Bill > HR3000

This bill, the "Tax-Free Pell Grant Act," aims to expand the exclusion of Pell Grants from gross income for tax purposes. Specifically, it amends the Internal Revenue Code to explicitly state that Federal Pell Grants, which are need-based financial aid provided to low-income college students, are excluded from an individual's taxable income. Additionally, the bill expands the American Opportunity and Lifetime Learning tax credits to include expenses for computer or peripheral equipment, as well as child and dependent care expenses incurred to enable the taxpayer to be enrolled in an eligible educational institution. These changes are effective for taxable years beginning after December 31, 2022.