I 

114TH CONGRESS 

1ST SESSION H. R. 1928 

To amend the Internal Revenue Code of 1986 to expand the coverage of 

qualified tuition programs and increase the limitation on contributions 

to Coverdell education savings accounts. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 22, 2015 

Mr. MCHENRY (for himself, Mr. MEADOWS, Mr. PITTENGER, Mr. HUDSON, 

and Mr. ROUZER) 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 expand 

the coverage of qualified tuition programs and increase 

the limitation on contributions to Coverdell education 

savings accounts. 

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 ‘‘Empowering Parents 

5 to Invest in Choice Act of 2015’’. 


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1 SEC. 2. QUALIFIED TUITION PROGRAMS EXTENDED TO 

2 COVER ELEMENTARY AND SECONDARY EDU3 CATION EXPENSES. 

4 (a) IN GENERAL.—Section 529(e)(3) of the Internal 

5 Revenue Code of 1986 is amended to read as follows: 

6 ‘‘(3) QUALIFIED EDUCATION EXPENSES.— 

7 ‘‘(A) IN GENERAL.—The term ‘qualified 

8 education expenses’ means— 

9 ‘‘(i) qualified elementary and sec10 ondary education expenses (as defined in 

11 subparagraph (B)), and 

12 ‘‘(ii) qualified higher education ex13 penses (as defined in subparagraph (C)). 

14 ‘‘(B) QUALIFIED ELEMENTARY AND SEC15 ONDARY EDUCATION EXPENSES.— 

16 ‘‘(i) IN GENERAL.—The term ‘quali17 fied elementary and secondary education 

18 expenses’ means— 

19 ‘‘(I) expenses for tuition, fees, 

20 academic tutoring, special needs serv21 ices in the case of a special needs ben22 eficiary, books, supplies, and other 

23 equipment which are incurred in con24 nection with the enrollment or attend25 ance of the designated beneficiary of 

26 the trust as an elementary or secVerDate Sep 11 2014 07:40 Apr 29, 2015 Jkt 049200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1928.IH H1928

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1 ondary school student at a public, pri2 vate, or religious school, 

3 ‘‘(II) expenses for the purchase 

4 of any computer technology or equip5 ment (as defined in section 

6 170(e)(6)(F)(i)) or Internet access 

7 and related services, if such tech8 nology, equipment, or services are to 

9 be used by the beneficiary and the 

10 beneficiary’s family during any of the 

11 years the beneficiary is in school. 

12 Subclause (III) shall not include expenses 

13 for computer software designed for sports, 

14 games, or hobbies unless the software is 

15 predominantly educational in nature. 

16 ‘‘(ii) SCHOOL.—The term ‘school’ 

17 means any school which provides elemen18 tary education or secondary education 

19 (kindergarten through grade 12), as deter20 mined under State law. 

21 ‘‘(C) QUALIFIED HIGHER EDUCATION EX22 PENSES.— 

23 ‘‘(i) IN GENERAL.—The term ‘quali24 fied higher education expenses’ means— 


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1 ‘‘(I) tuition, fees, books, supplies, 

2 and equipment required for the enroll3 ment or attendance of a designated 

4 beneficiary at an eligible educational 

5 institution, and 

6 ‘‘(II) expenses for special needs 

7 services in the case of a special needs 

8 beneficiary which are incurred in con9 nection with such enrollment or at10 tendance. 

11 ‘‘(ii) ROOM AND BOARD INCLUDED

12 FOR STUDENTS WHO ARE AT LEAST HALF13 TIME.—In the case of an individual who is 

14 an eligible student (as defined in section 

15 25A(b)(3)) for any academic period, such 

16 term shall also include reasonable costs for 

17 such period (as determined under the 

18 qualified tuition program) incurred by the 

19 designated beneficiary for room and board 

20 while attending such institution. For pur21 poses of subsection (b)(6), a designated 

22 beneficiary shall be treated as meeting the 

23 requirements of this clause. 

