Bill

Bill > S2920


US S2920

US S2920
Tax-Free Pell Grant Act


summary

Introduced
09/26/2023
In Committee
09/26/2023
Crossed Over
Passed
Dead
01/03/2025

Introduced Session

118th Congress

Bill Summary

A bill to amend the Internal Revenue Code of 1986 to expand the exclusion of Pell Grants from gross income.

AI Summary

This bill, the Tax-Free Pell Grant Act, amends the Internal Revenue Code of 1986 to expand the exclusion of Pell Grants from gross income. Specifically, it excludes Federal Pell Grants, which are need-based financial aid for college students, from being counted as taxable income. Additionally, the bill ensures that Pell Grants are not considered as part of the calculation for the American Opportunity Tax Credit and Lifetime Learning Credit, which are tax credits that help offset the costs of higher education. The provisions in this bill would apply to taxable years starting after December 31, 2022.

Committee Categories

Budget and Finance

Sponsors (3)

Last Action

Read twice and referred to the Committee on Finance. (on 09/26/2023)

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