Page:United States Statutes at Large Volume 111 Part 1.djvu/831

 PUBLIC LAW 105-34—AUG. 5, 1997 111 STAT. 807 "(C) MODIFIED ADJUSTED GROSS INCOME.— The term 'modified adjusted gross income' means adjusted gross income determined— "(i) without regard to this section and sections 135, 137, 911, 931, and 933, and "(ii) after appHcation of sections 86, 219, and 469. For purposes of sections 86, 135, 137, 219, and 469, adjusted gross income shall be determined without regard to the deduction allowed under this section. " (c) DEPENDENTS NOT ELIGIBLE FOR DEDUCTION.—No deduction shall be allowed by this section to an individual for the taxable year if a deduction under section 151 with respect to such individual is allowed to another taxpayer for the taxable year beginning in the calendar year in which such individual's taxable year begins. "(d) LIMIT ON PERIOD DEDUCTION ALLOWED. — A deduction shall be allowed under this section only with respect to interest paid on any qualified education loan during the first 60 months (whether or not consecutive) in which interest payments are required. For fmrposes of this paragraph, any loan and all refinancings of such oan shall be treated as 1 loan. "(e) DEFINITIONS.— For purposes of this section— "(1) QUALIFIED EDUCATION LOAN.— The term 'quahfied education loan' means any indebtedness incurred to pay qualified higher education expenses— "(A) which are incurred on behalf of the taxpayer, the taxpayer's spouse, or any dependent of the taxpayer as of the time the indebtedness was incurred, "(B) which are paid or incurred within a reasonable period of time before or after the indebtedness is incurred, and "(C) which are attributable to education furnished during a period during which the recipient was an eligible student. Such term includes indebtedness used to refinance indebtedness which qualifies as a qualified education loan. The term 'qualified education loan' shall not include any indebtedness owed to a person who is related (within the meaning of section 267(b) or 707(b)(1)) to the taxpayer. "(2) QUALIFIED HIGHER EDUCATION EXPENSES. —The term 'qualified higher education expenses' means the cost of attendance (as defined in section 472 of the Higher Education Act of 1965, 20 U.S.C. 108711, as in effect on the day before the date of the enactment of this Act) at an eligible educational institution, reduced by the sum of— "(A) the amount excluded from gross income under section 127, 135, or 530 by reason of such expenses, and "(B) the amount of any scholarship, allowance, or pay- ment described in section 25A(g)(2). For purposes of the preceding sentence, the term 'eligible educational institution' has the same meaning given such term by section 25A(f)(2), except that such term shall also include an institution conducting an internship or residency program leading to a degree or certificate awarded by an institution of higher education, a hospital, or a health care facility which offers postgraduate training. "(3) ELIGIBLE STUDENT.— The term 'eligible student' has the meaning given such term by section 25A(b)(3).

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