[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 441 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 441

To amend the Internal Revenue Code of 1986 to allow a refundable credit 
 against income tax for tuition expenses incurred for each qualifying 
  child of the taxpayer in attending public or private elementary or 
                           secondary school.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 1, 2005

   Mr. Smith of New Jersey 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 
 against income tax for tuition expenses incurred for each qualifying 
  child of the taxpayer in attending public or private elementary or 
                           secondary school.

    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 ``Education, Achievement, and 
Opportunity Act''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) Private schools supplement the public school system and 
        are a vital component of our Nation's school network.
            (2) The public school system was created to serve students, 
        not the other way around. Children should have the opportunity 
        to attend the school system that is most conducive to 
        developing their abilities, and parents have the right to 
        choose the public or private school that best meets their 
        child's individual needs.

SEC. 3. CREDIT FOR ELEMENTARY AND SECONDARY 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 36 as section 37 and by inserting 
after section 35 the following new section:

``SEC. 36. ELEMENTARY AND SECONDARY EDUCATION EXPENSES.

    ``(a) Allowance of Credit.--
            ``(1) In general.--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 each qualifying child of the taxpayer.
            ``(2) Amount per child.--The amount of credit allowable 
        under paragraph (1) for any taxable year with respect to the 
        qualified education expenses of each qualifying child of the 
        taxpayer shall not exceed--
                    ``(A) $2,500 for a child enrolled in an elementary 
                school for any portion of the taxable year, and
                    ``(B) $3,500 for a child enrolled in a secondary 
                school for any portion of the taxable year.
        In any taxable year in which a child meets the requirements of 
        both subparagraphs (A) and (B), the amount of credit allowable 
        shall not exceed the sum of the amounts in such subparagraphs.
    ``(b) Limitation Based on Adjusted Gross Income.--
            ``(1) In general.--The amount of the credit allowable under 
        subsection (a) (after the application of subsection (a)(2)) 
        shall be reduced (but not below zero) by $50 for each $1,000 
        (or fraction thereof) by which the taxpayer's modified adjusted 
        gross income exceeds the threshold amount.
            ``(2) Definitions and special rules.--For purposes of this 
        paragraph (1)--
                    ``(A) Threshold amount.--The term `threshold 
                amount' means--
                            ``(i) $150,000 in the case of a joint 
                        return, and
                            ``(ii) $75,000 in any other case.
                    ``(B) Modified adjusted gross income.--The term 
                `modified adjusted gross income' means adjusted gross 
                income increased by any amount excluded from gross 
                income under section 911, 931, or 933.
                    ``(C) Marital status.--Marital status shall be 
                determined under section 7703.
    ``(c) Definitions.--For purposes of this section--
            ``(1) Qualifying child.--The term `qualifying child' has 
        the meaning provided by section 24(c).
            ``(2) 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 a 
                        qualified educational institution,
                            ``(ii) computers, educational software, 
                        computer support services, and books required 
                        for courses of instruction at a qualified 
                        educational institution,
                            ``(iii) academic tutoring (by a person 
                        other than the taxpayer),
                            ``(iv) special needs services for 
                        qualifying children with disabilities (within 
                        the meaning of the Americans With Disabilities 
                        Act of 1990),
                            ``(v) fees for transportation services to 
                        and from a private school, if the 
                        transportation is provided by the school and 
                        the school charges a fee for the 
                        transportation, and
                            ``(vi) academic testing services.
                    ``(B) Amounts excluded.--The term does not include 
                special school fees for nonacademic purposes, including 
                fees for student activities, athletics, insurance, 
                school uniforms, and nonacademic after-school 
                activities.
            ``(3) Qualified educational institution.--The term 
        `qualified educational institution' means--
                    ``(A) an elementary or secondary school (as defined 
                in section 14101 of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 8801)), or
                    ``(B) any private, parochial, or religious school 
                organized for the purpose of providing elementary or 
                secondary education, or both.
    ``(d) Adjustment for Coverdell Savings Account Distributions.--The 
amount of qualified education expenses taken into account under 
subsection (a) with respect to an individual for a taxable year shall 
be reduced (before the application of subsection (b)) by the sum of any 
amounts not includible in gross income under section 530(d)(2)(B) for 
such taxable year by reason of the qualified elementary and secondary 
education expenses (as defined in section 530(b)(4)) of such individual 
for such taxable year.''.
    (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 Education, 
        Achievement, and Opportunity Act''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by striking the last item and inserting the 
        following new items:

``Sec. 36. Elementary and secondary education expenses.
``Sec. 37. 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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