[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 141 Introduced in Senate (IS)]

112th CONGRESS
  1st Session
                                 S. 141

  To amend the Internal Revenue Code of 1986 to expand the Coverdell 
education savings accounts to allow home school education expenses, and 
                          for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

             January 25 (legislative day, January 5), 2011

  Mr. Vitter introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
  To amend the Internal Revenue Code of 1986 to expand the Coverdell 
education savings accounts to allow home school education expenses, 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. ALLOWANCE OF HOME SCHOOL EXPENSES AS QUALIFIED EDUCATION 
              EXPENSES FOR PURPOSES OF A COVERDELL EDUCATION SAVINGS 
              ACCOUNT.

    (a) In General.--Paragraph (3) of section 530(b) of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
subparagraph:
                    ``(C) Private school.--For purposes of this 
                section, the term `private school' includes any home 
                school that meets the requirements of State law 
                applicable to such home schools, whether or not such 
                school is deemed a private school for purposes of State 
                law.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2010.

SEC. 2. COVERDELL EDUCATION SAVINGS ACCOUNT CONTRIBUTIONS INDEXED TO 
              INFLATION.

    (a) In General.--Subsection (b) of section 530 of the Internal 
Revenue Code of 1986 is amended by adding at the end the following new 
paragraph:
            ``(5) Adjustment for inflation.--In the case of a taxable 
        year beginning in a calendar year after 2010, the dollar amount 
        in paragraph (1)(A)(iii) shall be increased by an amount equal 
        to--
                    ``(A) such amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for such calendar year by 
                substituting `calendar year 2009' for `calendar year 
                1992' in subparagraph (B) thereof.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2010.

SEC. 3. EXPANSION OF EDUCATION SAVINGS INCENTIVES MADE PERMANENT.

    Section 901 of the Economic Growth and Tax Relief Reconciliation 
Act of 2001 is amended by adding at the end the following new 
subsection:
    ``(c) Exception.--Subsection (a) shall not apply to the amendments 
made by section 401.''.
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