Education, Achievement, and Opportunity Act

“36C. Elementary and secondary education expenses

“(a) Allowance of credit

“(1) In general—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.

“(2) 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.

“(b) Limitation based on adjusted gross income

“(1) In general—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.

“(2) Definitions and special rules—For purposes of this paragraph (1)—

“(A) Threshold amount—The term threshold amount means—

“(i) $150,000 in the case of a joint return, and

“(ii) $75,000 in any other case.

“(B) 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.

“(C) Marital status—Marital status shall be determined under section 7703.

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

“(1) Qualifying child—The term qualifying child has the meaning given such term in section 24(c).

“(2) Qualified education expenses

“(A) In general—The term qualified education expenses means amounts paid for—

“(i) tuition and fees required for the enrollment or attendance of a student at a qualified educational institution, and

“(ii) so much of the following non-tuition expenses as does not exceed $1,500:

“(I) Computers, educational software, computer support services, and books required for courses of instruction at a qualified educational institution.

“(II) Academic tutoring (by a person other than the taxpayer).

“(III) 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))).

“(IV) 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.

“(V) Academic testing services.

“(B) Amounts excluded—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.

“(3) 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.

“(d) 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.”