text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Educational Opportunity for All Act 
  of 2005''.
  
  SEC. 2. EDUCATIONAL OPPORTUNITY FOR ALL TAX CREDIT.
  
      (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
  of the Internal Revenue Code of 1986 is amended by redesignating 
  section 36 as section 37 and by inserting after section 35 the 
  following new section:
  
  ``SEC. 36. EDUCATIONAL OPPORTUNITY TAX CREDIT.
  
      ``(a) Allowance of Credit.--
              ``(1) In general.--There shall be allowed as a credit 
          against the tax imposed by this subtitle for the taxable year 
          an amount equal to the qualified tuition expenses paid by the 
          taxpayer during the taxable year (for education furnished 
          during any academic period beginning in such taxable year).
              ``(2) Per student limitation.--The credit allowed under 
          this section shall not exceed $4,000 with respect to any 
          individual.
      ``(b) Election Not to Have Section Apply.--A taxpayer may elect not 
  to have this section apply with respect to the qualified tuition 
  expenses of an individual for any taxable year.
      ``(c) Definitions.--For purposes of this section--
              ``(1) Qualified tuition expenses.--
                      ``(A) In general.--The term `qualified tuition 
                  expenses' means tuition 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,
                  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 fees or expenses unrelated 
                  to an individual's academic course of instruction.
                      ``(D) Job improvement included.--Such term shall 
                  include tuition expenses described in subparagraph (A) 
                  with respect to any course of instruction at an 
                  eligible educational institution to acquire or improve 
                  job skills.
              ``(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 the Taxpayer 
                  Relief Act of 1997, and
                      ``(B) which is eligible to participate in a program 
                  under title IV of such Act.
      ``(d) Special Rules.--
              ``(1) Identification requirement.--No credit shall be 
          allowed under subsection (a) to a taxpayer with respect to the 
          qualified tuition 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 amount 
          of qualified tuition expenses otherwise taken into account 
          under subsection (a) with respect to an individual for an 
          academic period shall be reduced 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 educational 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 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 expenses are paid by the taxpayer during a taxable year 
          for an academic period which begins during the first 3 months 
          following such taxable year, such academic period shall be 
          treated for purposes of this section as beginning during such 
          taxable year.
              ``(5) Denial of double benefit.--No credit shall be allowed 
          under this section for any expense for which a deduction is 
          allowed under any other provision of this chapter.
              ``(6) Coordination with hope scholarship and lifetime 
          learning credits.--The qualified tuition and related expenses 
          with respect to an individual for whom a Hope Scholarship 
          Credit or the Lifetime Learning Credit under section 25A is 
          allowed for the taxable year shall not be taken into account 
          under this section.
              ``(7)  No credit for married individuals filing separate 
          returns.--If the taxpayer is a married individual (within the 
          meaning of section 7703), this section shall apply only if the 
          taxpayer and the taxpayer's spouse file a joint return for the 
          taxable year.
              ``(8) Nonresident aliens.--If the taxpayer is a nonresident 
          alien individual for any portion of the taxable year, this 
          section shall apply only if such individual is treated as a 
          resident alien of the United States for purposes of this 
          chapter by reason of an election under subsection (g) or (h) of 
          section 6013.
      ``(e) Regulations.--The Secretary may prescribe such regulations as 
  may be necessary or appropriate to carry out this section, including 
  regulations providing for a recapture of the credit allowed under this 
  section in cases where there is a refund in a subsequent taxable year 
  of any amount which was taken into account in determining the amount of 
  such credit.''.
      (b) Refundability of Credit.--Paragraph (2) of section 1324(b) of 
  title 31, United States Code, is amended by inserting before the period 
  ``or enacted by the Educational Opportunity for All Act of 2005''.
      (c) Conforming Amendments.--
              (1) Sections 135(d)(2)(A), 222(c)(2)(A), 
          529(c)(3)(B)(v)(II), and 530(d)(2)(C)(i)(II) of the Internal 
          Revenue Code of 1986 are each amended by inserting ``or section 
          36'' after ``section 25A'' each place it appears.
              (2) Section 6213(g)(2)(J) of such Code is amended by 
          inserting ``or section 36(d)(1)'' after ``expenses)''.
              (3) The table of sections for subpart C of part IV of 
          subchapter A of chapter 1 of such Code is amended by striking 
          the item relating to section 36 and inserting the following:
  
          ``Sec. 36. Educational opportunity tax credit.
          ``Sec. 37. Overpayments of tax.''.
      (d) Effective Date.--The amendments made by this section shall 
  apply to expenses paid after December 31, 2004, for education furnished 
  in academic periods beginning after such date.
target: Educational Opportunity for All Act of 2005 - Amends the Internal Revenue Code to allow a refundable tax credit for qualfied tuition expenses. Defines "qualified tuition expenses" as tuition required for the enrollment of the taxpayer, the taxpayer's spouse or dependents at an institution of higher learning. Limits the annual amount of such credit to $4,000 per student.
feat_title: A bill to amend the Internal Revenue Code of 1986 to provide a refundable credit for certain education expenses.