H. R. 609
IN THE HOUSE OF REPRESENTATIVES
January 27, 2023
Mr. Smith of New Jersey introduced the following bill; which was referred to the Committee on Ways and Means
To amend the Internal Revenue Code of 1986 to allow a refundable credit against income tax for tuition expenses incurred for each qualifying child of the taxpayer in attending public or private elementary or secondary school.
This Act may be cited as the
Education, Achievement, and Opportunity Act.
Congress finds the following:
Private schools supplement the public school system and are a vital component of our Nation’s school network.
The public school system was created to serve students, not the other way around. Children should have the opportunity to attend the school system that is most conducive to developing their abilities, and parents have the right to choose the public or private school that best meets their child’s individual needs.
Credit for elementary and secondary education expenses
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 inserting after section 36C the following new section:
Elementary and secondary education expenses
Allowance of credit
In the case of an individual, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year the amount of the qualified education expenses paid by the taxpayer during the taxable year for each qualifying child of the taxpayer.
Amount per child
The amount of credit allowable under paragraph (1) for any taxable year with respect to the qualified education expenses of each qualifying child of the taxpayer shall not exceed $10,000.
Limitation based on adjusted gross income
The amount of the credit allowable under subsection (a) (after the application of subsection (a)(2)) shall be reduced (but not below zero) by $50 for each $1,000 (or fraction thereof) by which the taxpayer’s modified adjusted gross income exceeds the threshold amount.
Definitions and special rules
For purposes of this paragraph (1)—
The term threshold amount means—
$150,000 in the case of a joint return, and
$75,000 in any other case.
Modified adjusted gross income
The term modified adjusted gross income means adjusted gross income increased by any amount excluded from gross income under section 911, 931, or 933.
Marital status shall be determined under section 7703.
For purposes of this section—
The term qualifying child has the meaning given such term in section 24(c).
Qualified education expenses
The term qualified education expenses means amounts paid for—
tuition and fees required for the enrollment or attendance of a student at a qualified educational institution, and
so much of the following non-tuition expenses as does not exceed $1,500:
Computers, educational software, computer support services, and books required for courses of instruction at a qualified educational institution.
Academic tutoring (by a person other than the taxpayer).
Special needs services for qualifying children who are children with disabilities (as such term is defined in section 602(3) of the Individuals with Disabilities Education Act (20 U.S.C. 1401(3))).
Fees for transportation services to and from a private school, if the transportation is provided by the school and the school charges a fee for the transportation.
Academic testing services.
The term does not include special school fees for nonacademic purposes, including fees for student activities, athletics, insurance, school uniforms, and nonacademic after-school activities.
Qualified educational institution
The term qualified educational institution means any public, charter, private, parochial, or religious school organized for the purpose of providing elementary or secondary education, or both, without regard to the religious nature, character, affiliation, mission, beliefs, or exercise of such school.
Adjustment for coverdell savings account distributions
The amount of qualified education expenses taken into account under subsection (a) with respect to an individual for a taxable year shall be reduced (before the application of subsection (b)) by the sum of any amounts not includible in gross income under section 530(d)(2) for such taxable year by reason of the qualified elementary and secondary education expenses (as defined in section 530(b)(3)) of such individual for such taxable year.
Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting
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 inserting after the item relating to section 36C the following new item:
Sec. 36D. Elementary and secondary education expenses.
The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.