24 ‘‘(iii) LIMITATION ON ROOM AND

25 BOARD INCLUDED FOR STUDENTS WHO


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1 ARE AT LEAST HALF-TIME.—The amount 

2 treated as qualified higher education ex3 penses by reason of clause (ii) shall not ex4 ceed— 

5 ‘‘(I) the allowance (applicable to 

6 the student) for room and board in7 cluded in the cost of attendance (as 

8 defined in section 472 of the Higher 

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

10 1087ll), as in effect on the date of the 

11 enactment of the Economic Growth 

12 and Tax Relief Reconciliation Act of 

13 2001) as determined by the eligible 

14 educational institution for such pe15 riod, or 

16 ‘‘(II) if greater, the actual invoice 

17 amount the student residing in hous18 ing owned or operated by the eligible 

19 educational institution is charged by 

20 such institution for room and board 

21 costs for such period.’’. 

22 (b) CONFORMING AMENDMENTS.— 

23 (1) Section 72(t)(7)(A) of such Code is amend24 ed by striking ‘‘529(e)(3)’’ and inserting 

25 ‘‘529(e)(3)(C)’’. 


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1 (2) Section 529(c)(3)(B) of such Code is 

2 amended by striking ‘‘QUALIFIED HIGHER EDU3 CATION EXPENSES’’ in the heading thereof and in4 serting ‘‘QUALIFIED EDUCATION EXPENSES’’. 

5 (3) Section 529(c)(3)(B)(i) of such Code is 

6 amended by striking ‘‘qualified higher education ex7 pense’’ and inserting ‘‘qualified education expense’’. 

8 (4) Section 529 of such Code is amended by 

9 striking ‘‘qualified higher education expenses’’ each 

10 place it appears and inserting ‘‘qualified education 

11 expenses’’ in each of the following: 

12 (A) Subsection (b)(1)(A)(i). 

13 (B) Subsection (b)(1)(A)(ii). 

14 (C) Subsection (b)(6). 

15 (D) Subsection (c)(3)(B)(ii)(I). 

16 (E) Subsection (c)(3)(B)(v). 

17 (F) Subsection (c)(3)(B)(vi)(II). 

18 (G) Subsection (c)(6). 

19 (5) Section 530(b) of such Code is amended by 

20 striking paragraphs (2) and (3) and redesignating 

21 paragraph (4) as paragraph (2). 

22 (6) Section 1400O(1) of such Code is amended 

23 by striking ‘‘529(e)(3)’’ and inserting 

24 ‘‘529(e)(3)(C)’’. 


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1 (c) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2014. 

4 SEC. 3. INCREASED LIMITATION ON CONTRIBUTIONS TO 

5 COVERDELL EDUCATION SAVINGS AC6 COUNTS. 

7 (a) IN GENERAL.—Section 530(b)(1)(A)(iii) of the 

8 Internal Revenue Code of 1986 is amended by striking 

9 ‘‘$2,000’’ and inserting ‘‘$15,000’’. 

10 (b) INFLATION ADJUSTMENT.—Section 530 of such 

11 Code is amended by adding at the end the following new 

12 subsection: 

13 ‘‘(i) INFLATION ADJUSTMENT.— 

14 ‘‘(1) IN GENERAL.—In the case of any taxable 

15 year beginning after 2015, the $15,000 amount con16 tained in subsection (b)(1)(A)(iii) shall be increased 

17 by an amount equal to— 

18 ‘‘(A) such dollar amount, multiplied by 

19 ‘‘(B) the cost-of-living adjustment deter20 mined under section 1(f)(3) for the calendar 

21 year in which the taxable year begins, deter22 mined by substituting ‘calendar year 2014’ for 

23 ‘calender year 1992’ in subparagraph (B) there24 of. 


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1 ‘‘(2) ROUNDING RULE.—Any increase deter2 mined under the preceding sentence shall be rounded 

3 to the nearest multiple of $100.’’. 

4 (c) EFFECTIVE DATE.—The amendments made by 

5 this section shall apply to taxable years beginning after 

6 December 31, 2014. 

Æ 


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