Bill > HR4174

This bill aims to expand the American Opportunity Tax Credit (AOTC) by increasing the credit amount, raising the income eligibility thresholds, and making the credit partially refundable. It also excludes Federal Pell Grants from gross income for tax purposes. The key provisions of the bill include: 1. Increasing the AOTC credit amount for students enrolled at least half-time, allowing a 100% credit on the first $2,000 of qualified tuition and related expenses and a 25% credit on the next $2,000. For other students, the credit is 25% on the first $10,000 of expenses. 2. Raising the income phaseout thresholds from $80,000 to $160,000 for joint filers and from $40,000 to $80,000 for single filers. 3. Making the lesser of the AOTC credit or $1,500 refundable, meaning eligible taxpayers can receive a refund even if they do not owe any income tax. 4. Excluding Federal Pell Grants from being counted as taxable income. The bill aims to expand access to higher education by increasing the financial assistance available through the AOTC and ensuring that Pell Grants do not reduce a student's tax benefits.