119 HR 2097 IH: Education, Achievement, and Opportunity Act U.S. House of Representatives 2025-03-14 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I119th CONGRESS1st SessionH. R. 2097IN THE HOUSE OF REPRESENTATIVESMarch 14, 2025Mr. Smith of New Jersey introduced the following bill; which was referred to the Committee on Ways and MeansA BILLTo amend the Internal Revenue Code of 1986 to allow a refundable credit against income tax for tuition expenses incurred for each qualifying child of the taxpayer in attending public or private elementary or secondary school.

1.

Short title

This Act may be cited as the Education, Achievement, and Opportunity Act.

2.

Findings

Congress finds the following: (1)Private schools supplement the public school system and are a vital component of our Nation’s school network. (2)The public school system was created to serve students, not the other way around. Children should have the opportunity to attend the school system that is most conducive to developing their abilities, and parents have the right to choose the public or private school that best meets their child’s individual needs.

3.

Credit for elementary and secondary education expenses

(a)

In general

Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by inserting after section 36B the following new section:

36C.

Elementary and secondary education expenses

(a)

Allowance of credit

(1)

In general

In the case of an individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year the amount of the qualified education expenses paid by the taxpayer during the taxable year for each qualifying child of the taxpayer. (2)

Amount per child

The amount of credit allowable under paragraph (1) for any taxable year with respect to the qualified education expenses of each qualifying child of the taxpayer shall not exceed $10,000. (b)

Limitation based on adjusted gross income

(1)

In general

The amount of the credit allowable under subsection (a) (after the application of subsection (a)(2)) shall be reduced (but not below zero) by $50 for each $1,000 (or fraction thereof) by which the taxpayer’s modified adjusted gross income exceeds the threshold amount. (2)

Definitions and special rules

For purposes of this paragraph (1)— (A)

Threshold amount

The term threshold amount means— (i)$150,000 in the case of a joint return, and (ii)$75,000 in any other case. (B)

Modified adjusted gross income

The term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933. (C)

Marital status

Marital status shall be determined under section 7703. (c)

Definitions

For purposes of this section— (1)

Qualifying child

The term qualifying child has the meaning given such term in section 24(c). (2)

Qualified education expenses

(A)

In general

The term qualified education expenses means amounts paid for— (i)tuition and fees required for the enrollment or attendance of a student at a qualified educational institution, and (ii)so much of the following non-tuition expenses as does not exceed $1,500: (I)Computers, educational software, computer support services, and books required for courses of instruction at a qualified educational institution. (II)Academic tutoring (by a person other than the taxpayer). (III)Special needs services for qualifying children who are children with disabilities (as such term is defined in section 602(3) of the Individuals with Disabilities Education Act (20 U.S.C. 1401(3))). (IV)Fees for transportation services to and from a private school, if the transportation is provided by the school and the school charges a fee for the transportation. (V)Academic testing services. (B)

Amounts excluded

The term does not include special school fees for nonacademic purposes, including fees for student activities, athletics, insurance, school uniforms, and nonacademic after-school activities. (3)

Qualified educational institution

The term qualified educational institution means any public, charter, private, parochial, or religious school organized for the purpose of providing elementary or secondary education, or both, without regard to the religious nature, character, affiliation, mission, beliefs, or exercise of such school. (d)

Adjustment for coverdell savings account distributions

The amount of qualified education expenses taken into account under subsection (a) with respect to an individual for a taxable year shall be reduced (before the application of subsection (b)) by the sum of any amounts not includible in gross income under section 530(d)(2) for such taxable year by reason of the qualified elementary and secondary education expenses (as defined in section 530(b)(3)) of such individual for such taxable year.

. (b)

Technical amendments

(1)Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 36C, after 36B,. (2)The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36C the following new item: Sec. 36C. Elementary and secondary education expenses.. (c)

Effective date

The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.