Education Opportunity Tax Credit Act

Education Opportunity Tax Credit Act - Amends the Internal Revenue Code to allow a taxpayer an annual tax credit for tutoring and computer technology or equipment expenses paid on behalf of a dependent elementary or secondary school student (up to $1,000 per student, $2,000 maximum).

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 488 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 488

To amend the Internal Revenue Code of 1986 to provide for a refundable 
                   education opportunity tax credit.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 8, 2001

   Mr. Allen (for himself, Mr. Warner, and Mr. Craig) 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 for a refundable 
                   education opportunity tax credit.

    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 Opportunity Tax Credit 
Act''.

SEC. 2. REFUNDABLE CREDIT FOR ELEMENTARY AND SECONDARY SCHOOL 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 EXPENSES.

    ``(a) Allowance of Credit.--In the case of an individual who 
maintains a household which includes as a member one or more qualifying 
students (as defined in subsection (b)(1)), there shall be allowed as a 
credit against the tax imposed by this subtitle for the taxable year an 
amount equal to the qualified elementary and secondary education 
expenses with respect to such students which are paid or incurred by 
the individual during such taxable year.
    ``(b) Maximum Credit.--The credit allowed by subsection (a) for any 
taxable year shall not exceed the greater of--
            ``(1) $1000 per qualifying student, or
            ``(2) $2000.
    ``(c) Qualifying Student.--For purposes of this section, the term 
``qualifying student'' means a dependent of the taxpayer (within the 
meaning of section 152) who is enrolled in school on a full-time basis.
    ``(d) Qualified Elementary and Secondary Education Expenses.--For 
purposes of this section--
            ``(1) In general.--The term `qualified elementary and 
        secondary education expenses' means tutoring and computer 
        technology or equipment expenses.
            ``(2) Computer technology or equipment.--The term `computer 
        technology or equipment' has the meaning given such term by 
        section 170(e)(6)(E)(i) and includes Internet access and 
        related services.
    ``(e) School.--For purposes of this section, the term `school' 
means any public, charter, private, religious, or home school which 
provides elementary education or secondary education (through grade 
12), as determined under State law.
    ``(f) Denial of Double Benefit.--No deduction shall be allowed 
under this chapter for any contribution for which credit is allowed 
under this section.
    ``(g) Election To Have Credit Not Apply.--A taxpayer may elect to 
have this section not apply for any taxable year.''.
    (b) Conforming Amendments.--
            (1) Section 1324(b)(2) of title 31, United States Code, is 
        amended by striking ``or'' before ``enacted'' and by inserting 
        before the period at the end ``, or from section 35 of such 
        Code''.
            (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 item relating to section 35 and 
        inserting the following new items:

                              ``Sec. 35. Credit for elementary and 
                                        secondary school expenses.
                              ``Sec. 36. Overpayments of tax.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2000.
                                 <all>