I
107TH CONGRESS
1ST SESSION
H. R. 257
To amend the Internal Revenue Code of 1986 to allow a credit against
the income tax for educational expenses incurred in attending public
or private (including religious) elementary and secondary schools and
in homeschooling.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 30, 2001
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 the income tax for educational expenses
incurred in attending public or private (including reli-
gious) elementary and secondary schools and in
homeschooling.
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 Empower-
ment Tax Credit Act’’.
SEC. 2. REFUNDABLE CREDIT FOR ELEMENTARY AND SEC-
ONDARY SCHOOL EDUCATIONAL 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 35 as section 36 and by inserting after
section 34 the following new section:
‘‘SEC. 35. CREDIT FOR ELEMENTARY AND SECONDARY
SCHOOL EDUCATIONAL EXPENSES.
‘‘(a) ALLOWANCE OF CREDIT.—There shall be al-
lowed as a credit against the tax imposed by this chapter
for the taxable year so much of the qualified educational
expenses paid by the taxpayer during the taxable year with
respect to each qualifying child of the taxpayer.
‘‘(b) LIMITATION.—The amount of the credit allow-
able under subsection (a) for a taxable year with respect
to a qualifying child shall not exceed $1,000.
‘‘(c) QUALIFIED EDUCATIONAL EXPENSES.—
‘‘(1) IN GENERAL.—For purposes of this sec-
tion, the term ‘qualified educational expenses’ means
any expense incurred in connection with the enroll-
ment or attendance of a qualifying child in any of
the grades of kindergarten through grade 12 at an
elementary or secondary public or private (including
religious) school located in the United States, and in
connection with homeschooling at the level of any of
such grades, for—
‘‘(A) tuition and fees,
‘‘(B) books,
‘‘(C) academic tutoring,
‘‘(D) special needs services,
‘‘(E) computers and computer equipment
(including software and services), and
‘‘(F) educational supplies.
‘‘(2) EXCEPTION
FOR
EDUCATION
INVOLVING
SPORTS, ETC.—Such term does not include expenses
with respect to any course or other education involv-
ing sports, games, or hobbies.
‘‘(3) EXCEPTION FOR NONACADEMIC FEES.—
Such term does not include student activity fees,
athletic fees, insurance expenses, or other expenses
unrelated to an individual’s academic course of in-
struction.
‘‘(d) QUALIFYING CHILD.—For purposes of this sec-
tion, the term ‘qualifying child’ has the same meaning
given such term in section 24(c), except that ‘20’ shall
be substituted for ‘17’ in paragraph (1)(B) thereof.
‘‘(e) SPECIAL RULES.—For purposes of this section,
rules similar to the rules of paragraphs (1), (3), (4), (5),
(6), and (7) of section 25A(g) shall apply.’’.
(b) TECHNICAL AMENDMENTS.—
(1) Paragraph (2) of section 1324(b) of title
31, United States Code, is amended by inserting ‘‘or
from section 35 of such Code’’ before the period at
the end.
(2) The table of sections for such subpart C is
amended by striking the item relating to section 35
and inserting the following new items:
‘‘Sec. 35. Credit for elementary and secondary school educational
expenses.
‘‘Sec. 36. Overpayment of taxes.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to amounts paid for education
after December 31, 2002, for education furnished in aca-
demic periods beginning after such date.
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