1.This Act may be cited as the Tax and
Education Assistance for Children (TEACH) Act of 2006
.
2.Credit for
qualified elementary and secondary education tuition
(a)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 25D the
following new section:
25E.Qualified
elementary and secondary education tuition
(a)There shall be allowed
as a credit against the tax imposed by this chapter for a taxable year an
amount equal to the qualified elementary and secondary education tuition paid
or incurred by the taxpayer during the taxable year.
(b)The amount allowed as a credit under subsection (a)
with respect to the taxpayer for any taxable year shall not exceed—
(1)$4,500 in the case
of a joint return,
(2)$4,500 in the case
of an individual who is not married, and
(3)$2,250 in the case
of a married individual filing a separate return.
(c)Qualified
elementary and secondary education tuition
(1)The term
qualified elementary and secondary education tuition means
expenses for tuition which are incurred in connection with the enrollment or
attendance of any dependent of the taxpayer with respect to whom the taxpayer
is allowed a deduction under section 151 as an elementary or secondary school
student at a private or religious school.
(2)The
term school means any school which provides elementary education
or secondary education (kindergarten through grade 12), as determined under
State
law.
.
(b)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 25D the following new item:
Sec. 25E. Qualified elementary and
secondary education
tuition.
.
(c)The amendments made by this section shall apply to taxable
years beginning after December 31, 2006.