I 

111TH CONGRESS 

2D SESSION H. R. 5060 

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

against income tax for tuition expenses incurred for each qualifying 

child of the taxpayer in attending public or private elementary or secondary school. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 15, 2010 

Mr. SMITH of New Jersey 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 

refundable credit against income tax for tuition expenses 

incurred for each qualifying child of the taxpayer in 

attending public or private elementary or secondary 

school. 

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 ‘‘Education, Achieve5 ment, and Opportunity Act’’. 

6 SEC. 2. FINDINGS. 

7 Congress finds the following: 


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1 (1) Private schools supplement the public school 

2 system and are a vital component of our Nation’s 

3 school network. 

4 (2) The public school system was created to 

5 serve students, not the other way around. Children 

6 should have the opportunity to attend the school sys7 tem that is most conducive to developing their abili8 ties, and parents have the right to choose the public 

9 or private school that best meets their child’s indi10 vidual needs. 

11 SEC. 3. CREDIT FOR ELEMENTARY AND SECONDARY EDU12 CATION EXPENSES. 

13 (a) IN GENERAL.—Subpart C of part IV of sub14 chapter A of chapter 1 of the Internal Revenue Code of 

15 1986 (relating to refundable credits) is amended by insert16 ing after section 36C the following new section: 

17 ‘‘SEC. 36D. ELEMENTARY AND SECONDARY EDUCATION EX18 PENSES. 

19 ‘‘(a) ALLOWANCE OF CREDIT.— 

20 ‘‘(1) IN GENERAL.—In the case of an indi21 vidual, there shall be allowed as a credit against the 

22 tax imposed by this subtitle for the taxable year the 

23 amount of the qualified education expenses paid by 

24 the taxpayer during the taxable year for each quali25 fying child of the taxpayer. 


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1 ‘‘(2) AMOUNT PER CHILD.—The amount of 

2 credit allowable under paragraph (1) for any taxable 

3 year with respect to the qualified education expenses 

4 of each qualifying child of the taxpayer shall not ex5 ceed— 

6 ‘‘(A) $2,500 for a child enrolled in an ele7 mentary school for any portion of the taxable 

8 year, and 

9 ‘‘(B) $3,500 for a child enrolled in a sec10 ondary school for any portion of the taxable 

11 year. 

12 In any taxable year in which a child meets the re13 quirements of both subparagraphs (A) and (B), the 

14 amount of credit allowable shall not exceed the sum 

15 of the amounts in such subparagraphs. 

16 ‘‘(b) LIMITATION BASED ON ADJUSTED GROSS IN17 COME.— 

18 ‘‘(1) IN GENERAL.—The amount of the credit 

19 allowable under subsection (a) (after the application 

20 of subsection (a)(2)) shall be reduced (but not below 

21 zero) by $50 for each $1,000 (or fraction thereof) by 

22 which the taxpayer’s modified adjusted gross income 

23 exceeds the threshold amount. 

24 ‘‘(2) DEFINITIONS AND SPECIAL RULES.—For 

25 purposes of this paragraph (1)— 


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1 ‘‘(A) THRESHOLD AMOUNT.—The term 

2 ‘threshold amount’ means— 

3 ‘‘(i) $150,000 in the case of a joint 

4 return, and 

5 ‘‘(ii) $75,000 in any other case. 

6 ‘‘(B) MODIFIED ADJUSTED GROSS IN7 COME.—The term ‘modified adjusted gross in8 come’ means adjusted gross income increased 

9 by any amount excluded from gross income 

10 under section 911, 931, or 933. 

11 ‘‘(C) MARITAL STATUS.—Marital status 

12 shall be determined under section 7703. 

13 ‘‘(c) DEFINITIONS.—For purposes of this section— 

14 ‘‘(1) QUALIFYING CHILD.—The term ‘qualifying 

15 child’ has the meaning provided by section 24(c). 

16 ‘‘(2) QUALIFIED EDUCATION EXPENSES.— 

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

18 education expenses’ means amounts paid for— 

19 ‘‘(i) tuition and fees required for the 

20 enrollment or attendance of a student at a 

21 qualified educational institution, 

22 ‘‘(ii) computers, educational software, 

23 computer support services, and books re24 quired for courses of instruction at a quali25 fied educational institution, 


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1 ‘‘(iii) academic tutoring (by a person 

2 other than the taxpayer), 

3 ‘‘(iv) special needs services for quali4 fying children with disabilities (within the 

5 meaning of the Americans With Disabil6 ities Act of 1990), 

7 ‘‘(v) fees for transportation services to 

8 and from a private school, if the transpor9 tation is provided by the school and the 

10 school charges a fee for the transportation, 

11 and 

12 ‘‘(vi) academic testing services. 

13 ‘‘(B) AMOUNTS EXCLUDED.—The term 

14 does not include special school fees for nonaca15 demic purposes, including fees for student ac16 tivities, athletics, insurance, school uniforms, 

17 and nonacademic after-school activities. 

18 ‘‘(3) QUALIFIED EDUCATIONAL INSTITUTION.— 

19 The term ‘qualified educational institution’ means— 

20 ‘‘(A) an elementary school or secondary 

21 school (as such terms are defined in section 

22 9101 of the Elementary and Secondary Edu23 cation Act of 1965 (20 U.S.C. 7801), or 


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1 ‘‘(B) any private, parochial, or religious 

2 school organized for the purpose of providing el3 ementary or secondary education, or both. 

4 ‘‘(d) ADJUSTMENT FOR COVERDELL SAVINGS AC5 COUNT DISTRIBUTIONS.—The amount of qualified edu6 cation expenses taken into account under subsection (a) 

7 with respect to an individual for a taxable year shall be 

8 reduced (before the application of subsection (b)) by the 

9 sum of any amounts not includible in gross income under 

10 section 530(d)(2) for such taxable year by reason of the 

11 qualified elementary and secondary education expenses (as 

12 defined in section 530(b)(3)) of such individual for such 

13 taxable year.’’. 

14 (b) TECHNICAL AMENDMENTS.— 

15 (1) Paragraph (2) of section 1324(b) of title 

16 31, United States Code, is amended by inserting 

17 ‘‘36D,’’ after ‘‘36C,’’. 

18 (2) The table of sections for subpart C of part 

19 IV of subchapter A of chapter 1 of the Internal Rev20 enue Code of 1986 is amended by striking the last 

21 item and inserting the following new items: 

‘‘Sec. 36D. Elementary and secondary education expenses.’’. 

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

23 this section shall apply to taxable years beginning after 

24 the date of the enactment of this Act. 

Æ 


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