Tax and Education Assistance for Children (TEACH) Act of 2006

Tax and Education Assistance for Children (TEACH) Act of 2006 - Amends the Internal Revenue Code to establish a tax credit for the tuition paid by taxpayers to send their dependents to private or religious elementary or secondary schools. Sets the annual credit limit at $4,500 for single individuals and taxpayers filing a joint return, and $2,250 for a married individual filing a separate return.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 3792 Introduced in Senate (IS)]








109th CONGRESS
  2d Session
                                S. 3792

 To amend the Internal Revenue Code of 1986 to allow a credit against 
     tax for qualified elementary and secondary education tuition.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 3, 2006

 Mr. Martinez 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 allow a credit against 
     tax for qualified elementary and secondary education tuition.

    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 ``Tax and Education Assistance for 
Children (TEACH) Act of 2006''.

SEC. 2. CREDIT FOR QUALIFIED ELEMENTARY AND SECONDARY EDUCATION 
              TUITION.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 (relating to nonrefundable 
personal credits) is amended by inserting after section 25D the 
following new section:

``SEC. 25E. QUALIFIED ELEMENTARY AND SECONDARY EDUCATION TUITION.

    ``(a) Allowance of Credit.--There shall be allowed as a credit 
against the tax imposed by this chapter for a taxable year an amount 
equal to the qualified elementary and secondary education tuition paid 
or incurred by the taxpayer during the taxable year.
    ``(b) Dollar Limitation.--The amount allowed as a credit under 
subsection (a) with respect to the taxpayer for any taxable year shall 
not exceed--
            ``(1) $4,500 in the case of a joint return,
            ``(2) $4,500 in the case of an individual who is not 
        married, and
            ``(3) $2,250 in the case of a married individual filing a 
        separate return.
    ``(c) Qualified Elementary and Secondary Education Tuition.--
            ``(1) In general.--The term `qualified elementary and 
        secondary education tuition' means expenses for tuition which 
        are incurred in connection with the enrollment or attendance of 
        any dependent of the taxpayer with respect to whom the taxpayer 
        is allowed a deduction under section 151 as an elementary or 
        secondary school student at a private or religious school.
            ``(2) School.--The term `school' means any school which 
        provides elementary education or secondary education 
        (kindergarten through grade 12), as determined under State 
        law.''.
    (b) Clerical Amendment.--The table of sections for subpart A of 
part IV of subchapter A of chapter 1 of such Code is amended by 
inserting after the item relating to section 25D the following new 
item:

``Sec. 25E. Qualified elementary and secondary education tuition.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after December 31, 2006.
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