I 

114TH CONGRESS 

1ST SESSION H. R. 1801 

To amend the Internal Revenue Code of 1986 to allow a tax credit for 

providing programs to kindergarten, elementary, and secondary students 

that promote economic and financial literacy. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 15, 2015 

Ms. KELLY of Illinois 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 

tax credit for providing programs to kindergarten, elementary, and secondary students that promote economic 

and financial literacy. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Promoting Financial 

5 Literacy and Economic Opportunity Act of 2015’’. 


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1 SEC. 2. TAX CREDIT FOR PROVIDING PROGRAMS FOR STU2 DENTS THAT PROMOTE ECONOMIC AND FI3 NANCIAL LITERACY. 

4 (a) IN GENERAL.—Subpart D of part IV of sub5 chapter A of chapter 1 of the Internal Revenue Code of 

6 1986 (relating to business-related credits) is amended by 

7 adding at the end the following new section: 

8 ‘‘SEC. 45S. EXCELLENCE IN ECONOMIC EDUCATION. 

9 ‘‘(a) GENERAL RULE.—In the case of an eligible for 

10 profit organization, for purposes of section 38, the excel11 lence in economic education credit determined under this 

12 section for a taxable year is 50 percent of the amount paid 

13 or incurred during the taxable year to carry out the pur14 poses specified in section 5533(b) of the Elementary and 

15 Secondary Education Act of 1965 (20 U.S.C. 7267b(b)) 

16 pursuant to a qualified program. 

17 ‘‘(b) LIMITATION ON NUMBER OF CREDIT RECIPI18 ENTS.— 

19 ‘‘(1) IN GENERAL.—The excellence in economic 

20 education credit determined under this section for a 

21 taxable year may be allowed to not more than 20 for 

22 profit organizations in accordance with paragraph 

23 (2). 

24 ‘‘(2) CREDIT AWARD BY SECRETARY.— 

25 ‘‘(A) IN GENERAL.—The Secretary (in con26 sultation with the Secretary of Education) shall 


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1 determine which for profit organizations are al2 lowed the credit under this section for a taxable 

3 year in such manner as the Secretary deter4 mines appropriate. 

5 ‘‘(B) MAJORITY OF RECIPIENTS MUST BE

6 MWOSBS, OWNED BY VETERANS, OR MEET

7 ASSET TEST.—In carrying out subparagraph 

8 (A), the majority of the taxpayers allowed a 

9 credit under paragraph (1) for a taxable year 

10 shall be entities that are— 

11 ‘‘(i) either— 

12 ‘‘(I) a socially and economically 

13 disadvantaged small business concern 

14 (as defined in section 8(a)(4)(A) of 

15 the Small Business Act (15 U.S.C. 

16 637(a)(4)(A))), 

17 ‘‘(II) a small business concern 

18 owned and controlled by women (as 

19 defined under section 3(n) of such Act 

20 (15 U.S.C. 632(n))), or 

21 ‘‘(III) a small business concern 

22 (as so defined) that is at least 51 per23 cent owned by veterans (as defined in 

24 section 101(2), United States Code), 

25 or 


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1 ‘‘(ii) on the first day of the taxable 

2 year do not have more than 

3 $60,000,000,000 in assets. 

4 ‘‘(C) PRIORITY.—In making determina5 tions under this paragraph, the Secretary shall 

6 give priority to taxpayers that have qualified 

7 programs which serve either urban or rural un8 derserved areas (determined on the basis of the 

9 most recent United States census data avail10 able). 

11 ‘‘(c) LIMITATIONS RELATING TO EXPENDITURES.— 

12 ‘‘(1) DIRECT ACTIVITY.—25 percent of the 

13 amount allowed as a credit under subsection (a) 

14 shall be for amounts paid or incurred for direct ac15 tivities (as defined in section 5533(b)(1) of the Ele16 mentary and Secondary Education Act of 1965 (20 

17 U.S.C. 7267b(b)(1))). 

18 ‘‘(2) SUBGRANTS.—75 percent of the amount 

19 allowed as a credit under subsection (a) shall be for 

20 amounts paid or incurred for subgrants (as defined 

21 in section 5533(b)(2) of the Elementary and Sec22 ondary Education Act of 1965 (20 U.S.C. 

23 7267b(b)(1))), determined by treating amounts so 

24 paid or incurred as funds made available through a 

25 grant. 


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1 ‘‘(d) DEFINITIONS AND SPECIAL RULES.—For pur2 poses of this section— 

3 ‘‘(1) QUALIFIED PROGRAM.—The term ‘quali4 fied program’ means a program in writing under 

5 which an eligible for profit organization awards one 

6 or more grants for the purpose of carrying out the 

7 objectives of promoting economic and financial lit8 eracy, as specified in section 5532 of the Elementary 

9 and Secondary Education Act of 1965 (20 U.S.C. 

10 7267a), that meet the requirements of section 5533b 

11 of the Elementary and Secondary Education Act of 

12 1965 (20 U.S.C. 7267b). 

13 ‘‘(2) ELIGIBLE FOR PROFIT ORGANIZATION.— 

14 The term ‘eligible for profit organization’ means 

15 with respect to a taxable year, an organization 

16 that— 

17 ‘‘(A) has a qualified program in effect for 

18 the taxable year, and 

19 ‘‘(B) has been determined by the Secretary 

20 under subsection (b)(2) to be an organization to 

21 whom the credit is allowed for the taxable year. 

22 ‘‘(3) DETERMINATION OF ASSETS.—For pur23 poses of paragraph (2)(B), in determining assets, 

24 the Secretary shall use the same method used by the 

25 Board of Governors of the Federal Reserve System 


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1 to determine a bank holding company’s consolidated 

2 assets under section 165 of the Financial Stability 

3 Act of 2010 (12 U.S.C. 5365). 

4 ‘‘(4) ELECTION NOT TO CLAIM CREDIT.—This 

5 section shall not apply to a taxpayer for any taxable 

6 year if such taxpayer elects to have this section not 

7 apply for such taxable year. 

8 ‘‘(5) COORDINATION WITH OTHER DEDUCTIONS

9 OR CREDITS.—The amount of any deduction or cred10 it otherwise allowable under this chapter for any 

11 amount taken into account for purposes of sub12 section (a) shall be reduced by the credit allowed by 

13 this section. 

14 ‘‘(e) REGULATIONS.—The Secretary shall issue such 

15 regulations or other guidance as may be necessary or ap16 propriate to carry out this section.’’. 

17 (b) CREDIT MADE PART OF GENERAL BUSINESS

18 CREDIT.—Subsection (b) of section 38 of the Internal 

19 Revenue Code of 1986 is amended by striking ‘‘plus’’ at 

20 the end of paragraph (35), by striking the period at the 

21 end of paragraph (36) and inserting ‘‘, plus’’, and by add22 ing at the end the following new paragraph: 

23 ‘‘(37) the excellence in economic education cred24 it determined under section 45S(a).’’. 


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1 (c) CLERICAL AMENDMENT.—The table of sections 

2 for subpart D of part IV of subchapter A of chapter 1 

3 of the Internal Revenue Code of 1986 is amended by add4 ing at the end the following new item: 

‘‘Sec. 45S. Excellence in economic education.’’. 

5 (d) EFFECTIVE DATE.—The amendments made by 

6 this section shall apply to taxable years beginning after 

7 the date of the enactment of this Act. 

Æ 


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