Ill STAT. 802 PUBLIC LAW 105-34—AUG. 5, 1997 at an eligible educational institution for courses of instruction of such individual at such institution. "(B) EXCEPTION FOR EDUCATION INVOLVING SPORTS, ETC. —Such term does not include expenses with respect to any course or other education involving sports, games, or hobbies, unless, such course or other education is part of the individual's degree program. "(C) EXCEPTION FOR NONACADEMIC FEES. —Such term does not include student activity fees, athletic fees, insurance expenses, or other expenses unrelated to an individual's academic course of instruction. "(2) ELIGIBLE EDUCATIONAL INSTITUTION.—The term 'eligible educational institution' means an institution— "(A) which is described in section 481 of the Higher Education Act of 1965 (20 U.S.C. 1088), as in effect on the date of the enactment of this section, and "(B) which is eligible to participate in a program under title IV of such Act. "(g) SPECIAL RULES.— "(1) IDENTIFICATION REQUIREMENT.—No credit shall be allowed under subsection (a) to a taxpayer with respect to the qualified tuition and related expenses of an individual unless the taxpayer includes the name and taxpayer identification number of such individual on the return of tax for the taxable year. " (2) ADJUSTMENT FOR CERTAIN SCHOLARSHIPS, ETC. —The Eimount of qualified tuition and related expenses otherwise taken into account under subsection (a) with respect to an individual for an academic period shall be reduced (before the application of subsections (b), (c), and (d)) by the sum of any amounts paid for the benefit of such individual which are allocable to such period as— "(A) a qualified scholarship which is excludable from gross income under section 117, "(B) an educationed assistance allowance under chapter 30, 31, 32, 34, or 35 of title 38, United States Code, or under chapter 1606 of title 10, United States Code, and "(C) a payment (other than a gift, bequest, devise, or inheritance within the meaning of section 102(a)) for such individual's educational expenses, or attributable to such individual's enrollment at an eligible educational institution, which is excludable from gross income under any law of the United States. " (3) TREATMENT OF EXPENSES PAID BY DEPENDENT.— If a deduction under section 151 with respect to an individual is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins— "(A) no credit shall be allowed under subsection (a) to such individual for such individual's taxable year, and "(B) qualified tuition and related expenses paid by such individual during such individual's taxable year shall be treated for purposes of this section as paid by such other taxpayer. " (4) TREATMENT OF CERTAIN PREPAYMENTS. — If qualified tuition and related expenses are paid by the taxpayer during a taxable year for an academic period which begins during
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