[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 462 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 462

 To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax for contributions to charitable organizations which provide 
 scholarships for children to attend elementary and secondary schools.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 6, 2001

    Mr. Kyl introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax for contributions to charitable organizations which provide 
 scholarships for children to attend elementary and secondary schools.

    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 ``Leave No Child Behind Tax Credit Act 
of 2001''.

SEC. 2. CREDIT FOR CONTRIBUTIONS TO CHARITABLE ORGANIZATIONS WHICH 
              PROVIDE SCHOLARSHIPS FOR STUDENTS ATTENDING ELEMENTARY 
              AND SECONDARY SCHOOLS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by adding at the end 
the following new section:

``SEC. 30B. CREDIT FOR CONTRIBUTIONS TO CHARITABLE ORGANIZATIONS WHICH 
              PROVIDE SCHOLARSHIPS FOR STUDENTS ATTENDING ELEMENTARY 
              AND SECONDARY SCHOOLS.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year an amount 
equal to the qualified charitable contributions of the taxpayer for the 
taxable year.
    ``(b) Maximum Credit.--The credit allowed by subsection (a) for any 
taxable year shall not exceed $250 ($500, in the case of a joint 
return).
    ``(c) Qualified Charitable Contribution.--For purposes of this 
section--
            ``(1) In general.--The term `qualified charitable 
        contribution' means, with respect to any taxable year, the 
        amount allowable as a deduction under section 170 (determined 
        without regard to subsection (d)(1)) for cash contributions to 
        a school tuition organization.
            ``(2) School tuition organization.--
                    ``(A) In general.--The term `school tuition 
                organization' means any organization described in 
                section 170(c)(2) if the annual disbursements of the 
                organization for elementary and secondary school 
                scholarships are normally not less than 90 percent of 
                the sum of such organization's annual gross income and 
                contributions and gifts.
                    ``(B) Elementary and secondary school 
                scholarship.--The term `elementary and secondary school 
                scholarship' means any scholarship excludable from 
                gross income under section 117 for expenses related to 
                education at or below the 12th grade.
    ``(d) Special Rules.--
            ``(1) Denial of double benefit.--No deduction shall be 
        allowed under this chapter for any contribution for which 
        credit is allowed under this section.
            ``(2) Application with other credits.--The credit allowable 
        under subsection (a) for any taxable year shall not exceed the 
        excess (if any) of--
                    ``(A) the regular tax for the taxable year, reduced 
                by the sum of the credits allowable under subpart A and 
                the preceding sections of this subpart, over
                    ``(B) the tentative minimum tax for the taxable 
                year.
            ``(3) Controlled groups.--All persons who are treated as 
        one employer under subsection (a) or (b) of section 52 shall be 
        treated as 1 taxpayer for purposes of this section.
    ``(e) Election To Have Credit Not Apply.--A taxpayer may elect to 
have this section not apply for any taxable year.''.
    (b) Clerical Amendment.--The table of sections for subpart B of 
part IV of subchapter A of chapter 1 of such Code is amended by adding 
at the end the following new item:

                              ``Sec. 30B. Credit for contributions to 
                                        charitable organizations which 
                                        provide scholarships for 
                                        students attending elementary 
                                        and secondary schools.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.
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