEM higher education expenses paid by the taxpayer in the succeeding taxable year. No deduction shall be allowed under subsection
(a)to a taxpayer with respect to STEM higher education expenses of an individual unless the taxpayer includes the name and taxpayer identification number of the individual on the return of tax for the taxable year. If STEM higher education expenses are paid by the taxpayer during a taxable year for an academic period which begins during the first 3 months following such taxable year, such academic period shall be treated for purposes of this section as beginning during such taxable year. No deduction shall be allowed under subsection
(a)for any taxable year with respect to the STEM higher education expenses with respect to an individual if the taxpayer or any other person elects to have section 25A apply with respect to such individual for such year. The total amount of STEM higher education expenses shall be reduced by the amount of such expenses taken into account in determining any amount excluded under section 135, 529(c), or 530(d)(2). For purposes of the preceding sentence, the amount taken into account in determining the amount excluded under section 529(c)(1) shall not include that portion of the distribution which represents a return of any contributions to the plan. Rules similar to the rules of 25A(g)(2) shall apply for purposes of this section. No deduction shall be allowed under subsection
(a)to any individual with respect to whom a deduction under section 151 is allowable to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins. If the taxpayer is a nonresident alien individual for any portion of the taxable year, this section shall only apply if such individual is treated as a resident alien of the United States for purposes of this chapter by reason of an election under subsection
(g)or
(h)of section 6013. This section shall not apply to taxable years beginning more than 10 years after the date of the enactment of the STEM Education Opportunity Act. . Subsection
(a)of section 62 of such Code is amended by inserting after paragraph
(21)the following new paragraph: The deduction allowed by section 222A. . The table of sections for part VII of subchapter B of chapter 1 of such Code is amended by inserting after the item relating to section 222 the following new item: Sec. 222A. STEM qualified higher education expenses. . The amendments made by this section shall apply to payments made in taxable years beginning after the date of the enactment of this Act.
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