College Preparation Tax Credit Act of 2016

College Preparation Tax Credit Act of 2016 This bill amends the Internal Revenue Code to allow an individual taxpayer a tax credit for up to $500 of qualified college preparation expenses. An individual may use the credit for up to three years for qualified college preparation expenses that include: the fees required for taking any Advanced Placement or International Baccalaureate exam, the SAT, the ACT, or any SAT subject test; expenses related to preparation for the exams; fees and expenses related to applications for admission to pursue a postsecondary course of study at an institution of higher education; and similar expenses and fees prescribed by the Internal Revenue Service in regulations.