Promoting Financial Literacy and Economic Opportunity Act of 2015

To amend the Internal Revenue Code of 1986 to allow a tax credit for providing programs to kindergarten, elementary, and secondary students that promote economic and financial literacy. 1. Short title This Act may be cited as the Promoting Financial Literacy and Economic Opportunity Act of 2015 2. Tax credit for providing programs for students that promote economic and financial literacy (a) In general Subpart D of part IV of subchapter A of chapter 1 45S. Excellence in economic education (a) General rule In the case of an eligible for profit organization, for purposes of section 38, the excellence in economic education credit determined under this section for a taxable year is 50 percent of the amount paid or incurred during the taxable year to carry out the purposes specified in section 5533(b) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7267b(b) (b) Limitation on number of credit recipients (1) In general The excellence in economic education credit determined under this section for a taxable year may be allowed to not more than 20 for profit organizations in accordance with paragraph (2). (2) Credit award by Secretary (A) In general The Secretary (in consultation with the Secretary of Education) shall determine which for profit organizations are allowed the credit under this section for a taxable year in such manner as the Secretary determines appropriate. (B) Majority of recipients must be MWOSBs, owned by veterans, or meet asset test In carrying out subparagraph (A), the majority of the taxpayers allowed a credit under paragraph (1) for a taxable year shall be entities that are— (i) either— (I) a socially and economically disadvantaged small business concern (as defined in section 8(a)(4)(A) of the Small Business Act ( 15 U.S.C. 637(a)(4)(A) (II) a small business concern owned and controlled by women (as defined under section 3(n) of such Act ( 15 U.S.C. 632(n) (III) a small business concern (as so defined) that is at least 51 percent owned by veterans (as defined in section 101(2), United States Code), or (ii) on the first day of the taxable year do not have more than $60,000,000,000 in assets. (C) Priority In making determinations under this paragraph, the Secretary shall give priority to taxpayers that have qualified programs which serve either urban or rural underserved areas (determined on the basis of the most recent United States census data available). (c) Limitations relating to expenditures (1) Direct activity 25 percent of the amount allowed as a credit under subsection (a) shall be for amounts paid or incurred for direct activities (as defined in section 5533(b)(1) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7267b(b)(1) (2) Subgrants 75 percent of the amount allowed as a credit under subsection (a) shall be for amounts paid or incurred for subgrants (as defined in section 5533(b)(2) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7267b(b)(1) (d) Definitions and special rules For purposes of this section— (1) Qualified program The term qualified program 20 U.S.C. 7267a 20 U.S.C. 7267b (2) Eligible for profit organization The term eligible for profit organization (A) has a qualified program in effect for the taxable year, and (B) has been determined by the Secretary under subsection (b)(2) to be an organization to whom the credit is allowed for the taxable year. (3) Determination of assets For purposes of paragraph (2)(B), in determining assets, the Secretary shall use the same method used by the Board of Governors of the Federal Reserve System to determine a bank holding company’s consolidated assets under section 165 of the Financial Stability Act of 2010 ( 12 U.S.C. 5365 (4) Election not to claim credit This section shall not apply to a taxpayer for any taxable year if such taxpayer elects to have this section not apply for such taxable year. (5) Coordination with other deductions or credits The amount of any deduction or credit otherwise allowable under this chapter for any amount taken into account for purposes of subsection (a) shall be reduced by the credit allowed by this section. (e) Regulations The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out this section. . (b) Credit made part of general business credit Subsection (b) of section 38 plus , plus (37) the excellence in economic education credit determined under section 45S(a). . (c) Clerical amendment The table of sections for subpart D of part IV of subchapter A of chapter 1 Sec. 45S. Excellence in economic education. . (d) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Summary: Promoting Financial Literacy and Economic Opportunity Act of 2015 This bill amends the Internal Revenue Code to allow up to 20 for-profit organizations in any taxable year a business-related tax credit for 50% of the amount paid or incurred to carry out activities to improve the quality of student understanding of personal finance and economics. The Department of the Treasury shall determine which for-profit organizations are eligible for the credit, ensuring that a majority of credit recipients are: (1) either a socially and economically disadvantaged small business concern, a small business concern owned and controlled by women, or a small business concern that is at least 51% owned by veterans, or (2) do not have more than $60 billion in assets. In determining the eligibility of a for-profit organization, Treasury shall give priority to organizations that have programs serving either urban or rural underserved areas.