1. Short title This Act may be cited as the Tax-Free Pell Grant Act . 2. Expansion of Pell Grant exclusion from gross income (a) In general Paragraph section 117(b)(1) 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— (A) 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 (B) 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 Tax-Free Pell Grant Act ). . (b) No adjustment under American Opportunity and Lifetime Learning Credits Section 25A(g)(2)(A) of such Code is amended by striking a qualified scholarship which and inserting a qualified scholarship which is described in section 117(b)(1)(A) and which . (c) Effective date The amendments made by this section shall apply to taxable years beginning after December 31, 2022. 3. Expansion of American Opportunity and Lifetime Learning Credits (a) In general Section 25A of the Internal Revenue Code of 1986 is amended— (1) in subsection (f)(1)— (A) in subparagraph (A), by striking tuition and fees inserting tuition, fees, computer or peripheral equipment, child and dependent care expenses, and course materials , (B) by striking subparagraph (D), and (C) by adding at the end the following new subparagraphs: (D) Child and dependent care expenses For purposes of this paragraph— (i) In general The term child and dependent care expenses means amounts paid for the following expenses, but only if such expenses are incurred to enable the taxpayer to be enrolled in an eligible educational institution for any period for which there are 1 or more qualifying individuals with respect to the taxpayer: (I) expenses for household services, and (II) expenses for the care of a qualifying individual. Such term shall not include any amount paid for services outside the