I 
108TH CONGRESS 
2D SESSION 
H. R. 4034
To amend the Internal Revenue Code of 1986 to allow a credit against 
income tax for teacher classroom supply expenses, for improving elemen-
tary and secondary education, and for contributions for scholarships 
to attend elementary and secondary schools, and for other purposes. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 25, 2004
Mr. DEMINT (for himself, Mrs. MUSGRAVE, Mr. BARRETT of South Carolina, 
and Mr. HOEKSTRA) 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 teacher classroom supply 
expenses, for improving elementary and secondary edu-
cation, and for contributions for scholarships to attend 
elementary and secondary schools, and for other pur-
poses.
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 ‘‘National Education 
Advancement (NEA) and Teacher Relief 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) CERTAIN EXPENSES OF ELEMENTARY AND 
SECONDARY SCHOOL TEACHERS.—
‘‘(A) IN GENERAL.—In the case of an indi-
vidual who is an eligible educator, the term 
‘qualified 
charitable 
contribution’ 
includes 
amounts allowable as a deduction by section 
162 paid or incurred by the eligible educator in 
connection with books, supplies (other than 
nonathletic supplies for courses of instruction in 
health or physical education), computer equip-
ment (including related software and services) 
and other equipment, and supplementary mate-
rials used by the eligible educator in the class-
room. 
‘‘(B) COORDINATION WITH EXCLUSIONS.—
An amount shall be allowed as a credit under 
this section for expenses described in subpara-
graph (A) only to the extent the amount of 
such expenses exceeds the amount excludable 
under section 135, 529(c)(1), or 530(d)(2) for 
the taxable year. 
‘‘(3) 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 level. 
‘‘(4) ELIGIBLE EDUCATOR.—
‘‘(A) IN GENERAL.—The term ‘eligible ed-
ucator’ means, with respect to any taxable year, 
an individual who is a kindergarten through 
grade 12 teacher, instructor, counselor, prin-
cipal, or aide in a school for at least 900 hours 
during a school year. 
‘‘(B) SCHOOL.—For purposes of subpara-
graph (A), the term ‘school’ means any school 
which provides elementary education or sec-
ondary education (kindergarten through grade 
12), as determined under State law. 
‘‘(5) 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.—Amounts 
taken into account under subsection (a) shall not be
taken into account in determining any deduction al-
lowed under section 162 or 170. 
‘‘(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. 
‘‘(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, 2003.
SEC. 3. REVISION OF DEFINITION OF SCHOOL FOR PUR-
POSES OF QUALIFIED ELEMENTARY AND 
SECONDARY EDUCATION EXPENSES. 
(a) IN GENERAL.—Paragraph (4) of section 530(b) 
of the Internal Revenue Code of 1986 (defining qualified 
elementary and secondary education expenses) is amend-
ed—
(1) in clauses (i) and (ii) of subparagraph (A), 
by striking ‘‘public, private, or religious’’, and 
(2) in subparagraph (B), by inserting after 
‘‘any school’’ the following: ‘‘, including a public, 
private, religious, or home school,’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2003.
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