I
107TH CONGRESS
1ST SESSION
H. R. 1681
To amend the Internal Revenue Code of 1986 to allow a credit against
income tax for contributions for scholarships to attend elementary and
secondary schools, for upgrading elementary and secondary school facili-
ties, and for expenses related to technology for elementary and secondary
schools.
IN THE HOUSE OF REPRESENTATIVES
MAY 2, 2001
Mr. HOEKSTRA (for himself, Mr. SCHAFFER, and Mr. CANTOR) 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 contributions for scholar-
ships to attend elementary and secondary schools, for
upgrading elementary and secondary school facilities, and
for expenses related to technology for elementary and
secondary 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 ‘‘Voluntary Opportuni-
ties for Increasing Contributions to Education Act’’.
SEC. 2. CREDIT FOR CONTRIBUTIONS FOR THE BENEFIT OF
ELEMENTARY AND SECONDARY 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 CONTRIBUTIONS FOR THE BENEFIT
OF ELEMENTARY AND SECONDARY 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 75 percent of the
qualified charitable contributions of the taxpayer for the
taxable year.
‘‘(b) MAXIMUM CREDIT.—
‘‘(1) INDIVIDUALS.—In the case of a taxpayer
other than a corporation, the credit allowed by sub-
section (a) for any taxable year shall not exceed
$500 ($1,000 in the case of a joint return).
‘‘(2) CORPORATIONS.—In the case of a corpora-
tion, the credit allowed by subsection (a) shall not
exceed $100,000.
‘‘(c) 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 aggregate amount allowable as a de-
duction under section 170 (determined without re-
gard to subsection (d)(1)) for cash contributions—
‘‘(A) to a school tuition organization,
‘‘(B) for the improvement, renovation, or
construction of a school facility that is used pri-
marily to provide education at the elementary
or secondary level, and
‘‘(C) for the acquisition of computer tech-
nology or equipment (as defined in subpara-
graph (E)(i) of section 170(e)(6)), or for train-
ing related to the use of such technology or
equipment, for use in a school facility described
in subparagraph (B).
‘‘(2) SCHOOL TUITION ORGANIZATION.—
‘‘(A) IN GENERAL.—The term ‘school tui-
tion organization’ means any organization
which—
‘‘(i) is described in section 170(c)(2),
‘‘(ii) allocates at least 90 percent of
its gross income and contributions and
gifts to elementary and secondary school
scholarships, and
‘‘(iii) awards scholarships to any stu-
dent who is eligible for free or reduced cost
lunch under the school program established
under the Richard B. Russell National
School Lunch Act.
‘‘(B) 
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.
‘‘(3) SCHOOL FACILITY.—The term ‘school fa-
cility’ shall not include any stadium or other facility
primarily used for athletic contests or exhibitions or
other events for which admission is charged to the
general public.
‘‘(d) 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.
‘‘(e) 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 fol-
lowing new item:
‘‘Sec. 30B. Credit for contributions for the benefit of elementary
and secondary schools.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2001.
Æ