To amend the Internal Revenue Code of 1986 to provide that the exclusion for qualified scholarships shall apply to allowances for room, board, and special needs services.

H.R. 4662 would change federal tax law to allow students to use scholarship money for room, board, and special needs services without paying income tax on those funds. Under current law, scholarships are generally only tax-free when used for tuition, fees, books, and required equipment. By expanding this definition, the bill would reduce the tax burden on students and families who use financial aid to cover the full cost of living and support services while attending college.