‘‘(2) TIME FOR MAKING ELECTION.—An elec-
tion under paragraph (1) for any taxable year may 
be made (or revoked) at any time before the expira-
tion of the 3-year period beginning on the last date 
prescribed by law for filing the return for such tax-
able year (determined without regard to extensions). 
‘‘(f) COST-OF-LIVING ADJUSTMENT.—In the case of 
any taxable year beginning in a calendar year after 2007, 
the dollar amount contained in subsection (b) shall be in-
creased by an amount equal to— 
‘‘(1) such dollar amount, multiplied by 
‘‘(2) the cost-of-living adjustment determined 
under section 1(f)(3) for the calendar year in which 
the taxable year begins, by substituting ‘calendar 
year 2006’ for ‘calendar year 1992’ in subparagraph 
(B) thereof. 
If any increase determined under the preceding sentence 
is not a multiple of $10, such increase shall be increased 
to the next highest multiple of $10. In the case of a mar-
ried individual (as determined under section 7703) filing 
a separate return, the preceding sentence shall be applied 
by substituting ‘$5’ for ‘$10’ each place it appears. 
‘‘(g) REGULATIONS.—The Secretary shall prescribe 
regulations to carry out this section, including regulations 
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providing for claiming the credit under this section on 
Form 1040EZ.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 25D the following new item: 
‘‘Sec. 25E. Contributions to organizations providing elementary or secondary 
school scholarships.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
SEC. 3. CREDIT FOR CONTRIBUTIONS OF AND FOR IN-
STRUCTIONAL MATERIALS AND MATERIALS 
FOR EXTRACURRICULAR ACTIVITIES. 
(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), as 
amended by this Act, is amended by inserting after section 
25E the following new section: 
‘‘SEC. 25F. CONTRIBUTIONS OF AND FOR INSTRUCTIONAL 
MATERIALS AND MATERIALS FOR EXTRA-
CURRICULAR ACTIVITIES. 
‘‘(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 
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equal to the qualified school materials contributions of the 
taxpayer for the taxable year. 
‘‘(b) MAXIMUM CREDIT.—The credit allowed by sub-
section (a) for any taxable year shall not exceed $5,000 
(one-half such amount in the case of a married individual 
(as determined under section 7703) filing a separate re-
turn). 
‘‘(c) QUALIFIED SCHOOL MATERIALS CONTRIBU-
TION.—For purposes of this section— 
‘‘(1) IN GENERAL.—The term ‘qualified school 
materials contribution’ means, with respect to any 
taxable year, the amount which would (but for sub-
section (d)) be allowable as a deduction under sec-
tion 170 for— 
‘‘(A) any cash contribution to any elemen-
tary or secondary school if such contribution is 
designated to be used solely to acquire qualified 
school materials, 
‘‘(B) any contribution of qualified school 
materials to any elementary or secondary 
school, and 
‘‘(C) any cash contribution to a school ma-
terials organization. 
‘‘(2) ELEMENTARY OR SECONDARY SCHOOL.— 
The term ‘elementary or secondary school’ means 
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