II 112th CONGRESS 1st Session S. 141 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.

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.

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.

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. .