I 
109TH CONGRESS 
1ST SESSION 
H. R. 441 
To amend the Internal Revenue Code of 1986 to allow a refundable credit 
against income tax for tuition expenses incurred for each qualifying 
child of the taxpayer in attending public or private elementary or sec-
ondary school. 
IN THE HOUSE OF REPRESENTATIVES 
FEBRUARY 1, 2005 
Mr. SMITH of New Jersey 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 
refundable credit against income tax for tuition expenses 
incurred for each qualifying child of the taxpayer in 
attending public or private elementary or secondary 
school. 
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 ‘‘Education, Achieve-
ment, and Opportunity Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following:
(1) Private schools supplement the public school 
system and are a vital component of our Nation’s 
school network. 
(2) The public school system was created to 
serve students, not the other way around. Children 
should have the opportunity to attend the school sys-
tem that is most conducive to developing their abili-
ties, and parents have the right to choose the public 
or private school that best meets their child’s indi-
vidual needs. 
SEC. 3. CREDIT FOR ELEMENTARY AND SECONDARY EDU-
CATION EXPENSES. 
(a) IN GENERAL.—Subpart C of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to refundable credits) is amended by redes-
ignating section 36 as section 37 and by inserting after 
section 35 the following new section: 
‘‘SEC. 36. ELEMENTARY AND SECONDARY EDUCATION EX-
PENSES. 
‘‘(a) ALLOWANCE OF CREDIT.— 
‘‘(1) IN
GENERAL.—In the case of an indi-
vidual, there shall be allowed as a credit against the 
tax imposed by this subtitle for the taxable year the 
amount of the qualified education expenses paid by
the taxpayer during the taxable year for each quali-
fying child of the taxpayer. 
‘‘(2) AMOUNT
PER
CHILD.—The amount of 
credit allowable under paragraph (1) for any taxable 
year with respect to the qualified education expenses 
of each qualifying child of the taxpayer shall not ex-
ceed— 
‘‘(A) $2,500 for a child enrolled in an ele-
mentary school for any portion of the taxable 
year, and 
‘‘(B) $3,500 for a child enrolled in a sec-
ondary school for any portion of the taxable 
year. 
In any taxable year in which a child meets the re-
quirements of both subparagraphs (A) and (B), the 
amount of credit allowable shall not exceed the sum 
of the amounts in such subparagraphs. 
‘‘(b) LIMITATION BASED ON ADJUSTED GROSS IN-
COME.— 
‘‘(1) IN GENERAL.—The amount of the credit 
allowable under subsection (a) (after the application 
of subsection (a)(2)) shall be reduced (but not below 
zero) by $50 for each $1,000 (or fraction thereof) by 
which the taxpayer’s modified adjusted gross income 
exceeds the threshold amount.
‘‘(2) DEFINITIONS AND SPECIAL RULES.—For 
purposes of this paragraph (1)— 
‘‘(A) THRESHOLD
AMOUNT.—The term 
‘threshold amount’ means— 
‘‘(i) $150,000 in the case of a joint 
return, and 
‘‘(ii) $75,000 in any other case. 
‘‘(B) MODIFIED
ADJUSTED
GROSS
IN-
COME.—The term ‘modified adjusted gross in-
come’ means adjusted gross income increased 
by any amount excluded from gross income 
under section 911, 931, or 933. 
‘‘(C) MARITAL
STATUS.—Marital status 
shall be determined under section 7703. 
‘‘(c) DEFINITIONS.—For purposes of this section— 
‘‘(1) QUALIFYING CHILD.—The term ‘qualifying 
child’ has the meaning provided by section 24(c). 
‘‘(2) QUALIFIED EDUCATION EXPENSES.— 
‘‘(A) IN
GENERAL.—The term ‘qualified 
education expenses’ means amounts paid for— 
‘‘(i) tuition and fees required for the 
enrollment or attendance of a student at a 
qualified educational institution, 
‘‘(ii) computers, educational software, 
computer support services, and books re-
quired for courses of instruction at a quali-
fied educational institution, 
‘‘(iii) academic tutoring (by a person 
other than the taxpayer), 
‘‘(iv) special needs services for quali-
fying children with disabilities (within the 
meaning of the Americans With Disabil-
ities Act of 1990), 
‘‘(v) fees for transportation services to 
and from a private school, if the transpor-
tation is provided by the school and the 
school charges a fee for the transportation, 
and 
‘‘(vi) academic testing services. 
‘‘(B) AMOUNTS
EXCLUDED.—The term 
does not include special school fees for nonaca-
demic purposes, including fees for student ac-
tivities, athletics, insurance, school uniforms, 
and nonacademic after-school activities. 
‘‘(3) QUALIFIED EDUCATIONAL INSTITUTION.— 
The term ‘qualified educational institution’ means— 
‘‘(A) an elementary or secondary school (as 
defined in section 14101 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 
8801)), or
‘‘(B) any private, parochial, or religious 
school organized for the purpose of providing el-
ementary or secondary education, or both. 
‘‘(d) ADJUSTMENT FOR COVERDELL SAVINGS AC-
COUNT DISTRIBUTIONS.—The amount of qualified edu-
cation expenses taken into account under subsection (a) 
with respect to an individual for a taxable year shall be 
reduced (before the application of subsection (b)) by the 
sum of any amounts not includible in gross income under 
section 530(d)(2)(B) for such taxable year by reason of 
the qualified elementary and secondary education expenses 
(as defined in section 530(b)(4)) of such individual for 
such taxable year.’’. 
(b) TECHNICAL AMENDMENTS.— 
(1) Paragraph (2) of section 1324(b) of title 
31, United States Code, is amended by striking ‘‘or’’ 
after ‘‘1978,’’ and by inserting before the period ‘‘, 
or enacted by the Education, Achievement, and Op-
portunity Act’’. 
(2) The table of sections for subpart C of part 
IV of subchapter A of chapter 1 of the Internal Rev-
enue Code of 1986 is amended by striking the last 
item and inserting the following new items: 
‘‘Sec. 36. Elementary and secondary education expenses. 
‘‘Sec. 37. Overpayments of tax.’’.
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
the date of the enactment of this Act. 
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