PUBLIC LAW 100-647—NOV. 10, 1988
102 STAT. 3689
"(B) INFLATION ADJUSTMENT.—In the case of any taxable year beginning in a calendar year after 1990, each dollar amount contained in subparagraph (A) shall be increased by an amount equal to— "(i) such dollar £unount, multiplied by "(ii) the cost-of-living adjustment under section l(fK3) for the calendar year in which the taxable year begins, determined by substituting 'calendar year 1989' for 'calendar year 1987' in subparagraph (B) thereof. "(C) ROUNDING.—If any amount as adjusted under subparagraph (A) or (B) is not a multiple of $50, such amount shall be rounded to the nearest multiple of $50 (or if such amount is a multiple of $25, such amount shall be rounded to the next highest multiple of $50). "(c) DEFINITIONS.—For purposes of this section— "(1)
QUALIFIED UNITED STATES SAVINGS BOND.—The
term
'qualified United States savings bond' means any United States savings bond issued— "(A) after December 31, 1989, "(B) to an individual who has attained age 24 before the date of issuance, and "(C) at discount under section 3105 of title 31, United States (Dode. "(2) QUALIFIED HIGHER EDUCATION EXPENSES.—
"(A) IN GENERAL.—The term 'qualified higher education expenses' means tuition and fees 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. "(B) EXCEPTION FOR EDUCATION INVOLVING SPORTS, ETC.—
Such term shall not include expenses with respect to any course or other education involving sports, games, or hobbies other than as part of a degree program. "(3) EuGiBLE EDUCATIONAL INSTITUTION.—The term 'eligible educational institution' means— "(A) an institution described in section 1201(a) or subparagraph (C) or (D) of section 481(a)(l) of the Higher Education Act of 1965 (as in effect on October 21, 1988), and "(B) an area vocational education school (as defined in subparagraph (C) or (D) of section 521(3) of the Carl D. Perkins Vocational Education Act) which is in any State (as defined in section 521(27) of such Act), as such sections are in effect on October 21, 1988. "(4) MODIFIED ADJUSTED GROSS INCOME.—The term 'modified adjusted gross income' means the adjusted gross income of the taxpayer for the taxable year determined— "(A) without regard to this section and sections 911, 931, and 933, and "(B) after the application of sections 86, 469, and 219. "(d) SPECIAL RULES.— "(1) ADJUSTMENT FOR CERTAIN SCHOLARSHIPS AND VETERANS
BENEFITS.—The amount of qualified higher education expenses otherwise taken into account under suteection (a) respect to the
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