Amends the Internal Revenue Code to: (1) allow payment of home school expenses from Coverdell education savings accounts; (2) remove the dollar limitation on contributions to Coverdell education savings accounts and require such accounts to provide adequate safeguards to prevent contributions from exceeding the amount necessary to provide for the qualified education expenses of the account beneficiary; and (3) allow tax-exempt qualified tuition programs (529 tuition programs) to pay qualified pre-kindergarten, elementary, and secondary education expenses.
[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 553 Introduced in House (IH)]
114th CONGRESS
1st Session
H. R. 553
To amend the Internal Revenue Code of 1986 to encourage the use of 529
plans and Coverdell education savings accounts, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 27, 2015
Mr. Messer 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 encourage the use of 529
plans and Coverdell education savings accounts, 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. ALLOWANCE OF HOME SCHOOL EXPENSES AS QUALIFIED EDUCATION
EXPENSES FOR PURPOSES OF A COVERDELL EDUCATION SAVINGS
ACCOUNT.
(a) In General.--Section 530(b)(3) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(C) Private school.--For purposes of this
section, the term `private school' includes any home
school that meets the requirements of State law
applicable to such home schools, whether or not such
school is deemed a private school for purposes of State
law.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2014.
SEC. 2. ELIMINATION OF COVERDELL EDUCATION SAVINGS ACCOUNT CONTRIBUTION
LIMITATION.
(a) In General.--Section 530(b)(1)(A) of the Internal Revenue Code
of 1986 is amended by inserting ``or'' at the end of clause (i), by
striking ``or'' at the end of clause (ii) and inserting a period, and
by striking clause (iii).
(b) Prohibition on Excess Contributions.--Section 530(b) of such
Code is amended by adding at the end the following new paragraph:
``(5) Prohibition on excess contributions.--A program shall
not be treated as a Coverdell education savings account unless
it provides adequate safeguards to prevent contributions on
behalf of a designated beneficiary in excess of those necessary
to provide for the qualified education expenses of the
beneficiary.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2014.
SEC. 3. 529 PROGRAMS FOR PRE-KINDERGARTEN, ELEMENTARY, AND SECONDARY
EDUCATION EXPENSES.
(a) In General.--Section 529(e)(3) of the Internal Revenue Code of
1986 is amended--
(1) by redesignating subparagraph (B) as subparagraph (C);
(2) by striking ``Qualified higher education expenses'' and
all that follows through ``The term `qualified higher education
expenses' means--'' and inserting the following: ``Qualified
education expenses.--
``(A) In general.--The term `qualified education
expenses' means--
``(i) qualified higher education expenses,
and
``(ii) qualified pre-kindergarten,
elementary, and secondary education expenses.
``(B) Qualified higher education expenses.--The
term `qualified higher education expenses' means''; and
(3) by adding at the end the following new subparagraphs:
``(D) Qualified pre-kindergarten, elementary, and
secondary education expenses.--The term `qualified pre-
kindergarten, elementary, and secondary education
expenses' means--
``(i) expenses for tuition, fees, academic
tutoring, special needs services in the case of
a special needs beneficiary, books, supplies,
and other equipment which are incurred in
connection with the enrollment or attendance of
the designated beneficiary of the trust as a
pre-kindergarten, elementary, or secondary
school student at a public, private, or
religious school,
``(ii) expenses for room and board,
uniforms, transportation, and supplementary
items and services (including extended day
programs) which are required or provided by a
public, private, or religious school in
connection with such enrollment or attendance,
and
``(iii) expenses for the purchase of any
computer technology or equipment (as defined in
section 170(e)(6)(F)(i)) or Internet access and
related services, if such technology,
equipment, or services are to be used by the
beneficiary and the beneficiary's family during
any of the years the beneficiary is in school.
Clause (iii) shall not include expenses for computer
software designed for sports, games, or hobbies unless
the software is predominantly educational in nature.
``(E) School.--The term `school' means any school
which provides pre-kindergarten, elementary, or
secondary education (pre-kindergarten through grade
12), as determined under State law. Such a school shall
be treated as an eligible educational institution for
purposes of subsection (b).''.
(b) Conforming Amendments.--Section 529 of such Code is amended by
striking ``qualified higher education'' each place it appears in
subsections (b) and (c) and inserting ``qualified education''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2014.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Ways and Means.
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