[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4222 Introduced in House (IH)]







                                    


104th CONGRESS
  2d Session
                                H. R. 4222

   To amend the Internal Revenue Code of 1986 to allow individuals a 
    credit against income tax for tuition and related expenses for 
             nonpublic elementary and secondary education.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           September 26, 1996

 Mr. Stockman introduced the following bill; which was referred to the 
                      Committee on Ways and Means

_______________________________________________________________________

                                 A BILL


 
   To amend the Internal Revenue Code of 1986 to allow individuals a 
    credit against income tax for tuition and related expenses for 
             nonpublic elementary and secondary education.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Educational Freedom Act of 1996''.

SEC. 2. CREDIT FOR TUITION AND RELATED EXPENSES FOR NONPUBLIC 
              ELEMENTARY AND SECONDARY EDUCATION.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 23 the 
following new section:

``SEC. 24. TUITION AND RELATED EXPENSES FOR NONPUBLIC ELEMENTARY AND 
              SECONDARY EDUCATION.

    ``(a) Allowance of Credit.--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 qualified educational 
expenses paid during such taxable year for the elementary or secondary 
education of any dependent (as defined in section 152) of the taxpayer 
at a qualified educational institution.
    ``(b) Limitations.--
            ``(1) Maximum credit.--The credit allowed by this section 
        shall not exceed $3,000 per student for any taxable year.
            ``(2) Limitation based on adjusted gross income.--No credit 
        shall be allowed under this section for any taxable year for 
        which the taxpayer's adjusted gross income exceeds $90,000.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified educational expenses.--The term `qualified 
        educational expenses' means tuition, fees, books, supplies, 
        equipment, and other necessary and proper expenses in 
        connection with the elementary or secondary education of the 
        student at a qualified educational institution.
            ``(2) Qualified educational institution.--The term 
        `qualified educational institution' means any educational 
        institution (including any private, parochial, religious, or 
        home school) organized for the purpose of providing elementary 
        or secondary education, or both. Such term shall not include 
        any public school.''
    (b) Clerical Amendment.--The table of sections for such subpart A 
is amended by inserting after the item relating to section 23 the 
following new item:

                              ``Sec. 24. Tuition and related expenses 
                                        for nonpublic elementary and 
                                        secondary education.''
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid after the date of the enactment of this Act in 
taxable years ending after such date.
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