[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4034 Introduced in House (IH)]






108th CONGRESS
  2d Session
                                H. R. 4034

 To amend the Internal Revenue Code of 1986 to allow a credit against 
    income tax for teacher classroom supply expenses, for improving 
     elementary and secondary education, and for contributions for 
scholarships to attend elementary and secondary schools, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 25, 2004

Mr. DeMint (for himself, Mrs. Musgrave, Mr. Barrett of South Carolina, 
and Mr. Hoekstra) 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 credit against 
    income tax for teacher classroom supply expenses, for improving 
     elementary and secondary education, and for contributions for 
scholarships to attend elementary and secondary schools, and for other 
                               purposes.

    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 ``National Education Advancement (NEA) 
and Teacher Relief Act''.

SEC. 2. CREDIT FOR CONTRIBUTIONS FOR THE BENEFIT OF 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 FOR THE BENEFIT OF 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 75 percent of the qualified charitable contributions of the 
taxpayer for the taxable year.
    ``(b) Maximum Credit.--
            ``(1) Individuals.--In the case of a taxpayer other than a 
        corporation, the credit allowed by subsection (a) for any 
        taxable year shall not exceed $500 ($1,000 in the case of a 
        joint return).
            ``(2) Corporations.--In the case of a corporation, the 
        credit allowed by subsection (a) shall not exceed $100,000.
    ``(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 
        aggregate amount allowable as a deduction under section 170 
        (determined without regard to subsection (d)(1)) for cash 
        contributions--
                    ``(A) to a school tuition organization,
                    ``(B) for the improvement, renovation, or 
                construction of a school facility that is used 
                primarily to provide education at the elementary or 
                secondary level, and
                    ``(C) for the acquisition of computer technology or 
                equipment (as defined in subparagraph (E)(i) of section 
                170(e)(6)), or for training related to the use of such 
                technology or equipment, for use in a school facility 
                described in subparagraph (B).
            ``(2) Certain expenses of elementary and secondary school 
        teachers.--
                    ``(A) In general.--In the case of an individual who 
                is an eligible educator, the term `qualified charitable 
                contribution' includes amounts allowable as a deduction 
                by section 162 paid or incurred by the eligible 
                educator in connection with books, supplies (other than 
                nonathletic supplies for courses of instruction in 
                health or physical education), computer equipment 
                (including related software and services) and other 
                equipment, and supplementary materials used by the 
                eligible educator in the classroom.
                    ``(B) Coordination with exclusions.--An amount 
                shall be allowed as a credit under this section for 
                expenses described in subparagraph (A) only to the 
                extent the amount of such expenses exceeds the amount 
                excludable under section 135, 529(c)(1), or 530(d)(2) 
                for the taxable year.
            ``(3) School tuition organization.--
                    ``(A) In general.--The term `school tuition 
                organization' means any organization which--
                            ``(i) is described in section 170(c)(2),
                            ``(ii) allocates at least 90 percent of its 
                        gross income and contributions and gifts to 
                        elementary and secondary school scholarships, 
                        and
                            ``(iii) awards scholarships to any student 
                        who is eligible for free or reduced cost lunch 
                        under the school program established under the 
                        Richard B. Russell National School Lunch Act.
                    ``(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 level.
            ``(4) Eligible educator.--
                    ``(A) In general.--The term `eligible educator' 
                means, with respect to any taxable year, an individual 
                who is a kindergarten through grade 12 teacher, 
                instructor, counselor, principal, or aide in a school 
                for at least 900 hours during a school year.
                    ``(B) School.--For purposes of subparagraph (A), 
                the term `school' means any school which provides 
                elementary education or secondary education 
                (kindergarten through grade 12), as determined under 
                State law.
            ``(5) School facility.--The term `school facility' shall 
        not include any stadium or other facility primarily used for 
        athletic contests or exhibitions or other events for which 
        admission is charged to the general public.
    ``(d) Special Rules.--
            ``(1) Denial of double benefit.--Amounts taken into account 
        under subsection (a) shall not be taken into account in 
        determining any deduction allowed under section 162 or 170.
            ``(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.
    ``(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 for the benefit of elementary and 
                            secondary schools.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2003.

SEC. 3. REVISION OF DEFINITION OF SCHOOL FOR PURPOSES OF QUALIFIED 
              ELEMENTARY AND SECONDARY EDUCATION EXPENSES.

    (a) In General.--Paragraph (4) of section 530(b) of the Internal 
Revenue Code of 1986 (defining qualified elementary and secondary 
education expenses) is amended--
            (1) in clauses (i) and (ii) of subparagraph (A), by 
        striking ``public, private, or religious'', and
            (2) in subparagraph (B), by inserting after ``any school'' 
        the following: ``, including a public, private, religious, or 
        home school,''.
    (b) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2003.
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