Bill > HR2543

This bill, known as the Tax-Free Pell Grant Act, proposes two key changes to the Internal Revenue Code. First, it expands the tax exclusion for Pell Grants, which are federal grants for low-income students pursuing higher education, by allowing these grants to be completely excluded from an individual's gross income when they are used for qualified educational expenses. Second, the bill broadens the American Opportunity and Lifetime Learning tax credits by expanding the definition of qualified educational expenses to include computer equipment, child and dependent care expenses, and course materials. Specifically, the bill allows taxpayers to claim up to $1,000 for computer equipment purchases and includes child care expenses incurred to enable a student's enrollment in an eligible educational institution. These changes would apply to taxable years beginning after December 31, 2024, providing students and families with additional financial relief by reducing their tax liability and expanding the types of educational expenses that can receive tax benefits.

Budget and Finance

https://www.congress.gov/bill/119th-congress/house-bill/2543/all-info