(II) "QUALIFIED TUITION AND RELATED EXPENSES" DOES NOT

INCLUDE:

1. EXPENSES WITH RESPECT TO ANY COURSE OR OTHER
EDUCATION INVOLVING SPORTS, GAMES, OR HOBBIES, UNLESS THOSE EXPENSES
ARE PART OF A DEGREE PROGRAM; OR

2. CHARGES FOR ROOM AND BOARD, STUDENT ACTIVITY
FEES, ATHLETIC FEES, INSURANCE EXPENSES, OR OTHER EXPENSES UNRELATED TO
A STUDENTS ACADEMIC COURSE OF INSTRUCTION.

(B) (1) SUBJECT TO PARAGRAPHS (2) AND (3) OF THIS SUBSECTION, AN
INDIVIDUAL MAY CLAIM A CREDIT AGAINST THE STATE INCOME TAX IN AN AMOUNT
EQUAL TO 30% OF UP TO $5,000 PAID BY THE INDIVIDUAL DURING THE TAXABLE YEAR
FOR QUALIFIED TUITION AND RELATED EXPENSES FOR THE INDIVIDUAL OR THE
INDIVIDUAL'S SPOUSE OR DEPENDENTS AND NOT REIMBURSED BY AN EMPLOYER OR
OTHERWISE. 

(2) (I) IF AN INDIVIDUAL'S FEDERAL ADJUSTED GROSS INCOME FOR
THE TAXABLE YEAR EXCEEDS $80,000 $65,000, THE CREDIT OTHERWISE ALLOWED
UNDER THIS SUBSECTION SHALL BE REDUCED BY 5% FOR EACH $1,000 OR FRACTION
OF $1,000 BY WHICH THE INDIVIDUAL'S FEDERAL ADJUSTED GROSS INCOME
EXCEEDS $80,000 $65,000.

 (II) IN THE CASE OF A MARRIED INDIVIDUAL FILING A SEPARATE

RETURN, IF THE INDIVIDUAL'S FEDERAL ADJUSTED GROSS INCOME FOR THE
TAXABLE YEAR EXCEEDS $40,000 $32,500, THE CREDIT OTHERWISE ALLOWED UNDER
THIS SUBSECTION SHALL BE REDUCED BY 5% FOR EACH $500 OR FRACTION OF $500
BY WHICH THE INDIVIDUAL'S FEDERAL ADJUSTED GROSS INCOME EXCEEDS $10,000
$32,500.

(III) THE CREDIT UNDER THIS SUBSECTION MAY NOT BE CLAIMED
BY A TAXPAYER: WHO MAY BE CLAIMED AS A DEPENDENT ON THE RETURN OF
ANOTHER TAXPAYER FOR THE TAXABLE YEAR

(3) (I) THE INDIVIDUAL ENROLLED IN THE APPROVED PROGRAM OR
APPROVED INDUSTRY CERTIFICATE PROGRAM WITH RESPECT TO WHICH A CREDIT
UNDER THIS SUBSECTION IS ALLOWED SHALL:

1. COMMENCE EMPLOYMENT IN THE STATE IN AN
OCCUPATION DIRECTLY RELATED TO THE APPROVED PROGRAM OR APPROVED
INDUSTRY CERTIFICATE PROGRAM WITHIN 1 YEAR AFTER SUCCESSFUL
COMPLETION OF THE APPROVED PROGRAM OR APPROVED INDUSTRY CERTIFICATE
PROGRAM; AND

2. CONTINUE EMPLOYMENT IN THE STATE IN AN
OCCUPATION DIRECTLY RELATED TO THE APPROVED PROGRAM OR APPROVED
INDUSTRY CERTIFICATE PROGRAM FOR 1 YEAR FOR EACH YEAR THAT A CREDIT
UNDER THIS SUBSECTION WAS ALLOWED WITH RESPECT TO THE APPROVED
PROGRAM OR APPROVED INDUSTRY CERTIFICATE PROGRAM.

(II) IF THE INDIVIDUAL ENROLLED IN THE APPROVED PROGRAM