Allocating for Children's Education Act

Bill: 114-s-243
Sponsor: full_name: Sen. Fischer, Deb [R-NE]
Introduced: 2015-01-22
Policy area: Taxation
Subjects: Bank accounts, deposits, capital

Elementary and secondary education

Higher education

Income tax exclusion

School athletics

Student aid and college costs
Latest action: action_date: 2015-01-22
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2015-01-22
action_desc: Introduced in Senate
text: <p><strong>Allocating for Children's Education Act or the ACE Act</strong></p> <p>Amends the Internal Revenue Code, with respect to Coverdale education savings accounts, to: (1) increase from $2,000 to $5,000 the maximum allowable contribution to such accounts in a taxable year, and (2) allow distributions from such accounts for the purchase of athletic equipment at elementary and secondary schools.&nbsp;</p>

tv_txt: II 114th CONGRESS 1st Session S. 243 IN THE SENATE OF THE UNITED STATES January 22, 2015 Mrs. Fischer 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 increase the contribution limit for Coverdell education savings accounts from $2,000 to $5,000, and for other purposes.

1. Short title This Act may be cited as the Allocating for Children's Education Act or the ACE Act . 2. Coverdell account contribution limitation increase (a) In general Clause (iii) of section 530(b)(1)(A) of the Internal Revenue Code of 1986 is amended by striking $2,000 and inserting $5,000 . (b) Conforming amendment Subparagraph (A) of section 4973(e)(1) of the Internal Revenue Code of 1986 is amended by striking $2,000 and inserting $5,000 . (c) Effective date The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act. 3. Inclusion of athletic equipment in qualified elementary and secondary education expenses (a) In general Clause (i) of section 530(b)(3)(A) of the Internal Revenue Code of 1986 is amended by striking other equipment and inserting other equipment (including athletic equipment) . (b) Effective date The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.