I

107TH CONGRESS

1ST SESSION H. R. 1681

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

income tax for contributions for scholarships to attend elementary and

secondary schools, for upgrading elementary and secondary school facilities, and for expenses related to technology for elementary and secondary

schools.

IN THE HOUSE OF REPRESENTATIVES

MAY 2, 2001

Mr. HOEKSTRA (for himself, Mr. SCHAFFER, and Mr. CANTOR) 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

credit against income tax for contributions for scholarships to attend elementary and secondary schools, for

upgrading elementary and secondary school facilities, and

for expenses related to technology for elementary and

secondary schools.

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 ‘‘Voluntary Opportuni5 ties for Increasing Contributions to Education Act’’.
2

•HR 1681 IH

1 SEC. 2. CREDIT FOR CONTRIBUTIONS FOR THE BENEFIT OF

2 ELEMENTARY AND SECONDARY SCHOOLS.

3 (a) IN GENERAL.—Subpart B of part IV of sub4 chapter A of chapter 1 of the Internal Revenue Code of

5 1986 is amended by adding at the end the following new

6 section:

7 ‘‘SEC. 30B. CREDIT FOR CONTRIBUTIONS FOR THE BENEFIT

8 OF ELEMENTARY AND SECONDARY SCHOOLS.

9 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al10 lowed as a credit against the tax imposed by this chapter

11 for the taxable year an amount equal to 75 percent of the

12 qualified charitable contributions of the taxpayer for the

13 taxable year.

14 ‘‘(b) MAXIMUM CREDIT.—

15 ‘‘(1) INDIVIDUALS.—In the case of a taxpayer

16 other than a corporation, the credit allowed by sub17 section (a) for any taxable year shall not exceed

18 $500 ($1,000 in the case of a joint return).

19 ‘‘(2) CORPORATIONS.—In the case of a corpora20 tion, the credit allowed by subsection (a) shall not

21 exceed $100,000.

22 ‘‘(c) QUALIFIED CHARITABLE CONTRIBUTION.—For

23 purposes of this section—

24 ‘‘(1) IN GENERAL.—The term ‘qualified chari25 table contribution’ means, with respect to any tax26 able year, the aggregate amount allowable as a de-
3

•HR 1681 IH

1 duction under section 170 (determined without re2 gard to subsection (d)(1)) for cash contributions—

3 ‘‘(A) to a school tuition organization,

4 ‘‘(B) for the improvement, renovation, or

5 construction of a school facility that is used pri6 marily to provide education at the elementary

7 or secondary level, and

8 ‘‘(C) for the acquisition of computer tech9 nology or equipment (as defined in subpara10 graph (E)(i) of section 170(e)(6)), or for train11 ing related to the use of such technology or

12 equipment, for use in a school facility described

13 in subparagraph (B).

14 ‘‘(2) SCHOOL TUITION ORGANIZATION.—

15 ‘‘(A) IN GENERAL.—The term ‘school tui16 tion organization’ means any organization

17 which—

18 ‘‘(i) is described in section 170(c)(2),

19 ‘‘(ii) allocates at least 90 percent of

20 its gross income and contributions and

21 gifts to elementary and secondary school

22 scholarships, and

23 ‘‘(iii) awards scholarships to any stu24 dent who is eligible for free or reduced cost

25 lunch under the school program established
4

•HR 1681 IH

1 under the Richard B. Russell National

2 School Lunch Act.

3 ‘‘(B) ELEMENTARY AND SECONDARY

4 SCHOOL SCHOLARSHIP.—The term ‘elementary

5 and secondary school scholarship’ means any

6 scholarship excludable from gross income under

7 section 117 for expenses related to education at

8 or below the 12th grade.

9 ‘‘(3) SCHOOL FACILITY.—The term ‘school fa10 cility’ shall not include any stadium or other facility

11 primarily used for athletic contests or exhibitions or

12 other events for which admission is charged to the

13 general public.

14 ‘‘(d) SPECIAL RULES.—

15 ‘‘(1) DENIAL OF DOUBLE BENEFIT.—No deduc16 tion shall be allowed under this chapter for any con17 tribution for which credit is allowed under this sec18 tion.

19 ‘‘(2) APPLICATION WITH OTHER CREDITS.—

20 The credit allowable under subsection (a) for any

21 taxable year shall not exceed the excess (if any) of—

22 ‘‘(A) the regular tax for the taxable year,

23 reduced by the sum of the credits allowable

24 under subpart A and the preceding sections of

25 this subpart, over
5

•HR 1681 IH

1 ‘‘(B) the tentative minimum tax for the

2 taxable year.

3 ‘‘(3) CONTROLLED GROUPS.—All persons who

4 are treated as one employer under subsection (a) or

5 (b) of section 52 shall be treated as 1 taxpayer for

6 purposes of this section.

7 ‘‘(e) ELECTION TO HAVE CREDIT NOT APPLY.—A

8 taxpayer may elect to have this section not apply for any

9 taxable year.’’.

10 (b) CLERICAL AMENDMENT.—The table of sections

11 for subpart B of part IV of subchapter A of chapter 1

12 of such Code is amended by adding at the end the fol13 lowing new item:

‘‘Sec. 30B. Credit for contributions for the benefit of elementary

and secondary schools.’’.

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

15 this section shall apply to taxable years beginning after

16 December 31, 2001.

Æ