Amends the Internal Revenue Code to increase: (1 ) the amount of the Hope Scholarship income tax credit to 100 percent of tuition and related expenses up to $2,500, and (2) the number of years for which the credit can be claimed from two to four years. Makes such credit and the Lifetime Learning credit refundable.
Directs the Secretary of the Treasury to establish a program for making advance payments of Hope Scholarship and Lifetime Learning income tax credit amounts to schools for the benefit of the taxpayer. Requires a taxpayer for whom an advance payment is made to file specified informational returns.