Title V — Educational enhancements

S. 1852 · 113th Congress · Dec 18, 2013 · Lineage

V Educational enhancements

Sec. 501 Educational opportunity tax credit

(a)

In general— Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25D the following new section:

“25E. Credit for qualified elementary and secondary education expenses

“(a) In general—In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the qualified elementary and secondary education expenses of an eligible student.

“(b) Limitation—The amount taken into account under subsection (a) with respect to any student for any taxable year shall not exceed $5,000.

“(c) Definitions—For purposes of this section—

“(1) Qualified elementary and secondary education expenses—The term qualified elementary and secondary education expenses has the meaning given such term under section 530(b)(3).

“(2) Eligible student—The term eligible student means any student who—

“(A) is enrolled in, or attends, any public, private, or religious school (as defined in section 530(b)(3)(B)), and

“(B) whose principal residence (within the meaning of section 123) is located in an Economic Freedom Zone.

“(3) Economic Freedom Zone—The term Economic Freedom Zone means any area which is an Economic Freedom Zone under title II of the Economic Freedom Zone Act.”

(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:

(c)

Effective date— The amendments made by this section shall apply to expenditures made in taxable years beginning after the date of the enactment of this Act.

Sec. 502 School choice through portability

(a)

In general— Subpart 2 of part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6331 et seq.) is amended by adding at the end the following:

“1128. School choice through portability

“(a) Authorization

“(1) In general—Notwithstanding sections 1124, 1124A, and 1125 and any other provision of law, and to the extent permitted under State law, a State educational agency may allocate grant funds under this subpart among the local educational agencies in the State based on the formula described in paragraph (2).

“(2) Formula—A State educational agency may allocate grant funds under this subpart for a fiscal year among the local educational agencies in the State in proportion to the number of eligible children enrolled in public schools served by the local educational agency and enrolled in State-accredited private schools within the local educational agency’s geographic jurisdiction, for the most recent fiscal year for which satisfactory data are available, compared to the number of such children in all such local educational agencies for that fiscal year.

“(b) Eligible child

“(1) In general—In this section, the term eligible child means a child—

“(A) from a family with an income below the poverty level, on the basis of the most recent satisfactory data published by the Department of Commerce; and

“(B) who resides in an Economic Freedom Zone as designated under title II of the Economic Freedom Zones Act of 2013.

“(2) Criteria of poverty—In determining the families with incomes below the poverty level for the purposes of paragraph (2), a State educational agency shall use the criteria of poverty used by the Census Bureau in compiling the most recent decennial census.

“(3) Identification of eligible children—On an annual basis, on a date to be determined by the State educational agency, each local educational agency that receives grant funding in accordance with subsection (a) shall inform the State educational agency of the number of eligible children enrolled in public schools served by the local educational agency and enrolled in State-accredited private schools within the local educational agency’s geographic jurisdiction.

“(c) Distribution to schools—Each local educational agency that receives grant funding under subsection (a) shall distribute such funds to the public schools served by the local educational agency and State-accredited private schools with the local educational agency’s geographic jurisdiction—

“(1) based on the number of eligible children enrolled in such schools; and

“(2) in the manner that would, in the absence of such Federal funds, supplement the funds made available from the non-Federal resources for the education of pupils participating in programs under this part, and not to supplant such funds.”

(b)

Table of contents— The table of contents in section 2 of the Elementary and Secondary Education Act of 1965 is amended by inserting after the item relating to section 1127 the following:

Sec. 503 Special Economic Freedom Zone visas

(a)

Definitions— In this section:

(1)

Abandoned; dilapidated— The terms abandoned and dilapidated shall be defined by the States in accordance with the provisions of this Act.

(2)

Full-time employment— The term full-time employment means employment in a position that requires at least 35 hours of service per week at any time, regardless of who fills the position.

(b)

Purpose— The purpose of this section is to facilitate increased investment and enhanced human capital in Economic Freedom Zones through the issuance of special regional visas.

(c)

Authorization— The Secretary of Homeland Security, in collaboration with the Secretary of Labor, may issue Special Economic Freedom Zone Visas, in a number determined by the Governor of each State, in consultation with local officials in regions designated by the Secretary of the Treasury as Economic Freedom Zones, to authorize qualified aliens to enter the United States for the purpose of—

(1)

engaging in a new commercial enterprise (including a limited partnership)—

(A)

in which such alien has invested, or is actively in the process of investing, capital in an amount not less than the amount specified in subsection (d); and

(B)

which will benefit the region designated as an Economic Freedom Zone by creating full-time employment of not fewer than 5 United States citizens, aliens lawfully admitted for permanent residence, or other immigrants lawfully authorized to be employed in the United States (excluding the alien and the alien’s immediate family);

(2)

engaging in the purchase and renovation of dilapidated or abandoned properties or residences (as determined by State and local officials) in which such alien has invested, or is actively in the process of investing, in the ownership of such properties or residences; or

(3)

residing and working in an Economic Freedom Zone.

