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[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. 2287 Introduced in Senate (IS)]

112th CONGRESS
  2d Session
                                S. 2287

 To amend the Internal Revenue Code of 1986 to allow a credit against 
  income tax for contributions to a trust used to provide need-based 
                         college scholarships.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                             April 17, 2012

   Mr. Coons 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 allow a credit against 
  income tax for contributions to a trust used to provide need-based 
                         college scholarships.

    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 ``Communities Committed to College Tax 
Credit Act of 2012''.

SEC. 2. CREDIT FOR CONTRIBUTIONS TO A TRUST USED TO PROVIDE NEED-BASED 
              COLLEGE SCHOLARSHIPS.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to other credits) is 
amended by adding at the end the following new section:

``SEC. 30E. CONTRIBUTIONS TO TRUST USED TO PROVIDE NEED-BASED COLLEGE 
              SCHOLARSHIPS.

    ``(a) Allowance of Credit.--In addition to any deduction allowable 
under this title, there shall be allowed as a credit against the tax 
imposed by this chapter for the taxable year an amount equal to 50 
percent of designated qualified college scholarship funding 
contributions made by the taxpayer during the taxable year.
    ``(b) Designated Qualified College Scholarship Funding 
Contribution.--For purposes of this section--
            ``(1) In general.--The term `designated qualified college 
        scholarship funding contribution' means any charitable 
        contribution (as defined in section 170(c))--
                    ``(A) which is paid in cash by the taxpayer to a 
                qualified scholarship funding trust, and
                    ``(B) which is designated by the trust for purposes 
                of this section.
            ``(2) Qualified scholarship funding trust.--The term 
        `qualified scholarship funding trust' means a trust--
                    ``(A) which is established and maintained in the 
                United States by an organization--
                            ``(i) described in section 501(c)(3) and 
                        exempt from tax under section 501(a), and
                            ``(ii) organized primarily for educational 
                        purposes,
                    ``(B) which is part of a plan of one or more local 
                education agencies (as defined in section 9101 of the 
                Elementary and Secondary Education Act of 1965) of the 
                State in which such trust is established and maintained 
                to provide scholarships to children of such agencies, 
                and
                    ``(C) the written governing instrument of which--
                            ``(i) requires that the income of the trust 
                        be used exclusively to provide qualified 
                        scholarships (as defined in section 117(b)) to 
                        individuals who--
                                    ``(I) are candidates for a degree 
                                at an institution of higher education 
                                (within the meaning given such term by 
                                section 101 of the Higher Education Act 
                                of 1965 (20 U.S.C. 1001)), and
                                    ``(II) have demonstrated financial 
                                need in accordance with section 471 of 
                                such Act (20 U.S.C. 1087kk), and
                            ``(ii) requires that the assets of the 
                        trust not be distributed for any purpose.
    ``(c) Limitations.--
            ``(1) In general.--There is a national qualified college 
        scholarship funding contribution limitation of $1,000,000,000.
            ``(2) Allocation of limitation.--
                    ``(A) In general.--Such national limitation shall 
                be allocated by the Secretary among the qualified 
                scholarship funding trusts which have registered with 
                the Secretary on or before the 180th day after the date 
                of the enactment of this section. Each trust's share of 
                such national limitation shall be the amount which 
                bears the same ratio to such limitation as the number 
                of school age children of such trust's sponsoring 
                agencies bears to the aggregate number of school age 
                children of the sponsoring agencies of all trusts which 
                have so registered with the Secretary.
                    ``(B) School age children of sponsoring agencies.--
                For purposes of subparagraph (A), the number of school 
                age children of a trust's sponsoring agencies is the 
                number of children of the local education agencies 
                referred to in subsection (b)(2)(B) who have attained 
                age 5 but not age 18 for the most recent fiscal year 
                ending before the date the allocations under this 
                paragraph are made.
            ``(3) Designation subject to allocated limitation amount.--
        The amount of contributions made to a qualified scholarship 
        funding trust which may be designated by such trust for 
        purposes of this section shall not exceed the limitation amount 
        allocated to such trust under paragraph (2).
            ``(4) Maximum allocation per trust.--The maximum qualified 
        college scholarship funding contribution limitation which may 
        be allocated to each trust is $200,000,000. An amount which may 
        not be allocated to a trust by reason of the preceding sentence 
        shall be allocated as provided in paragraph (2) among 
        registered qualified scholarship funding trusts whose allocated 
        limitation (without regard to this sentence) does not exceed 
        $200,000,000.
    ``(d) Application With Other Credits.--
            ``(1) Business credit treated as part of general business 
        credit.--So much of the credit which would be allowed under 
        subsection (a) for any taxable year (determined without regard 
        to this subsection) to a taxpayer engaged in a trade or 
        business shall be treated as a credit listed in section 38(b) 
        for such taxable year (and not allowed under subsection (a)).
            ``(2) Personal credit.--
                    ``(A) In general.--For purposes of this title, the 
                credit allowed under subsection (a) for any taxable 
                year (determined after application of paragraph (1)) 
                shall be treated as a credit allowable under subpart A 
                for such taxable year.
                    ``(B) Limitation based on amount of tax.--In the 
                case of a taxable year to which section 26(a)(2) does 
                not apply, the credit allowed under subsection (a) for 
                any taxable year (determined after application of 
                paragraph (1)) shall not exceed the excess of--
                            ``(i) the sum of the regular tax liability 
                        (as defined in section 26(b)) plus the tax 
                        imposed by section 55, over
                            ``(ii) the sum of the credits allowable 
                        under subpart A (other than this section and 
                        sections 23 and 25D) and section 27 for the 
                        taxable year.
    ``(e) Application of Section.--This section shall apply only to 
contributions made during the 3-year period beginning on the 180th day 
after the date of the enactment of this section.''.
    (b) Conforming Amendments.--
            (1) Sections 24(b)(3)(B), 25A(i)(5)(B), 25B(g)(2), 
        26(a)(1), 30(c)(2)(B)(ii), 30B(g)(2)(B)(ii), 904(i), and 
        1400C(d)(2) of such Code are each amended by striking ``and 
        30D'' and inserting ``30D, and 30E''.
            (2) Section 25(e)(1)(C)(ii) of such Code is amended by 
        inserting ``30E,'' after ``30D,''.
            (3) Section 30D(c)(2)(B)(ii) of such Code is amended by 
        striking ``and 25D'' and inserting ``, 25D, and 30E''.
            (4) Section 38(b) of such Code is amended by striking 
        ``plus'' at the end of paragraph (35), by striking the period 
        at the end of paragraph (36) and inserting ``, plus'', and by 
        adding at the end the following new paragraph:
            ``(37) the portion of the credit to which section 30E(d)(1) 
        applies.''.
            (5) The table of sections for subpart B of part IV of 
        subchapter A of chapter 1 of such Code is amended by adding at 
        the end the following new item:

``Sec. 30E. Contributions to trust used to provide need-based college 
                            scholarships.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to contributions made on or after the 180th day after the date of 
the enactment of this Act in taxable years ending after such date.
                                 <all>
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