To amend the Internal Revenue Code of 1986 to allow a credit against income tax for contributions for scholarships to attend elementary and secondary schools, for upgrading elementary and secondary school facilities, and for expenses related to technology for elementary and secondary schools.

January 7, 2003

Mr. HOEKSTRA 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 credit against income tax for contributions for scholarships to attend elementary and secondary schools, for upgrading elementary and secondary school facilities, and for expenses related to technology for elementary and secondary schools.

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 `Voluntary Opportunities for Increasing Contributions to Education Act'.

SEC. 2. CREDIT FOR CONTRIBUTIONS FOR THE BENEFIT OF ELEMENTARY AND SECONDARY SCHOOLS.

(a) IN GENERAL- Subpart B of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

`SEC. 30B. CREDIT FOR CONTRIBUTIONS FOR THE BENEFIT OF ELEMENTARY AND SECONDARY SCHOOLS.

`(a) ALLOWANCE OF CREDIT- There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to 75 percent of the qualified charitable contributions of the taxpayer for the taxable year.

`(b) MAXIMUM CREDIT-

`(1) INDIVIDUALS- In the case of a taxpayer other than a corporation, the credit allowed by subsection (a) for any taxable year shall not exceed $500 ($1,000 in the case of a joint return).

`(2) CORPORATIONS- In the case of a corporation, the credit allowed by subsection (a) shall not exceed $100,000.

`(c) QUALIFIED CHARITABLE CONTRIBUTION- For purposes of this section--

`(1) IN GENERAL- The term `qualified charitable contribution' means, with respect to any taxable year, the aggregate amount allowable as a deduction under section 170 (determined without regard to subsection (d)(1)) for cash contributions--

`(A) to a school tuition organization,

`(B) for the improvement, renovation, or construction of a school facility that is used primarily to provide education at the elementary or secondary level, and

`(C) for the acquisition of computer technology or equipment (as defined in subparagraph (E)(i) of section 170(e)(6)), or for training related to the use of such technology or equipment, for use in a school facility described in subparagraph (B).

`(2) SCHOOL TUITION ORGANIZATION-

`(A) IN GENERAL- The term `school tuition organization' means any organization which--

`(i) is described in section 170(c)(2),

`(ii) allocates at least 90 percent of its gross income and contributions and gifts to elementary and secondary school scholarships, and

`(iii) awards scholarships to any student who is eligible for free or reduced cost lunch under the school program established under the Richard B. Russell National School Lunch Act.

`(B) ELEMENTARY AND SECONDARY SCHOOL SCHOLARSHIP- The term `elementary and secondary school scholarship' means any scholarship excludable from gross income under section 117 for expenses related to education at or below the 12th grade.

`(3) SCHOOL FACILITY- The term `school facility' shall not include any stadium or other facility primarily used for athletic contests or exhibitions or other events for which admission is charged to the general public.

`(d) SPECIAL RULES-

`(1) DENIAL OF DOUBLE BENEFIT- No deduction shall be allowed under this chapter for any contribution for which credit is allowed under this section.

`(2) APPLICATION WITH OTHER CREDITS- The credit allowable under subsection (a) for any taxable year shall not exceed the excess (if any) of--

`(A) the regular tax for the taxable year, reduced by the sum of the credits allowable under subpart A and the preceding sections of this subpart, over

`(B) the tentative minimum tax for the taxable year.

`(3) CONTROLLED GROUPS- All persons who are treated as one employer under subsection (a) or (b) of section 52 shall be treated as 1 taxpayer for purposes of this section.

`(e) ELECTION TO HAVE CREDIT NOT APPLY- A taxpayer may elect to have this section not apply for any taxable year.'.

(b) CLERICAL AMENDMENT- The table of sections for subpart B of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item:

`Sec. 30B. Credit for contributions for the benefit of elementary and secondary schools.'.

(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning after December 31, 2003.

END