Empowering Parents to Invest in Choice Act of 2015

Summary: Empowering Parents to Invest in Choice Act of 2015 This bill amends the Internal Revenue Code to allow the payment of qualified elementary and secondary education expenses from a tax-exempt qualified tuition program (known as a 529 plan). (Currently, such plans only pay qualified higher education expenses.) Included as qualified elementary and secondary education expenses are expenses for tuition, fees, academic tutoring, special needs services, books, supplies, and computer technology or equipment. The bill also increases from $2,000 to $15,000 the limit on the amount that may be contributed to a tax-exempt Coverdell education savings account. The new contribution limit is adjusted for inflation in each taxable year beginning after 2015.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Empowering Parents to Invest in 
Choice Act of 2015''.

SEC. 2. QUALIFIED TUITION PROGRAMS EXTENDED TO COVER ELEMENTARY AND 
              SECONDARY EDUCATION EXPENSES.

    (a) In General.--Section 529(e)(3) of the Internal Revenue Code of 
1986 is amended to read as follows:
            ``(3) Qualified education expenses.--
                    ``(A) In general.--The term `qualified education 
                expenses' means--
                            ``(i) qualified elementary and secondary 
                        education expenses (as defined in subparagraph 
                        (B)), and
                            ``(ii) qualified higher education expenses 
                        (as defined in subparagraph (C)).
                    ``(B) Qualified elementary and secondary education 
                expenses.--
                            ``(i) In general.--The term `qualified 
                        elementary and secondary education expenses' 
                        means--
                                    ``(I) expenses for tuition, fees, 
                                academic tutoring, special needs 
                                services in the case of a special needs 
                                beneficiary, books, supplies, and other 
                                equipment which are incurred in 
                                connection with the enrollment or 
                                attendance of the designated 
                                beneficiary of the trust as an 
                                elementary or secondary school student 
                                at a public, private, or religious 
                                school,
                                    ``(II) expenses for the purchase of 
                                any computer technology or equipment 
                                (as defined in section 170(e)(6)(F)(i)) 
                                or Internet access and related 
                                services, if such technology, 
                                equipment, or services are to be used 
                                by the beneficiary and the 
                                beneficiary's family during any of the 
                                years the beneficiary is in school.
                        Subclause (III) shall not include expenses for 
                        computer software designed for sports, games, 
                        or hobbies unless the software is predominantly 
                        educational in nature.
                            ``(ii) School.--The term `school' means any 
                        school which provides elementary education or 
                        secondary education (kindergarten through grade 
                        12), as determined under State law.
                    ``(C) Qualified higher education expenses.--
                            ``(i) In general.--The term `qualified 
                        higher education expenses' means--
                                    ``(I) tuition, fees, books, 
                                supplies, and equipment required for 
                                the enrollment or attendance of a 
                                designated beneficiary at an eligible 
                                educational institution, and
                                    ``(II) expenses for special needs 
                                services in the case of a special needs 
                                beneficiary which are incurred in 
                                connection with such enrollment or 
                                attendance.
                            ``(ii) Room and board included for students 
                        who are at least half-time.--In the case of an 
                        individual who is an eligible student (as 
                        defined in section 25A(b)(3)) for any academic 
                        period, such term shall also include reasonable 
                        costs for such period (as determined under the 
                        qualified tuition program) incurred by the 
                        designated beneficiary for room and board while 
                        attending such institution. For purposes of 
                        subsection (b)(6), a designated beneficiary 
                        shall be treated as meeting the requirements of 
                        this clause.
                            ``(iii) Limitation on room and board 
                        included for students who are at least half-
                        time.--The amount treated as qualified higher 
                        education expenses by reason of clause (ii) 
                        shall not exceed--
                                    ``(I) the allowance (applicable to 
                                the student) for room and board 
                                included in the cost of attendance (as 
                                defined in section 472 of the Higher 
                                Education Act of 1965 (20 U.S.C. 
                                1087ll), as in effect on the date of 
                                the enactment of the Economic Growth 
                                and Tax Relief Reconciliation Act of 
                                2001) as determined by the eligible 
                                educational institution for such 
                                period, or
                                    ``(II) if greater, the actual 
                                invoice amount the student residing in 
                                housing owned or operated by the 
                                eligible educational institution is 
                                charged by such institution for room 
                                and board costs for such period.''.
    (b) Conforming Amendments.--
            (1) Section 72(t)(7)(A) of such Code is amended by striking 
        ``529(e)(3)'' and inserting ``529(e)(3)(C)''.
            (2) Section 529(c)(3)(B) of such Code is amended by 
        striking ``qualified higher education expenses'' in the heading 
        thereof and inserting ``qualified education expenses''.
            (3) Section 529(c)(3)(B)(i) of such Code is amended by 
        striking ``qualified higher education expense'' and inserting 
        ``qualified education expense''.
            (4) Section 529 of such Code is amended by striking 
        ``qualified higher education expenses'' each place it appears 
        and inserting ``qualified education expenses'' in each of the 
        following:
                    (A) Subsection (b)(1)(A)(i).
                    (B) Subsection (b)(1)(A)(ii).
                    (C) Subsection (b)(6).
                    (D) Subsection (c)(3)(B)(ii)(I).
                    (E) Subsection (c)(3)(B)(v).
                    (F) Subsection (c)(3)(B)(vi)(II).
                    (G) Subsection (c)(6).
            (5) Section 530(b) of such Code is amended by striking 
        paragraphs (2) and (3) and redesignating paragraph (4) as 
        paragraph (2).
            (6) Section 1400O(1) of such Code is amended by striking 
        ``529(e)(3)'' and inserting ``529(e)(3)(C)''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.

SEC. 3. INCREASED LIMITATION ON CONTRIBUTIONS TO COVERDELL EDUCATION 
              SAVINGS ACCOUNTS.

    (a) In General.--Section 530(b)(1)(A)(iii) of the Internal Revenue 
Code of 1986 is amended by striking ``$2,000'' and inserting 
``$15,000''.
    (b) Inflation Adjustment.--Section 530 of such Code is amended by 
adding at the end the following new subsection:
    ``(i) Inflation Adjustment.--
            ``(1) In general.--In the case of any taxable year 
        beginning after 2015, the $15,000 amount contained in 
        subsection (b)(1)(A)(iii) shall be increased by an amount equal 
        to--
                    ``(A) such dollar amount, multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year in which 
                the taxable year begins, determined by substituting 
                `calendar year 2014' for `calender year 1992' in 
                subparagraph (B) thereof.
            ``(2) Rounding rule.--Any increase determined under the 
        preceding sentence shall be rounded to the nearest multiple of 
        $100.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2014.