(d)

Effective period— A visa issued to an alien under this section shall expire on the later of—

(1)

the date on which the relevant Economic Freedom Zone loses such designation; or

(2)

the date that is 5 years after the date on which such visa was issued to such alien.

(e)

Capital and educational requirements—

(1)

New commercial enterprises— Except as otherwise provided under this section, the minimum amount of capital required to comply with subsection (c)(1)(A) shall be $50,000.

(2)

Renovation of dilapidated or abandoned properties— An alien is not in compliance with subsection (c)(2) unless the alien—

(A)

purchases a dilapidated or abandoned property in an Economic Freedom Zone; and

(B)

not later than 18 months after such purchase, invests not less than $25,000 to rebuild, rehabilitate, or repurpose the property.

(3)

Verification— A visa issued under subsection (c) shall not remain in effect for more than 2 years unless the Secretary of Homeland Security has verified that the alien has complied with the requirements described in subsection (c).

(4)

Education and skill requirements— An alien is not in compliance with subsection (c)(3) unless the alien possesses—

(A)

a bachelor’s degree (or its equivalent) or an advanced degree;

(B)

a degree or specialty certification that—

(i)

is required for the job the alien will be performing; and

(ii)

is specific to an industry or job that is so complex or unique that it can be performed only by an individual with the specialty certification;

(C)

(i)

the knowledge required to perform the duties of the job the alien will be performing; and

(ii)

the nature of the specific duties is so specialized and complex that such knowledge is usually associated with attainment of a bachelor’s or higher degree; or

(D)

a skill or talent that would benefit the Economic Freedom Zone.

(f)

Additional provisions—

(1)

Geographic limitation— An alien who has been issued a visa under this section is not permitted to live or work outside of an Economic Freedom Zone.

(2)

Rescission— A visa issued under this section shall be rescinded if the visa holder resides or works outside of an Economic Freedom Zone or otherwise fails to comply with the provisions of this section.

(3)

Other visas— An alien who has been issued a visa under this section may apply for any other visa for which the alien is eligible in order to pursue employment outside of an Economic Freedom Zone.

(g)

Adjustment of status— The Secretary of Homeland Security may adjust the status of an alien who has been issued a visa under this section to that of an alien lawfully admitted for permanent residence, without numerical limitation, if the alien—

(1)

has fully complied with the requirements set forth in this section for at least 5 years;

(2)

submits a completed application to the Secretary; and

(3)

is not inadmissible to the United States based on any of the factors set forth in section 212(a) of the Immigration and Nationality Act (8 U.S.C. 1182(a)).

Sec. 504 Economic Freedom Zone educational savings accounts

(a)

In general— Part VIII of subchapter F of chapter 1 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

“530A. Economic Freedom Zone educational savings accounts

“(a) In general—Except as provided in this section, an Economic Freedom Zone educational savings account shall be treated for purposes of this title in the same manner as a Coverdell education savings account.

“(b) Definitions—For purposes of this section—

“(1) Economic Freedom Zone educational savings account—The term Economic Freedom Zone educational savings account means a trust created or organized in the United States exclusively for the purpose of paying the qualified education expenses (as defined in section 530(b)(2)) of an individual who is the designated beneficiary of the trust (and designated as an Economic Freedom Zone educational saving account at the time created or organized) and who is a qualified individual at the time such trust is established, but only if the written governing instrument creating the trust meets the following requirements:

“(A) No contribution will be accepted—

“(i) unless it is in cash,

“(ii) after the date on which such beneficiary attains age 25, or

“(iii) except in the case of rollover contributions, if such contribution would result in aggregate contributions for the taxable year exceeding $10,000.

“(B) No contribution shall be accepted at any time in which the designated beneficiary is not a qualified individual.

“(C) The trust meets the requirements of subparagraphs (B), (C), (D), and (E) of section 530(b)(1).

“(2) Qualified individual—The term qualified individual means any individual whose principal residence (within the meaning of section 121) is located in an Economic Freedom Zone (as defined in section 1400V–6).

“(c) Deduction for contributions

“(1) In general—There shall be allowed as a deduction under part VII of subchapter B of this chapter an amount equal to the aggregate amount of contributions made by the taxpayer to any Economic Freedom Zone educational savings account during the taxable year.

“(2) Limitation—The amount of the deduction allowed under paragraph (1) for any taxpayer for any taxable year shall not exceed $40,000.

“(3) No deduction for rollover contributions—No deduction shall be allowed under paragraph (1) for any rollover contribution described in section 530(d)(5).

“(d) Other rules

“(1) No income limit—In the case of an Economic Freedom Zone educational savings account, subsection (c) of section 530 shall not apply.

“(2) Change in beneficiaries—Notwithstanding paragraph (6) of section 530(b), a change in the beneficiary of an Economic Freedom Zone education savings account shall be treated as a distribution unless the new beneficiary is a qualified individual.”

(b)

Clerical amendment— The table of sections for part VIII of subchapter F of chapter 1 of such Code is amended by adding at the end the following new item: