Sec. 137703. Treatment of Federal Pell Grants for income tax purposes
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/bill/117/hr/5376/rh/section-137703·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 117(b)(1) is amended by striking received by an individual and all that follows and inserting received by an individual— as a scholarship or fellowship grant to the extent the individual establishes that, in accordance with the conditions of the grant, such amount was used for qualified tuition and related expenses, or as a Federal Pell Grant under section 401 of the Higher Education Act of 1965. . Section 25A(g)(2) is amended— in subparagraph (A), by inserting described in section 117(b)(1)(A) after a qualified scholarship , and in subparagraph (C), by inserting or Federal Pell Grant under section 401 of the Higher Education Act of 1965 after within the meaning of section 102(a) .
The amendment made by this section shall apply to taxable years beginning after December 31, 2021.