Bill > S2455

This bill, the Tax-Free Pell Grant Act, has the following key provisions: 1. It expands the exclusion of Pell Grants from gross income, allowing individuals to exclude Pell Grant funds received under the Higher Education Act from their taxable income. 2. It amends the Internal Revenue Code to clarify that Pell Grants are not subject to adjustments under the American Opportunity and Lifetime Learning Credits, ensuring that these credits can be claimed in addition to the Pell Grant exclusion. 3. It expands the American Opportunity and Lifetime Learning Credits to include expenses for computer or peripheral equipment, child and dependent care expenses, and course materials, in addition to tuition and fees. It also sets a $1,000 annual limit on the amount of computer or peripheral equipment expenses that can be claimed under these credits. These changes are intended to provide further tax benefits and financial support for students receiving Pell Grants and those enrolled in eligible educational institutions.