Credit for elementary and secondary school supply expenses

(a)

In general

Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting before section 26 the following new section:

25F.

Elementary and secondary school supplies

(a)

In general

In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the eligible elementary and secondary school supply expenses paid or incurred by the taxpayer during the taxable year.(b)

Limitations

(1)

Dollar limitation

The credit allowed under subsection (a) for the taxable year shall not exceed $200.(2)

Income limitation

(A)

In general

The amount allowable as a credit under subsection (a) for any taxable year shall be reduced (but not below zero) by an amount which bears the same ratio to the amount so allowable (determined without regard to this paragraph but with regard to paragraph (1)) as—(i)the amount (if any) by which the taxpayer’s modified adjusted gross income exceeds $150,000, bears to(ii)$65,000.(B)

Modified adjusted gross income

For purposes of this paragraph, the term modified adjusted gross income means the adjusted gross income of the taxpayer for the taxable year increased by any amount excluded from gross income under section 911, 931, or 933.(c)

Eligible elementary and secondary school supply expenses

For purposes of this section, the term eligible elementary and secondary school supply expenses means expenses for books, supplies, and other equipment which are paid or incurred in the connection with the enrollment or attendance of a dependent of the taxpayer (with respect to whom the taxpayer is allowed a deduction under section 151(c)) as an elementary or secondary school student at a public, private, or religious school.(d)

Coordination with Coverdell education savings accounts

The taxpayer shall not take into account any eligible elementary and secondary school supply expenses under subsection (a) to the extent such expenses are taken into account as qualified education expenses under section 530(d)(2)(A).

(b)

Clerical amendment

The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting before the item relating to section 26 the following new item:

Sec. 25F. Elementary and secondary school supplies.

(c)

Effective date

The amendments made by this section shall apply to taxable years beginning after December 31, 2023.