H.R.3685 - Education, Achievement, and Opportunity Act107th Congress (2001-2002)
|Sponsor:||Rep. Smith, Christopher H. [R-NJ-4] (Introduced 02/05/2002)|
|Committees:||House - Ways and Means|
|Latest Action:||House - 02/05/2002 Referred to the House Committee on Ways and Means. (All Actions)|
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Text: H.R.3685 — 107th Congress (2001-2002)All Information (Except Text)
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Introduced in House (02/05/2002)
[Congressional Bills 107th Congress] [From the U.S. Government Printing Office] [H.R. 3685 Introduced in House (IH)] 107th CONGRESS 2d Session H. R. 3685 To amend the Internal Revenue Code of 1986 to allow a refundable credit against income tax for educational expenses incurred for each qualifying child of the taxpayer in attending public or private elementary or secondary school. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES February 5, 2002 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 educational 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. 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 35 as section 36 and by inserting after section 34 the following new section: ``SEC. 35. 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.--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. For purposes of this subsection-- ``(1) Threshold amount.--The term `threshold amount' means-- ``(A) $150,000 in the case of a joint return, and ``(B) $75,000 in any other case. ``(2) 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. ``(3) Marital status.--Marital status shall be determined under section 7703. ``(c) Special Rule Related to Home Schooling.--In the case of education furnished to a child in a home, the credit under subsection (a) is allowable for a taxable year only if the child takes any applicable student achievement exam that all children enrolled in the nearest public school would ordinarily be required to take during the academic year beginning during the taxable year. ``(d) 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, religious, or home school organized for the purpose of providing elementary or secondary education, or both.''. (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 such Code is amended by striking the last item and inserting the following new items: ``Sec. 35. Elementary and secondary education expenses. ``Sec. 36. 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. <all>