I 108th CONGRESS 2d Session H. R. 4034 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.
1.
Short title
This Act may be cited as the &short-title1;.
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:
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.
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.