article: SECTION 1. SHORT TITLE; REFERENCES. (a) Short Title.--This Act may be cited as the ``Higher Education Fairness Act of 1997''. (b) References.--Except as otherwise expressly provided, whenever in this Act an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Higher Education Act of 1965 (20 U.S.C. 1001 et seq.). SEC. 2. FAMILY CONTRIBUTION FOR DEPENDENT STUDENTS. (a) Parents' Available Income.--Section 475(c)(1) is amended-- (1) by striking ``and'' at the end of subparagraph (D); (2) by striking the period at the end of subparagraph (E) and inserting ``; and''; and (3) by adding at the end the following new subparagraph: ``(F) the amount of any tax credit taken by the parents under section 25A of the Internal Revenue Code of 1986.''. (b) Student Contribution From Available Income.--Section 475(g)(2) is amended-- (1) by striking ``and'' at the end of subparagraph (C); (2) by striking ``$1,750'' in subparagraph (D) and inserting ``$2,250 (or a successor amount prescribed by the Secretary under section 478)''; (3) by striking the period at the end of subparagraph (D); and (4) by inserting after subparagraph (D) the following new subparagraph: ``(E) the amount of any tax credit taken by the student under section 25A of the Internal Revenue Code of 1986.''. SEC. 3. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITHOUT DEPENDENTS OTHER THAN A SPOUSE. (a) Family's Contribution From Available Income.--Section 476(b)(1)(A) (20 U.S.C. 1087pp(b)(1)(A)) is amended-- (1) by striking ``and'' at the end of clause (iv); and (2) by inserting after clause (v) the following new clause: ``(vi) the amount of any tax credit taken under section 25A of the Internal Revenue Code of 1986; and''. (b) Income Protection Allowances.--Section 476(b)(1)(A)(iv) is amended-- (1) by striking ``allowance of--'' and inserting ``allowance of the following amount (or a successor amount prescribed by the Secretary under section 478):''; (2) by striking ``$3,000'' each place it appears in subclauses (I) and (II) and inserting ``$5,500''; and (3) by striking ``$6,000'' in subclause (III) and inserting ``$8,500''. SEC. 4. FAMILY CONTRIBUTION FOR INDEPENDENT STUDENTS WITH DEPENDENTS OTHER THAN A SPOUSE. Section 477(b)(1) (20 U.S.C. 1087qq(b)(1)) is amended-- (1) by striking ``and'' at the end of subparagraph (D); (2) by striking the period at the end of subparagraph (E) and inserting ``; and''; and (3) by adding at the end the following new subparagraph: ``(F) the amount of any tax credit taken under section 25A of the Internal Revenue Code of 1986.''. SEC. 5. REGULATIONS; UPDATED TABLES AND AMOUNTS. Section 478(b) (20 U.S.C. 1087rr(b)) is amended-- (1) by striking ``For each academic year'' and inserting the following: ``(1) Revised tables.--For each academic year''; and (2) by adding at the end the following new paragraph: ``(2) Revised amounts.--For each academic year after academic year 1997-1998, the Secretary shall publish in the Federal Register revised income protection allowances for the purpose of sections 475(g)(2)(D) and 476(b)(1)(A)(iv). Such revised allowances shall be developed by increasing each of the dollar amounts contained in such section by a percentage equal to the estimated percentage increase in the Consumer Price Index (as determined by the Secretary) between December 1996 and the December next preceding the beginning of such academic year, and rounding the result to the nearest $10.''. SEC. 6. DEFINITIONS. (a) Total Income.--Section 480(a)(2) (20 U.S.C. 1087vv(a)(2)) is amended-- (1) by striking ``individual, and'' and inserting ``individual,''; and (2) by inserting ``, and no portion of any tax credit taken under section 25A of the Internal Revenue Code of 1986'' before ``shall be included''. (b) Excludable Income.--Section 480(e) is amended (1) by striking ``and'' at the end of paragraph (3); (2) by striking the period at the end of paragraph (4) and inserting ``; and''; and (3) by adding after paragraph (4) the following new paragraph: ``(5) any tax credit taken under section 25A of the Internal Revenue Code of 1986.''. (c) Other Financial Assistance.--Section 480(j) is amended by adding at the end the following new paragraph: ``(4) Notwithstanding paragraph (1), a tax credit taken under section 25A of the Internal Revenue Code of 1986 shall not be treated as estimated financial assistance for purposes of section 471(3).''.
summary: Higher Education Fairness Act of 1997 - Amends the Higher Education Act of 1965 to revise certain need analysis formulas for student assistance. Requires deduction of the amount of the new Hope Scholarship and Lifetime Learning education expense tax credits taken under the Internal Revenue Code, as amended by the Taxpayer Relief Act of 1997 (Public Law 105-34), in calculating family available income for determination of expected family contribution (for all dependent and all independent students). (Defines such tax credits as excludable income, not to be treated as estimated financial assistance, for student assistance calculation purposes.) Increases the amounts of income protection allowances for dependent students and for independent students without dependents other than a spouse.