123STA T . 313 PUBLIC LA W 111 –5—FE B.1 7, 2 0 0 9SEC.10 0 3 . T E MPORA R YIN CREASE O F REF U N D A BL E PORTION OF C H ILD CREDIT. (a)INGE NE RAL.—P a r a g ra ph ( 4 ) ofsecti o n2 4( d )isa m ended to read as fo l lo w s
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‘(4) SP E CI ALR U LE FO R 20 0 9 AN D 20 1 0.— N otwithstanding paragraph ( 3 ) , in the case of an y ta x a b le year beginning in 2 0 0 9 or 20 1 0, the dollar amo u nt in effect for such taxable year under paragraph (1)( B )(i) shall be $ 3,000. ’ ’. (b) E FFEC T I V E D ATE.— T he amendments made by this section shall apply to taxable years beginning after December 31, 200 8 . SEC. 100 4 . AMERICAN OPPORTUNITY TA X CREDIT. (a) IN GENERAL.—Section 2 5A (relating to H ope scholarship credit) is amended by redesignating subsection (i) as subsection ( j ) and by inserting after subsection (h) the following new subsection: ‘‘(i) A M ERICAN O PPORTUNIT Y TA XC REDIT.—In the case of any taxable year beginning in 2009 or 2010— ‘‘(1) INCREA S E IN CREDIT.—The Hope Scholarship Credit shall be an amount e q ual to the sum of— ‘‘(A) 100 percent of so much of the qualified tuition and related expenses paid by the taxpayer during the tax - able year (for education furnished to the eligible student during any academic period beginning in such taxable year) as does not exceed $2,000, plus ‘‘(B) 25 percent of such expenses so paid as exceeds $2,000 but does not exceed $4,000. ‘‘(2) CREDIT ALLO W ED FOR FIRST 4 YEARS OF POST-SEC- ONDARY EDUCATION.—Subparagraphs (A) and (C) of subsection (b)(2) shall be applied by substituting ‘4’ for ‘2’. ‘‘(3) Q UALIFIED TUITION AND RELATED EXPENSES TO INCLUDE RE Q UIRED COURSE MATERIALS.—Subsection (f)(1)(A) shall be applied by substituting ‘tuition, fees, and course materials’ for ‘tuition and fees’. ‘‘(4) INCREASE IN A G I LIMITS FOR H OPE SCHOLARSHIP CREDIT.—In lieu of applying subsection (d) with respect to the Hope Scholarship Credit, such credit (determined without regard to this paragraph) shall be reduced (but not below z ero) by the amount which bears the same ratio to such credit (as so determined) as— ‘‘(A) the excess of— ‘‘(i) the taxpayer’s modified adjusted gross income (as defined in subsection (d)(3)) for such taxable year, o v er ‘‘(ii) $80,000 ($1 6 0,000 in the case of a joint return), bears to ‘‘(B) $10,000 ($20,000 in the case of a joint return). ‘‘(5) CREDIT ALLOWED AGAINST ALTERNATIVE MINIMUM TAX.—In the case of a taxable year to which section 26(a)(2) does not apply, so much of the credit allowed under subsection (a) as is attributable to the Hope Scholarship Credit shall not exceed the excess of— ‘‘(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over ‘‘(B) the sum of the credits allowable under this subpart (other than this subsection and sections 23, 25D, and 30D) and section 2 7 for the taxable year. Ap p licab ili ty.26USC 2 4no t e . 26 USC 24.
