Education, Achievement, and Opportunity Act
Bill: H.R.9320 | Sponsor: Rep. Smith, Christopher H. (R-NJ)
Policy area: Taxation

Summary:
Education, Achievement, and Opportunity Act
This bill allows a new refundable tax credit for the qualified education expenses of a taxpayer's child, up to $10,000 for each child. These expenses include tuition and fees for attendance at a public or private elementary or secondary school, and up to $1,500 of expenses for computers and educational software, tutoring, special needs services, transportation services, and academic testing services.

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 Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Education, Achievement, 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 system that is most conducive to 
        developing their abilities, and parents have the right to 
        choose the public or private school that best meets their 
        child's individual needs.

SEC. 3. CREDIT FOR ELEMENTARY AND SECONDARY EDUCATION EXPENSES.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to refundable credits) 
is amended by inserting after section 36C the following new section:

``SEC. 36D. ELEMENTARY AND SECONDARY EDUCATION EXPENSES.

    ``(a) Allowance of Credit.--
            ``(1) In general.--In the case of an individual, 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 qualifying 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 exceed $10,000.
    ``(b) Limitation Based on Adjusted Gross Income.--
            ``(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 income.--The term 
                `modified adjusted gross income' 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 given such term in 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, and
                            ``(ii) so much of the following non-tuition 
                        expenses as does not exceed $1,500:
                                    ``(I) Computers, educational 
                                software, computer support services, 
                                and books required for courses of 
                                instruction at a qualified educational 
                                institution.
                                    ``(II) Academic tutoring (by a 
                                person other than the taxpayer).
                                    ``(III) Special needs services for 
                                qualifying children who are children 
                                with disabilities (as such term is 
                                defined in section 602(3) of the 
                                Individuals with Disabilities Education 
                                Act (20 U.S.C. 1401(3)).
                                    ``(IV) Fees for transportation 
                                services to and from a private school, 
                                if the transportation is provided by 
                                the school and the school charges a fee 
                                for the transportation.
                                    ``(V) Academic testing services.
                    ``(B) Amounts excluded.--The term does not include 
                special school fees for nonacademic purposes, including 
                fees for student activities, athletics, insurance, 
                school uniforms, and nonacademic after-school 
                activities.
            ``(3) Qualified educational institution.--The term 
        `qualified educational institution' means any public, charter, 
        private, parochial, or religious school organized for the 
        purpose of providing elementary or secondary education, or 
        both, without regard to the religious nature, character, 
        affiliation, mission, beliefs, or exercise of such school.
    ``(d) Adjustment for Coverdell Savings Account Distributions.--The 
amount of qualified education 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) for such 
taxable year by reason of the qualified elementary and secondary 
education expenses (as defined in section 530(b)(3)) 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 inserting ``36D,'' after ``36C,''.
            (2) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by striking the last item and inserting the 
        following new items:

``Sec. 36D. Elementary and secondary education expenses.''.
    (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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