I 

108TH CONGRESS 

2D SESSION H. R. 4034

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

income tax for teacher classroom supply expenses, for improving elementary and secondary education, and for contributions for scholarships 

to attend elementary and secondary schools, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 25, 2004

Mr. DEMINT (for himself, Mrs. MUSGRAVE, Mr. BARRETT of South Carolina, 

and Mr. HOEKSTRA) 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 teacher classroom supply 

expenses, for improving elementary and secondary education, and for contributions for scholarships to attend 

elementary and secondary schools, and for other purposes.

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 ‘‘National Education 

5 Advancement (NEA) and Teacher Relief Act’’. 
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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-
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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) CERTAIN EXPENSES OF ELEMENTARY AND

15 SECONDARY SCHOOL TEACHERS.—

16 ‘‘(A) IN GENERAL.—In the case of an indi17 vidual who is an eligible educator, the term 

18 ‘qualified charitable contribution’ includes 

19 amounts allowable as a deduction by section 

20 162 paid or incurred by the eligible educator in 

21 connection with books, supplies (other than 

22 nonathletic supplies for courses of instruction in 

23 health or physical education), computer equip24 ment (including related software and services) 

25 and other equipment, and supplementary mate-
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1 rials used by the eligible educator in the class2 room. 

3 ‘‘(B) COORDINATION WITH EXCLUSIONS.—

4 An amount shall be allowed as a credit under 

5 this section for expenses described in subpara6 graph (A) only to the extent the amount of 

7 such expenses exceeds the amount excludable 

8 under section 135, 529(c)(1), or 530(d)(2) for 

9 the taxable year. 

10 ‘‘(3) SCHOOL TUITION ORGANIZATION.—

11 ‘‘(A) IN GENERAL.—The term ‘school tui12 tion organization’ means any organization 

13 which—

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

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

16 its gross income and contributions and 

17 gifts to elementary and secondary school 

18 scholarships, and 

19 ‘‘(iii) awards scholarships to any stu20 dent who is eligible for free or reduced cost 

21 lunch under the school program established 

22 under the Richard B. Russell National 

23 School Lunch Act. 

24 ‘‘(B) ELEMENTARY AND SECONDARY

25 SCHOOL SCHOLARSHIP.—The term ‘elementary 
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1 and secondary school scholarship’ means any 

2 scholarship excludable from gross income under 

3 section 117 for expenses related to education at 

4 or below the 12th grade level. 

5 ‘‘(4) ELIGIBLE EDUCATOR.—

6 ‘‘(A) IN GENERAL.—The term ‘eligible ed7 ucator’ means, with respect to any taxable year, 

8 an individual who is a kindergarten through 

9 grade 12 teacher, instructor, counselor, prin10 cipal, or aide in a school for at least 900 hours 

11 during a school year. 

12 ‘‘(B) SCHOOL.—For purposes of subpara13 graph (A), the term ‘school’ means any school 

14 which provides elementary education or sec15 ondary education (kindergarten through grade 

16 12), as determined under State law. 

17 ‘‘(5) SCHOOL FACILITY.—The term ‘school fa18 cility’ shall not include any stadium or other facility 

19 primarily used for athletic contests or exhibitions or 

20 other events for which admission is charged to the 

21 general public. 

22 ‘‘(d) SPECIAL RULES.—

23 ‘‘(1) DENIAL OF DOUBLE BENEFIT.—Amounts 

24 taken into account under subsection (a) shall not be 
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1 taken into account in determining any deduction al2 lowed under section 162 or 170. 

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

4 The credit allowable under subsection (a) for any 

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

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

7 reduced by the sum of the credits allowable 

8 under subpart A and the preceding sections of 

9 this subpart, over 

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

11 taxable year. 

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

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

14 taxable year.’’. 

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

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

17 of such Code is amended by adding at the end the fol18 lowing new item:

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

schools.’’.

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

20 this section shall apply to taxable years beginning after 

21 December 31, 2003. 
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1 SEC. 3. REVISION OF DEFINITION OF SCHOOL FOR PUR2 POSES OF QUALIFIED ELEMENTARY AND 

3 SECONDARY EDUCATION EXPENSES. 

4 (a) IN GENERAL.—Paragraph (4) of section 530(b) 

5 of the Internal Revenue Code of 1986 (defining qualified 

6 elementary and secondary education expenses) is amend7 ed—

8 (1) in clauses (i) and (ii) of subparagraph (A), 

9 by striking ‘‘public, private, or religious’’, and 

10 (2) in subparagraph (B), by inserting after 

11 ‘‘any school’’ the following: ‘‘, including a public, 

12 private, religious, or home school,’’. 

13 (b) EFFECTIVE DATE.—The amendments made by 

14 this section shall apply to taxable years beginning after 

15 December 31, 2003.

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