The new credit modifies the existing Hope credit for tax years 2009 and 2010, making it available to a broader range of taxpayers, including many with higher incomes and those who owe no tax. It also adds required course materials to the list of qualifying expenses and allows the credit to be claimed for four post-secondary education years instead of two. Many of those eligible will qualify for the maximum annual credit of $2,500 per student.

The full credit is available to individuals whose modified adjusted gross income is $80,000 or less, or $160,000 or less for married couples filing a joint return. The credit is phased out for taxpayers with incomes above these levels. These income limits are higher than under the existing Hope and lifetime learning credits. For more info check out this post...

http://johnrdundon.com/american-opportunity-credit-2/

Also be aware of scams in this area - check out this post on American Opportunity Tax Credit Scams ...

http://johnrdundon.com/irs-tax-preparation-scams-the-american-opportunity-tax-credit/