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Tax Relief for Students: Tax-Free Pell Grants and Expanded Education Credits

This act aims to ease access to higher education by reducing financial burdens on students. It makes Pell Grants tax-free and expands the types of expenses that can be deducted under education tax credits, such as the American Opportunity and Lifetime Learning Credits. This means students and their families can expect greater savings and easier coverage of educational costs.
Key points
Pell Grants will no longer be included in taxable income, providing more financial support for students.
The list of expenses eligible for education tax credits (American Opportunity and Lifetime Learning Credits) is expanded to include computer equipment (up to $1,000), software, internet access, and child and dependent care expenses related to education.
These changes apply to taxable years beginning after December 31, 2024, impacting tax filings for 2025 and subsequent years.
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Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_2543
Sponsor: Rep. Doggett, Lloyd [D-TX-37]
Process start date: 2025-04-01
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Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Tax-Free Pell Grant Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_2543.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-04-01.

What are the main provisions?

Key points include:

  • Pell Grants will no longer be included in taxable income, providing more financial support for students.
  • The list of expenses eligible for education tax credits (American Opportunity and Lifetime Learning Credits) is expanded to include computer equipment (up to $1,000), software, internet access, and child and dependent care expenses related to education.
  • These changes apply to taxable years beginning after December 31, 2024, impacting tax filings for 2025 and subsequent years.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Doggett, Lloyd [D-TX-37].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Ways and Means.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-22.

CATEGORIES

Education Taxes Family