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105TH CONGRESS
2D SESSION
H. R. 4780
To amend the Internal Revenue Code of 1986 to allow a credit against
income tax for expenses of attending elementary and secondary schools
and for contributions to charitable organizations which provide scholar-
ships for children to attend such schools.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 9, 1998
Mr. SALMON 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 expenses of attending ele-
mentary and secondary schools and for contributions to
charitable organizations which provide scholarships for
children to attend such schools.
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 ‘‘K–12 Community Par-
ticipation Act of 1998’’.
SEC. 2. CREDIT FOR ELEMENTARY AND SECONDARY
SCHOOL EXPENSES AND FOR CONTRIBU-
TIONS 
TO 
CHARITABLE 
ORGANIZATIONS
WHICH PROVIDE SCHOLARSHIPS FOR STU-
DENTS ATTENDING SUCH SCHOOLS.
(a) IN GENERAL.—Subpart B of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
section:
‘‘SEC. 30B. CREDIT FOR ELEMENTARY AND SECONDARY
SCHOOL EXPENSES AND FOR CONTRIBU-
TIONS 
TO 
CHARITABLE 
ORGANIZATIONS
WHICH PROVIDE SCHOLARSHIPS FOR STU-
DENTS ATTENDING SUCH SCHOOLS.
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter
for the taxable year an amount equal to the sum of—
‘‘(1) the qualified elementary and secondary
education expenses which are paid or incurred by
the taxpayer during such taxable year, and
‘‘(2) the qualified charitable 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—
‘‘(1) $100 in the case of taxable years begin-
ning in calendar year 1998,
‘‘(2) $150 in the case of taxable years begin-
ning in calendar year 1999,
‘‘(3) $200 in the case of taxable years begin-
ning in calendar year 2000, and
‘‘(4) $250 in the case of taxable years begin-
ning after calendar year 2000.
In the case of a joint return, the limitation under this sub-
section shall be twice the dollar amount otherwise applica-
ble under the preceding sentence.
‘‘(c) QUALIFIED
ELEMENTARY
AND
SECONDARY
EDUCATION EXPENSES.—For purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified elemen-
tary and secondary education expenses’ means tui-
tion, fees, tutoring, special needs services, books,
supplies, computer equipment (including related
software and services) and other equipment, trans-
portation, and supplementary expenses required for
the enrollment or attendance of any individual at a
public, private, or religious school.
‘‘(2) SPECIAL RULE FOR HOME-SCHOOLING.—
Such term shall include expenses described in para-
graph (1) required for education provided for
homeschooling if the requirements of any applicable
State or local law are met with respect to such edu-
cation.
‘‘(3) SCHOOL.—The term ‘school’ means any
school which provides elementary education or sec-
ondary education (through grade 12), as determined
under State law.
‘‘(d) QUALIFIED CHARITABLE CONTRIBUTION.—For
purposes of this section—
‘‘(1) IN GENERAL.—The term ‘qualified chari-
table contribution’ means, with respect to any tax-
able year, the amount allowable as a deduction
under section 170 for cash contributions to a school
tuition organization.
‘‘(2) SCHOOL TUITION ORGANIZATION.—
‘‘(A) IN GENERAL.—The term ‘school tui-
tion organization’ means any organization de-
scribed in section 170(c)(2) if the annual dis-
bursements of the organization for elementary
and secondary school scholarship are normally
not less than 90 percent of the sum of such or-
ganization’s annual gross income and contribu-
tions and gifts.
‘‘(B) EXCEPTIONS.—Such term shall not
include any organization if substantially all of
its scholarships (by value) may be used to at-
tend only 1 school.
‘‘(C) 
ELEMENTARY
AND
SECONDARY
SCHOOL SCHOLARSHIP.—The term ‘elementary
and secondary school scholarship’ means any
scholarship excludable from gross income under
section 117 for expenses related to education at
or below the 12th grade.
‘‘(e) SPECIAL RULES.—
‘‘(1) DENIAL OF DOUBLE BENEFIT.—No deduc-
tion shall be allowed under this chapter for any con-
tribution for which credit is allowed under this sec-
tion.
‘‘(2) APPLICATION
WITH
OTHER
CREDITS.—
The credit allowable under subsection (a) for any
taxable year shall not exceed the excess (if any) of—
‘‘(A) the regular tax for the taxable year,
reduced by the sum of the credits allowable
under subpart A and the preceding sections of
this subpart, over
‘‘(B) the tentative minimum tax for the
taxable year.
‘‘(3) CONTROLLED GROUPS.—All persons who
are treated as one employer under subsection (a) or
(b) of section 52 shall be treated as 1 taxpayer for
purposes of this section.
‘‘(f) ELECTION TO HAVE CREDIT NOT APPLY.—A
taxpayer may elect to have this section not apply for any
taxable year.’’
(b) CLERICAL AMENDMENT.—The table of sections
for subpart B of part IV of subchapter A of chapter 1
of such Code is amended by adding at the end the follow-
ing new item:
‘‘Sec. 30B. Credit for elementary and secondary school expenses
and for contributions to charitable organizations
which provide scholarships for students attending
such schools.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 1997.
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