I
106TH CONGRESS
1ST SESSION
H. R. 935
To amend the Internal Revenue Code of 1986 to allow individuals a credit
against income tax for tuition and related expenses for public and non-
public elementary and secondary education.
IN THE HOUSE OF REPRESENTATIVES
MARCH 2, 1999
Mr. PAUL (for himself and Mr. HOSTETTLER) 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 indi-
viduals a credit against income tax for tuition and relat-
ed expenses for public and nonpublic elementary and
secondary education.
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 ‘‘Family Education
Freedom Act of 1999’’.
SEC. 2. CREDIT FOR TUITION AND RELATED EXPENSES
FOR PUBLIC AND NONPUBLIC ELEMENTARY
AND SECONDARY EDUCATION.
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 (relating to nonrefundable personal credits) is
amended by inserting after section 25A the following new
section:
‘‘SEC. 25B. TUITION AND RELATED EXPENSES FOR PUBLIC
AND NONPUBLIC ELEMENTARY AND SECOND-
ARY EDUCATION.
‘‘(a) ALLOWANCE OF CREDIT.—In the case of an in-
dividual, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount
equal to the qualified educational expenses paid during
such taxable year for the elementary or secondary edu-
cation of any dependent (as defined in section 152) of the
taxpayer at a qualified educational institution.
‘‘(b) LIMITATION.—The credit allowed by this section
shall not exceed $3,000 per student for any taxable year.
‘‘(c) DEFINITIONS.—For purposes of this section—
‘‘(1) QUALIFIED
EDUCATIONAL
EXPENSES.—
The term ‘qualified educational expenses’ means cost
of attendance in connection with the elementary or
secondary education of the student at a qualified
educational institution. Under regulations prescribed
by the Secretary, rules similar to the rules relating
to cost of attendance (within the meaning of section
472 of the Higher Education Act of 1965 (20
U.S.C. 1087ll) (as in effect on the date of the enact-
ment of this paragraph) shall apply for purposes of
the preceding sentence.
‘‘(2) QUALIFIED EDUCATIONAL INSTITUTION.—
The term ‘qualified educational institution’ means
any educational institution (including any private,
parochial, religious, or home school) organized for
the purpose of providing elementary or secondary
education, or both.
‘‘(d) ADJUSTMENTS FOR INFLATION.—
‘‘(1) IN GENERAL.—In the case of any taxable
year beginning in a calendar year after 1999, the
$3,000 amount contained in subsection (b) shall be
increased by an amount equal to—
‘‘(A) $3,000, multiplied by
‘‘(B) the cost-of-living adjustment deter-
mined under section 1(f)(3) for the calendar
year in which the taxable year begins by sub-
stituting ‘calendar year 1998’ for ‘calendar year
1992’ in subparagraph (B) thereof.
‘‘(2) ROUNDING.—If any increase determined
under paragraph (1) is not a multiple of $10, such
increase shall be rounded to the next highest mul-
tiple of $10.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for such subpart A is amended by inserting after the item
relating to section 25A the following new item:
‘‘Sec. 25B. Tuition and related expenses for public and nonpublic
elementary and secondary education.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to amounts paid after the date of
the enactment of this Act in taxable years ending after
such date.
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