[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 406 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 406

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 26, 2005

   Mr. Paul (for himself, Mr. Bartlett of Maryland, Mr. Norwood, Mr. 
 Sensenbrenner, Mr. Tancredo, Mrs. Musgrave, and Mr. Mario Diaz-Balart 
 of Florida) 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 public 
           and 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 ``Family Education Freedom Act of 
2005''.

SEC. 2. CREDIT FOR TUITION AND RELATED EXPENSES FOR PUBLIC AND 
              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 25B the 
following new section:

``SEC. 25C. TUITION AND RELATED EXPENSES FOR PUBLIC AND 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) Limitation.--The credit allowed by this section shall not 
exceed $3,000 per student for any taxable year.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualified educational expenses.--The term `qualified 
        educational expenses' means cost of attendance in connection 
        with the elementary or secondary education of the student at a 
        qualified educational institution. Under regulations prescribed 
        by the Secretary, rules similar to the rules relating to cost 
        of attendance (within the meaning of section 472 of the Higher 
        Education Act of 1965 (20 U.S.C. 1087ll) (as in effect on the 
        date of the enactment of this paragraph) shall apply for 
        purposes of the preceding sentence.
            ``(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.
    ``(d) Cost-of-Living Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning in a calendar year after 2005, the $3,000 amount 
        contained in subsection (b) shall be increased by an amount 
        equal to--
                    ``(A) $3,000, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins by substituting `calendar year 
                2004' for `calendar year 1992' in subparagraph (B) 
                thereof.
            ``(2) Rounding.--If any increase determined under paragraph 
        (1) is not a multiple of $10, such increase shall be rounded to 
        the next highest multiple of $10. In the case of a married 
        individual (as determined under section 7703) filing a separate 
        return, the preceding sentence shall be applied by substituting 
        `$5' for `$10' each place it appears.
    ``(e) Regulations.--The Secretary shall prescribe regulations to 
carry out this section, including regulations providing for claiming 
the credit under this section on Form 1040EZ.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 25B the following new 
item:

``Sec. 25C. Tuition and related expenses for public and nonpublic 
                            elementary and secondary education.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid in taxable years beginning after December 31, 
2004.
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