any 
organization 
described 
in 
section 
170(b)(1)(A)(ii) which provides education solely at 
or below the 12th grade. 
‘‘(3) SCHOOL MATERIALS ORGANIZATION.— 
‘‘(A) IN GENERAL.—The term ‘school ma-
terials organization’ means any organization de-
scribed in section 170(c)(2) if— 
‘‘(i) the primary function of the orga-
nization is to raise funds for elementary or 
secondary schools, and 
‘‘(ii) the annual disbursements of the 
organization for qualified school materials 
which are provided to elementary and sec-
ondary schools are normally not less than 
90 percent of the sum of such organiza-
tion’s annual gross income and contribu-
tions and gifts. 
‘‘(B) QUALIFIED
SCHOOL
MATERIALS.— 
The term ‘qualified school materials’ means— 
‘‘(i) instructional materials and equip-
ment, including library books and mate-
rials, computers, and computer software, 
and 
‘‘(ii) materials and equipment for 
school-sponsored extracurricular activities. 
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‘‘(d) DENIAL OF DOUBLE BENEFIT.—No deduction 
shall be allowed under this chapter for any contribution 
for which a credit is allowed under this section. 
‘‘(e) ELECTION TO HAVE CREDIT NOT APPLY.— 
‘‘(1) IN GENERAL.—A taxpayer may elect to 
have this section not apply for any taxable year. 
‘‘(2) TIME FOR MAKING ELECTION.—An elec-
tion under paragraph (1) for any taxable year may 
be made (or revoked) at any time before the expira-
tion of the 3-year period beginning on the last date 
prescribed by law for filing the return for such tax-
able year (determined without regard to extensions). 
‘‘(f) COST-OF-LIVING ADJUSTMENT.—In the case of 
any taxable year beginning in a calendar year after 2007, 
the dollar amount contained in subsection (b) shall be in-
creased by an amount equal to— 
‘‘(1) such dollar amount, multiplied by 
‘‘(2) the cost-of-living adjustment determined 
under section 1(f)(3) for the calendar year in which 
the taxable year begins, by substituting ‘calendar 
year 2006’ for ‘calendar year 1992’ in subparagraph 
(B) thereof. 
If any increase determined under the preceding sentence 
is not a multiple of $10, such increase shall be increased 
to the next highest multiple of $10. In the case of a mar-
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ried individual (as determined under section 7703) filing 
a separate return, the preceding sentence shall be applied 
by substituting ‘$5’ for ‘$10’ each place it appears. 
‘‘(g) REGULATIONS.—The Secretary shall prescribe 
regulations to carry out this section, including regulations 
providing for claiming the credit under this section on 
Form 1040EZ.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
of such Code, as amended by this Act, is amended by in-
serting after the item relating to section 25E the following 
new item: 
‘‘Sec. 25F. Contributions of and for instructional materials and materials for 
extracurricular activities.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning after 
December 31, 2006. 
Æ 
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