Title: Helping Parents During COVID Act of 2020
Policy area: Taxation

Summary:
Helping Parents During COVID Act of 2020
This bill allows a tax credit through 2021 for the education costs of a dependent child who is an elementary or secondary student (including kindergarten), if the school district in which the child resides was closed during any part of the taxable year due to COVID-19 (i.e., coronavirus disease 2019).
The bill also allows a $1,200 refundable tax credit for family education assistance.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4639 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4639

To amend the Internal Revenue Code of 1986 to provide a refundable tax 
credit for expenses relating to school disruption, to provide a monthly 
      payment to families during COVID-19, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 22, 2020

  Mr. Hawley introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to provide a refundable tax 
credit for expenses relating to school disruption, to provide a monthly 
      payment to families during COVID-19, and for other purposes.

    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 ``Helping Parents During COVID Act of 
2020''.

SEC. 2. CREDIT FOR COSTS OF EDUCATION.

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

``SEC. 36A. CREDIT FOR COSTS OF EDUCATION.

    ``(a) Allowance of Credit.--In the case of an individual with 
respect to whom there is 1 or more eligible children for any taxable 
year, there shall be allowed as a credit against the tax imposed by 
this subtitle for such taxable year an amount equal to--
            ``(1) $800, multiplied by
            ``(2) the number of eligible children with respect to the 
        individual.
    ``(b) Limitation Based on Adjusted Gross Income.--The amount of the 
credit allowed by subsection (a) (determined without regard to this 
subsection) shall be reduced (but not below zero) by 5 percent of so 
much of the taxpayer's adjusted gross income as exceeds--
            ``(1) $150,000 in the case of a joint return,
            ``(2) $112,500 in the case of a head of household, and
            ``(3) $75,000 in the case of a taxpayer not described in 
        paragraph (1) or (2).
    ``(c) Eligible Child.--The term `eligible child' with respect to an 
individual for a taxable year means a qualifying child (as defined in 
section 152(c)) of the individual who is an elementary or secondary 
student (including kindergarten), if the school district in which such 
child resides was closed, in part or in full, or utilizing virtual, 
distance, or other alternative education models or a hybrid of such 
models and in-person attendance, during any part of the taxable year 
due to COVID-19.
    ``(d) Termination.--This section shall not apply to taxable years 
beginning after December 31, 2021.''.
    (b) Clerical Amendment.--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 inserting after the item relating to section 36 the 
following new item:

``Sec. 36A. Credit for costs of education.''.
    (c) Conforming Amendment.--Section 6211(b)(4)(A) of the Internal 
Revenue Code of 1986 is amended by inserting ``, 36A'' after ``36''.
    (d) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2019.

SEC. 3. FAMILY EDUCATION ASSISTANCE.

    (a) Establishment of Family Education Assistance Credit.--Subpart C 
of part IV of subchapter A of chapter 1 of subtitle A of the Internal 
Revenue Code of 1986, as amended by section 2, is further amended by 
inserting after section 36B the following new section:

``SEC. 36C. FAMILY EDUCATION ASSISTANCE.

    ``(a) In General.--As soon as practicable and not later than two 
weeks after the date of the enactment of this section, the Secretary 
shall establish a program for making family education assistance credit 
payments, including electronic payments, on a monthly basis, without 
respect to tax liability, for each citizen residing with a dependent 
qualifying child equal to $1,200 for each eligible month.
    ``(b) Limitations.--
            ``(1) Limitation based on adjusted gross income.--The 
        amount of the credit allowed by subsection (a) (determined 
        without regard to this subsection) shall be reduced (but not 
        below zero) by 5 percent of so much of the taxpayer's adjusted 
        gross income as exceeds--
                    ``(A) $150,000 in the case of a joint return,
                    ``(B) $112,500 in the case of a head of household, 
                and
                    ``(C) $75,000 in the case of a taxpayer not 
                described in subparagraph (A) or (B).
            ``(2) Household limit.--Family education assistance credit 
        payments may only be claimed by one member of a household, and 
        only one credit may be claimed per residence.
    ``(c) Qualifying Child.--
            ``(1) In general.--In this section, the term `qualifying 
        child' means a qualifying child of the filer (as defined in 
        section 152(c)) who has not attained 18 years of age.
            ``(2) Exception for certain non-citizens.--The term 
        `qualifying child' shall not include any individual who would 
        not be a dependent if subparagraph (A) of section 152(b)(3) 
        were applied without regard to all that follows `resident of 
        the United States'.
    ``(d) Eligible Month.--For purposes of this section--
            ``(1) In general.--The term `eligible month' means, with 
        respect to a qualifying child, any month during which--
                    ``(A) such child is an elementary or secondary 
                student (including kindergarten), and
                    ``(B) either--
                            ``(i) the school district in which such 
                        child resides is closed, in part or in full, or 
                        utilizing virtual, distance, or other 
                        alternative education models or a hybrid of 
                        such models and in-person attendance, during 
                        any part of the month due to COVID-19, or
                            ``(ii) the parent or guardian of such child 
                        elects not to send the child to school due to 
                        COVID-19.
            ``(2) Application and termination.--The term `eligible 
        month' shall include only months beginning after July 31, 2020, 
        and before July 1, 2021. In the case of eligible months 
        occurring before the establishment of the program described in 
        subsection (a), the credit amount attributable to such months 
        shall be paid to the recipient in combination with the credit 
        amount for the first eligible month during which such program 
        is operational.
    ``(e) Application and Verification.--
            ``(1) Application.--The Secretary shall establish an 
        expedited process by which citizens may apply for and provide 
        all necessary information to obtain access to installments of 
        the family education assistance credit outside the annual tax 
        return process utilizing--
                    ``(A) information from the beneficiary's most 
                recent tax return if the beneficiary has filed 
                previously and such return is for 2018 or 2019, and
                    ``(B) any additional or alternative information 
                submissions deemed necessary by the Secretary to 
                facilitate application, verification of eligibility 
                for, and prompt delivery of the family education 
                assistance credit.
            ``(2) Verification.--No credit shall be allowed under this 
        section to a taxpayer on the basis of a qualifying child unless 
        the taxpayer has provided the name and taxpayer identification 
        number of such qualifying child in a manner deemed appropriate 
        for the application process by the Secretary.
            ``(3) Treatment of family education assistance credits for 
        income tax purposes.--
                    ``(A) Nontaxation of credit.--Notwithstanding any 
                other provision of law, no amount received as a family 
                education assistance credit shall be treated as income 
                for the purpose of calculating Federal, State, or local 
                tax liability.
                    ``(B) Effect on tax liability.--The tax liability 
                of a recipient of the family education assistance 
                credit for a taxable year in which payments of such 
                credit are received shall be determined without respect 
                to such credit.''.
    (b) Conforming Amendments.--
            (1) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``, 36C'' after ``36B''.
            (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 inserting before the item relating to section 37 
        the following new item:

``Sec. 36C. Family education assistance.''.
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