I
107TH CONGRESS
1ST SESSION
H. R. 1029
To amend the Internal Revenue Code of 1986 to allow a credit against
income tax for contributions to charitable organizations which provide
scholarships for children to attend elementary and secondary schools.
IN THE HOUSE OF REPRESENTATIVES
MARCH 14, 2001
Mr. SHADEGG 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 to charitable
organizations which provide scholarships for children to
attend 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 ‘‘Leave No Child Behind
Tax Credit Act of 2001’’.
SEC. 2. CREDIT FOR CONTRIBUTIONS TO CHARITABLE OR-
GANIZATIONS 
WHICH 
PROVIDE 
SCHOLAR-
SHIPS FOR STUDENTS ATTENDING ELEMEN-
TARY 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 TO CHARITABLE
ORGANIZATIONS WHICH PROVIDE SCHOLAR-
SHIPS FOR STUDENTS ATTENDING ELEMEN-
TARY 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 the qualified char-
itable 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 $250
($500, in the case of a joint return).
‘‘(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 amount allowable as a deduction
under section 170 (determined without regard to
subsection (d)(1)) 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 scholarships are normally
not less than 90 percent of the sum of such or-
ganization’s annual gross income and contribu-
tions and gifts.
‘‘(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.
‘‘(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 to charitable organizations
which provide scholarships for students attending
elementary and secondary schools.’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years beginning after
December 31, 2000.
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