I
106TH CONGRESS
1ST SESSION
H. R. 600
To amend the Internal Revenue Code of 1986 to allow a refundable credit
for education expenses.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 4, 1999
Mr. ROGAN (for himself, Mr. TANCREDO, Mr. ARMEY, Mr. WATTS of Okla-
homa, Ms. DUNN, Mr. BILIRAKIS, Mr. NORWOOD, and Mr. FORBES) in-
troduced 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 for education expenses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Children’s Education
Tax Credit Act’’.
SEC. 2. CREDIT FOR EDUCATION EXPENSES.
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to refundable credits) is amended by redes-
ignating section 35 as section 36 and by inserting after
section 34 the following new section:
‘‘SEC. 35. EDUCATION EXPENSES.
‘‘(a) GENERAL RULE.—In the case of an individual,
there shall be allowed as a credit against the tax imposed
by this subtitle for the taxable year the amount of the
qualified education expenses paid by the taxpayer during
the taxable year for the education of any individual with
respect to whom the taxpayer is allowed a deduction under
section 151(c).
‘‘(b) LIMITATION.—The amount allowed as a credit
under subsection (a) for any taxable year with respect to
the qualified education expenses of any 1 individual shall
not exceed $1,000.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED EDUCATION EXPENSES.—
‘‘(A) IN
GENERAL.—The term ‘qualified
education expenses’ means amounts paid for—
‘‘(i) tuition and fees required for the
enrollment or attendance of a student at
an eligible educational institution, and
‘‘(ii) fees, tutoring, books, supplies,
computer equipment (including related
software and services) and other equip-
ment required for courses of instruction at
an eligible educational institution.
‘‘(B) MEALS AND LODGING EXPENSES NOT
INCLUDED.—Such term does not include any
amount paid, directly or indirectly, for meals,
lodging, or similar personal, living, or family ex-
penses. In the event an amount paid for tuition
or fees includes an amount for meals, lodging,
or similar expenses which is not separately stat-
ed, the portion of such amount which is attrib-
utable to meals, lodging, or similar expenses
shall be determined under regulations pre-
scribed by the Secretary.
‘‘(C) SPECIAL RULE FOR HOME SCHOOL-
ING.—In the case of education furnished in the
home (as a substitute for public education)
which meets the requirements of State law re-
lating to compulsory school attendance, the
term ‘qualified education expenses’ means
amounts paid for tutoring, books, supplies,
computer equipment (including related software
and services), and other equipment used in fur-
nishing such education.
‘‘(2) ELIGIBLE EDUCATIONAL INSTITUTION.—
The term ‘eligible educational institution’ means—
‘‘(A) a secondary school,
‘‘(B) an elementary school, or
‘‘(C) any private, parochial, religious, or
home school organized for the purpose of pro-
viding elementary or secondary education, or
both.
‘‘(3) 
ELEMENTARY
AND
SECONDARY
SCHOOLS.—The terms ‘elementary school’ and ‘sec-
ondary school’ have the respective meanings given
such terms by section 14101 of the Elementary and
Secondary Education Act of 1965.
‘‘(d) ADJUSTMENT FOR CERTAIN SCHOLARSHIPS.—
The amounts otherwise taken into account under sub-
section (a) as qualified education expenses of any individ-
ual during any period shall be reduced (before the applica-
tion of subsection (b)) by the sum of the amounts received
with respect to such individual for the taxable year as a
qualified scholarship which under section 117 is not in-
cludable in gross income.
‘‘(e) REGULATIONS.—The Secretary shall prescribe
such regulations as may be necessary to carry out the pro-
visions of this section.’’
(b) TECHNICAL AMENDMENTS.—
(1) Paragraph (2) of section 1324(b) of title
31, United States Code, is amended by striking ‘‘or’’
after ‘‘1978,’’ and by inserting before the period
‘‘, or enacted by the Children’s Education Tax Cred-
it Act’’.
(2) The table of sections for subpart C of part
IV of subchapter A of chapter 1 of such Code is
amended by striking the last item and inserting the
following new items:
‘‘Sec. 35. Education expenses.
‘‘Sec. 36. Overpayments of tax.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
the date of the enactment of this Act.
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