College Preparation Tax Credit Act of 2014

“25E. Credit for college preparation expenses

“(a) Allowance of credit—In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for such taxable year an amount equal to so much of the qualified college preparation expenses paid or incurred by the taxpayer during such taxable year as does not exceed $500.

“(b) Qualified college preparation expenses—For purposes of this section, the term qualified college preparation expenses means amounts paid or incurred for—

“(1) fees required for taking any Advanced Placement or International Baccalaureate exam,

“(2) fees required for taking the SAT, the ACT, or any SAT Subject Test,

“(3) expenses related to preparation (including tutorial services and preparation classes) for any exam described in paragraph (1) or (2),

“(4) fees and expenses related to applications for admission to pursue a postsecondary course of study at an eligible educational institution (as defined in section 25A(f)(2)), and

“(5) such other similar expenses and fees as the Secretary may by regulation prescribe.

“(c) Election—No credit shall be allowed under subsection (a) with respect to any expenses paid or incurred during the taxable year with respect to any individual for whom an election is not in effect under this section for such taxable year.

“(d) Credit allowed only for 3 taxable years—An election under this section with respect to any individual may not be made for any taxable year if such an election is in effect with respect to such individual for any 3 prior taxable years.

“(e) 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—

“(1) no credit shall be allowed under subsection (a) to such individual for such individual’s taxable year, and

“(2) qualified college preparation 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.”