For the fiscal year beginning in 2009 and 2010, the Stimulus Act includes taxpayer-friendly changes to the HOPE Scholarship tax credit for higher education (Hope Credit). The Hope credit is also temporarily renamed American Opportunity Credit (Credit Opportunity). Under the rules renovated Credit Opportunity equals 100% of first $ 2,000 of qualified post secondary education expenses paid during the year, over 25% of first $ 2,000. Thus, the maximum annual credit is $ 2,500. Under previous law, the maximum Hope credit for 2009 was only $ 1,800, and would probably be about the same for 2010.
