section 530(d)(4)(B) of such Code is amended by striking 25A(g)(2) and inserting 25A(d)(3) . (8) Section 1400O of such Code is amended— (A) by striking 25A(f)(2) and inserting 25A(f)(3) , (B) by inserting (as in effect on the date of the enactment of this section) after 25A(b)(1) in paragraph (2), and (C) by inserting (as in effect on the date of the enactment of this section) after 25A(c)(1) in paragraph (3). (9) Subsection (e) of section 6050S of such Code is amended by striking subsection (g)(2) and inserting subsection (d)(3) . (10) Subparagraph (A) of section 6211(b)(4) of such Code is amended by striking subsection (i)(6) and inserting subsection (g) . (11) Section 6213(g)(2) of such Code is amended— (A) in subparagraph (J), by striking 25A(g)(1) and inserting 25A(d)(2) , and (B) in subparagraph (Q), by striking 25A(i)(8)(B) and inserting 25A(h)(2) and by striking 25A(i) and inserting 25A . (12) Subsection (g) of section 6695(g) of such Code is amended by striking 25A(a)(1) and inserting 25A(a) . (d) Clerical amendment The item relating to section 25A in the table of sections for subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended to read as follows: Sec. 25A. American Opportunity Tax Credit. . (e) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2017. 3. Expansion of pell grant exclusion from gross income (a) In general Paragraph (1) of section 117(b) of the Internal Revenue Code of 1986 is amended by striking received by an individual and all that follows and inserting received by an individual— (1) as a scholarship or fellowship grant to the extent the individual establishes that, in accordance with the conditions of the grant, such amount was used for qualified tuition and related expenses, or (2) as a Federal Pell Grant under section 401 of the Higher Education Act of 1965 (as in effect on the date of the enactment of the Expand American Educational Opportunity Act of 2017 ). . (b) Effective date