[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 600 Introduced in House (IH)]







106th CONGRESS
  1st Session
                                H. R. 600

To amend the Internal Revenue Code of 1986 to allow a refundable credit 
                        for education expenses.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 4, 1999

Mr. Rogan (for himself, Mr. Tancredo, Mr. Armey, Mr. Watts of Oklahoma, 
 Ms. Dunn, Mr. Bilirakis, Mr. Norwood, and Mr. Forbes) 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 a refundable credit 
                        for education expenses.

    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 ``Children's Education Tax Credit 
Act''.

SEC. 2. CREDIT FOR 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 redesignating section 35 as section 36 and by inserting 
after section 34 the following new section:

``SEC. 35. EDUCATION EXPENSES.

    ``(a) General Rule.--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 the education of any individual 
with respect to whom the taxpayer is allowed a deduction under section 
151(c).
    ``(b) Limitation.--The amount allowed as a credit under subsection 
(a) for any taxable year with respect to the qualified education 
expenses of any 1 individual shall not exceed $1,000.
    ``(c) Definitions.--For purposes of this section--
            ``(1) 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 an 
                        eligible educational institution, and
                            ``(ii) fees, tutoring, books, supplies, 
                        computer equipment (including related software 
                        and services) and other equipment required for 
                        courses of instruction at an eligible 
                        educational institution.
                    ``(B) Meals and lodging expenses not included.--
                Such term does not include any amount paid, directly or 
                indirectly, for meals, lodging, or similar personal, 
                living, or family expenses. In the event an amount paid 
                for tuition or fees includes an amount for meals, 
                lodging, or similar expenses which is not separately 
                stated, the portion of such amount which is 
                attributable to meals, lodging, or similar expenses 
                shall be determined under regulations prescribed by the 
                Secretary.
                    ``(C) Special rule for home schooling.--In the case 
                of education furnished in the home (as a substitute for 
                public education) which meets the requirements of State 
                law relating to compulsory school attendance, the term 
                `qualified education expenses' means amounts paid for 
                tutoring, books, supplies, computer equipment 
                (including related software and services), and other 
                equipment used in furnishing such education.
            ``(2) Eligible educational institution.--The term `eligible 
        educational institution' means--
                    ``(A) a secondary school,
                    ``(B) an elementary school, or
                    ``(C) any private, parochial, religious, or home 
                school organized for the purpose of providing 
                elementary or secondary education, or both.
            ``(3) Elementary and secondary schools.--The terms 
        `elementary school' and `secondary school' have the respective 
        meanings given such terms by section 14101 of the Elementary 
        and Secondary Education Act of 1965.
    ``(d) Adjustment for Certain Scholarships.--The amounts otherwise 
taken into account under subsection (a) as qualified education expenses 
of any individual during any period shall be reduced (before the 
application of subsection (b)) by the sum of the amounts received with 
respect to such individual for the taxable year as a qualified 
scholarship which under section 117 is not includable in gross income.
    ``(e) Regulations.--The Secretary shall prescribe such regulations 
as may be necessary to carry out the provisions of this section.''
    (b) Technical Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by striking ``or'' after ``1978,'' and 
        by inserting before the period ``, or enacted by the Children's 
        Education Tax Credit Act''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of such Code is amended by striking 
        the last item and inserting the following new items:

                              ``Sec. 35. Education expenses.
                              ``Sec. 36. Overpayments of tax.''
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after the date of the enactment of 
this Act.
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