PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 801 such taxable year) as does not exceed $10,000 ($5,000 in the case of taxable years beginning before Jsinuary 1, 2003). " (2) SPECIAL RULES FOR DETERMINING EXPENSES. — " (A) COORDINATION WITH HOPE SCHOLARSHIP.—The qualified tuition and related expenses with respect to an individual who is an eligible student for whom a Hope Scholarship Credit under subsection (a)(1) is allowed for the taxable year shall not be taken into account under this subsection. "(B) EXPENSES ELIGIBLE FOR LIFETIME LEARNING CREDIT.—For purposes of paragraph (1), qualified tuition and related expenses shall include expenses described in subsection (f)(1) with respect to any course of instruction at an eligible educational institution to acquire or improve job skills of the individual. " (d) LIMITATION BASED ON MODIFIED ADJUSTED GROSS INCOME.— "(1) IN GENERAL.— The amount which would (but for this subsection) be taken into account under subsection (a) for the taxable year shall be reduced (but not below zero) by the amount determined under paragraph (2). "(2) AMOUNT OF REDUCTION.—The amount determined under this paragraph is the amount which bears the same ratio to the amount which would be so taken into account as— "(A) the excess of— "(i) the taxpayer's modified adjusted gross income for such taxable year, over "(ii) $40,000 ($80,000 in the case of a joint return), bears to "(B) $10,000 ($20,000 in the case of a joint return). "(3) MODIFIED ADJUSTED GROSS INCOME.— The term 'modified adjusted gross income' means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933. " (e) ELECTION TO HAVE SECTION APPLY. — "(1) IN GENERAL.— No credit shall be allowed under subsection (a) for a taxable year with respect to the qualified tuition and related expenses of an individual unless the taxpayer elects to have this section apply with respect to such individual for such year. "(2) COORDINATION WITH EXCLUSIONS.— An election under this subsection shall not take effect with respect to an individual for any taxable year if any portion of any distribution during such taxable year from an education individual retirement account is excluded from gross income under section 530(d)(2). "(f) DEFINITIONS.— For purposes of this section— "(1) QUALIFIED TUITION AND RELATED EXPENSES.— "(A) IN GENERAL.—The term 'qualified tuition and related expenses' means tuition and fees required for the enrollment or attendance of— "(i) the taxpayer, "(ii) the taxpayer's spouse, or "(iii) any dependent of the taxpayer with respect to whom the taxpayer is allowed a deduction under section 151,
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