I 

113TH CONGRESS 

2D SESSION H. R. 3977 

To amend the Internal Revenue Code of 1986 to allow 529 tuition programs 

with respect to elementary and secondary education expenses. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 29, 2014 

Mr. SALMON 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 529 

tuition programs with respect to elementary and secondary education expenses. 

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 ‘‘School Choice Edu5 cation Savings Account Act of 2014’’. 

6 SEC. 2. 529 PROGRAMS FOR ELEMENTARY AND SECONDARY 

7 EDUCATION EXPENSES. 

8 (a) IN GENERAL.—Paragraph (3) of section 529(e) 

9 of the Internal Revenue Code of 1986 is amended— 


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1 (1) by redesignating subparagraph (B) as sub2 paragraph (C), 

3 (2) by striking ‘‘QUALIFIED HIGHER EDU4 CATION EXPENSES’’ and all that follows through 

5 ‘‘The term ‘qualified higher education expenses’ 

6 means—’’ and inserting the following: ‘‘QUALIFIED

7 EDUCATION EXPENSES.— 

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

9 education expenses’ means— 

10 ‘‘(i) qualified higher education ex11 penses, and 

12 ‘‘(ii) qualified elementary and sec13 ondary education expenses. 

14 ‘‘(B) QUALIFIED HIGHER EDUCATION EX15 PENSES.—The term ‘qualified higher education 

16 expenses’ means’’, and 

17 (3) by adding at the end the following new sub18 paragraphs: 

19 ‘‘(D) QUALIFIED ELEMENTARY AND SEC20 ONDARY EDUCATION EXPENSES.— 

21 ‘‘(i) expenses for tuition, fees, aca22 demic tutoring, special needs services in 

23 the case of a special needs beneficiary, 

24 books, supplies, and other equipment which 

25 are incurred in connection with the enrollVerDate Mar 15 2010 03:58 Feb 01, 2014 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H3977.IH H3977

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1 ment or attendance of the designated bene2 ficiary of the trust as an elementary or 

3 secondary school student at a public, pri4 vate, or religious school, 

5 ‘‘(ii) expenses for room and board, 

6 uniforms, transportation, and supple7 mentary items and services (including ex8 tended day programs) which are required 

9 or provided by a public, private, or reli10 gious school in connection with such enroll11 ment or attendance, and 

12 ‘‘(iii) expenses for the purchase of any 

13 computer technology or equipment (as de14 fined in section 170(e)(6)(F)(i)) or Inter15 net access and related services, if such 

16 technology, equipment, or services are to 

17 be used by the beneficiary and the bene18 ficiary’s family during any of the years the 

19 beneficiary is in school. 

20 Clause (iii) shall not include expenses for com21 puter software designed for sports, games, or 

22 hobbies unless the software is predominantly 

23 educational in nature. 

24 ‘‘(E) SCHOOL.—The term ‘school’ means 

25 any school which provides elementary education 


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1 or secondary education (kindergarten through 

2 grade 12), as determined under State law. Such 

3 a school shall be treated as an eligible edu4 cational institution for purposes of subsection 

5 (b).’’. 

6 (b) CONFORMING AMENDMENTS.—Section 529 of 

7 such Code is amended by striking ‘‘qualified higher edu8 cation’’ each place it appears in subsections (b) and (c) 

9 and inserting ‘‘qualified education’’. 

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

11 this section shall apply to taxable years beginning after 

12 December 31, 2014. 

Æ 


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