Education Empowerment Tax Credit Act

Education Empowerment Tax Credit Act - Amends the Internal Revenue Code to allow a refundable annual credit of up to $1,000 per qualifying child for specified public or private (including homeschooling) elementary and secondary school expenses.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 257 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 257

 To amend the Internal Revenue Code of 1986 to allow a credit against 
the income tax for educational expenses incurred in attending public or 
 private (including religious) elementary and secondary schools and in 
                             homeschooling.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 30, 2001

  Mr. Cantor 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 
the income tax for educational expenses incurred in attending public or 
 private (including religious) elementary and secondary schools and in 
                             homeschooling.

    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 Empowerment Tax Credit 
Act''.

SEC. 2. REFUNDABLE CREDIT FOR ELEMENTARY AND SECONDARY SCHOOL 
              EDUCATIONAL 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 redesignating section 35 as section 36 and by inserting 
after section 34 the following new section:

``SEC. 35. CREDIT FOR ELEMENTARY AND SECONDARY SCHOOL EDUCATIONAL 
              EXPENSES.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for the taxable year so much of 
the qualified educational expenses paid by the taxpayer during the 
taxable year with respect to each qualifying child of the taxpayer.
    ``(b) Limitation.--The amount of the credit allowable under 
subsection (a) for a taxable year with respect to a qualifying child 
shall not exceed $1,000.
    ``(c) Qualified Educational Expenses.--
            ``(1) In general.--For purposes of this section, the term 
        `qualified educational expenses' means any expense incurred in 
        connection with the enrollment or attendance of a qualifying 
        child in any of the grades of kindergarten through grade 12 at 
        an elementary or secondary public or private (including 
        religious) school located in the United States, and in 
        connection with homeschooling at the level of any of such 
        grades, for--
                    ``(A) tuition and fees,
                    ``(B) books,
                    ``(C) academic tutoring,
                    ``(D) special needs services,
                    ``(E) computers and computer equipment (including 
                software and services), and
                    ``(F) educational supplies.
            ``(2) Exception for education involving sports, etc.--Such 
        term does not include expenses with respect to any course or 
        other education involving sports, games, or hobbies.
            ``(3) Exception for nonacademic fees.--Such term does not 
        include student activity fees, athletic fees, insurance 
        expenses, or other expenses unrelated to an individual's 
        academic course of instruction.
    ``(d) Qualifying Child.--For purposes of this section, the term 
`qualifying child' has the same meaning given such term in section 
24(c), except that `20' shall be substituted for `17' in paragraph 
(1)(B) thereof.
    ``(e) Special Rules.--For purposes of this section, rules similar 
to the rules of paragraphs (1), (3), (4), (5), (6), and (7) of section 
25A(g) shall apply.''.
    (b) Technical Amendments.--
            (1) Paragraph (2) of section 1324(b) of title 31, United 
        States Code, is amended by inserting ``or from section 35 of 
        such Code'' before the period at the end.
            (2) The table of sections for such subpart C is amended by 
        striking the item relating to section 35 and inserting the 
        following new items:

                              ``Sec. 35. Credit for elementary and 
                                        secondary school educational 
                                        expenses.
                              ``Sec. 36. Overpayment of taxes.''

    (c) Effective Date.--The amendments made by this section shall 
apply to amounts paid for education after December 31, 2002, for 
education furnished in academic periods beginning after such date.
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