I

107TH CONGRESS

1ST SESSION H. R. 1029

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

income tax for contributions to charitable organizations which provide

scholarships for children to attend elementary and secondary schools.

IN THE HOUSE OF REPRESENTATIVES

MARCH 14, 2001

Mr. SHADEGG 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 to charitable

organizations which provide scholarships for children to

attend 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 ‘‘Leave No Child Behind

5 Tax Credit Act of 2001’’.
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1 SEC. 2. CREDIT FOR CONTRIBUTIONS TO CHARITABLE OR2 GANIZATIONS WHICH PROVIDE SCHOLAR3 SHIPS FOR STUDENTS ATTENDING ELEMEN4 TARY AND SECONDARY SCHOOLS.

5 (a) IN GENERAL.—Subpart B of part IV of sub6 chapter A of chapter 1 of the Internal Revenue Code of

7 1986 is amended by adding at the end the following new

8 section:

9 ‘‘SEC. 30B. CREDIT FOR CONTRIBUTIONS TO CHARITABLE

10 ORGANIZATIONS WHICH PROVIDE SCHOLAR11 SHIPS FOR STUDENTS ATTENDING ELEMEN12 TARY AND SECONDARY SCHOOLS.

13 ‘‘(a) ALLOWANCE OF CREDIT.—There shall be al14 lowed as a credit against the tax imposed by this chapter

15 for the taxable year an amount equal to the qualified char16 itable contributions of the taxpayer for the taxable year.

17 ‘‘(b) MAXIMUM CREDIT.—The credit allowed by sub18 section (a) for any taxable year shall not exceed $250

19 ($500, in the case of a joint return).

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

21 purposes of this section—

22 ‘‘(1) IN GENERAL.—The term ‘qualified chari23 table contribution’ means, with respect to any tax24 able year, the amount allowable as a deduction

25 under section 170 (determined without regard to
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1 subsection (d)(1)) for cash contributions to a school

2 tuition organization.

3 ‘‘(2) SCHOOL TUITION ORGANIZATION.—

4 ‘‘(A) IN GENERAL.—The term ‘school tui5 tion organization’ means any organization de6 scribed in section 170(c)(2) if the annual dis7 bursements of the organization for elementary

8 and secondary school scholarships are normally

9 not less than 90 percent of the sum of such or10 ganization’s annual gross income and contribu11 tions and gifts.

12 ‘‘(B) ELEMENTARY AND SECONDARY

13 SCHOOL SCHOLARSHIP.—The term ‘elementary

14 and secondary school scholarship’ means any

15 scholarship excludable from gross income under

16 section 117 for expenses related to education at

17 or below the 12th grade.

18 ‘‘(d) SPECIAL RULES.—

19 ‘‘(1) DENIAL OF DOUBLE BENEFIT.—No deduc20 tion shall be allowed under this chapter for any con21 tribution for which credit is allowed under this sec22 tion.

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

24 The credit allowable under subsection (a) for any

25 taxable year shall not exceed the excess (if any) of—
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1 ‘‘(A) the regular tax for the taxable year,

2 reduced by the sum of the credits allowable

3 under subpart A and the preceding sections of

4 this subpart, over

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

6 taxable year.

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

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

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

10 purposes of this section.

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

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

13 taxable year.’’.

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

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

16 of such Code is amended by adding at the end the fol17 lowing new item:

‘‘Sec. 30B. Credit for contributions to charitable organizations

which provide scholarships for students attending

elementary and secondary schools.’’.

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

19 this section shall apply to taxable years beginning after

20 December 31, 2000.

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