[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 380 Introduced in House (IH)]
113th CONGRESS
1st Session
H. R. 380
To amend the Internal Revenue Code of 1986 to allow a credit against
income tax for contributions to a trust used to provide need-based
college scholarships.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 23, 2013
Mr. Fattah 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 allow a credit against
income tax for contributions to a trust used to provide need-based
college scholarships.
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 ``Communities Committed to College Tax
Credit Act of 2013''.
SEC. 2. CREDIT FOR CONTRIBUTIONS TO A TRUST USED TO PROVIDE NEED-BASED
COLLEGE SCHOLARSHIPS.
(a) In General.--Subpart B of part IV of subchapter A of chapter 1
of the Internal Revenue Code of 1986 (relating to other credits) is
amended by adding at the end the following new section:
``SEC. 30E. CONTRIBUTIONS TO TRUST USED TO PROVIDE NEED-BASED COLLEGE
SCHOLARSHIPS.
``(a) Allowance of Credit.--In addition to any deduction allowable
under this title, there shall be allowed as a credit against the tax
imposed by this chapter for the taxable year an amount equal to 50
percent of designated qualified college scholarship funding
contributions made by the taxpayer during the taxable year.
``(b) Designated Qualified College Scholarship Funding
Contribution.--For purposes of this section--
``(1) In general.--The term `designated qualified college
scholarship funding contribution' means any charitable
contribution (as defined in section 170(c))--
``(A) which is paid in cash by the taxpayer to a
qualified scholarship funding trust, and
``(B) which is designated by the trust for purposes
of this section.
``(2) Qualified scholarship funding trust.--The term
`qualified scholarship funding trust' means a trust--
``(A) which is established and maintained in the
United States by an organization--
``(i) described in section 501(c)(3) and
exempt from tax under section 501(a), and
``(ii) organized primarily for educational
purposes,
``(B) which is part of a plan of one or more local
education agencies (as defined in section 9101 of the
Elementary and Secondary Education Act of 1965) of the
State in which such trust is established and maintained
to provide scholarships to children of such agencies,
and
``(C) the written governing instrument of which--
``(i) requires that the income of the trust
be used exclusively to provide qualified
scholarships (as defined in section 117(b)) to
individuals who--
``(I) are candidates for a degree
at an institution of higher education
(within the meaning given such term by
section 101 of the Higher Education Act
of 1965 (20 U.S.C. 1001)), and
``(II) have demonstrated financial
need in accordance with section 471 of
such Act (20 U.S.C. 1087kk), and
``(ii) requires that the assets of the
trust not be distributed for any purpose.
``(c) Limitations.--
``(1) In general.--There is a national qualified college
scholarship funding contribution limitation of $1,000,000,000.
``(2) Allocation of limitation.--
``(A) In general.--Such national limitation shall
be allocated by the Secretary among the qualified
scholarship funding trusts which have registered with
the Secretary on or before the 180th day after the date
of the enactment of this section. Each trust's share of
such national limitation shall be the amount which
bears the same ratio to such limitation as the number
of school age children of such trust's sponsoring
agencies bears to the aggregate number of school age
children of the sponsoring agencies of all trusts which
have so registered with the Secretary.
``(B) School age children of sponsoring agencies.--
For purposes of subparagraph (A), the number of school
age children of a trust's sponsoring agencies is the
number of children of the local education agencies
referred to in subsection (b)(2)(B) who have attained
age 5 but not age 18 for the most recent fiscal year
ending before the date the allocations under this
paragraph are made.
``(3) Designation subject to allocated limitation amount.--
The amount of contributions made to a qualified scholarship
funding trust which may be designated by such trust for
purposes of this section shall not exceed the limitation amount
allocated to such trust under paragraph (2).
``(4) Maximum allocation per trust.--The maximum qualified
college scholarship funding contribution limitation which may
be allocated to each trust is $200,000,000. An amount which may
not be allocated to a trust by reason of the preceding sentence
shall be allocated as provided in paragraph (2) among
registered qualified scholarship funding trusts whose allocated
limitation (without regard to this sentence) does not exceed
$200,000,000.
``(d) Application With Other Credits.--
``(1) Business credit treated as part of general business
credit.--So much of the credit which would be allowed under
subsection (a) for any taxable year (determined without regard
to this subsection) to a taxpayer engaged in a trade or
business shall be treated as a credit listed in section 38(b)
for such taxable year (and not allowed under subsection (a)).
``(2) Personal credit.--
``(A) In general.--For purposes of this title, the
credit allowed under subsection (a) for any taxable
year (determined after application of paragraph (1))
shall be treated as a credit allowable under subpart A
for such taxable year.
``(B) Limitation based on amount of tax.--In the
case of a taxable year to which section 26(a)(2) does
not apply, the credit allowed under subsection (a) for
any taxable year (determined after application of
paragraph (1)) shall not exceed the excess of--
``(i) the sum of the regular tax liability
(as defined in section 26(b)) plus the tax
imposed by section 55, over
``(ii) the sum of the credits allowable
under subpart A (other than this section and
sections 23 and 25D) and section 27 for the
taxable year.
``(e) Application of Section.--This section shall apply only to
contributions made during the 3-year period beginning on the 180th day
after the date of the enactment of this section.''.
(b) Conforming Amendments.--
(1) Section 23(b)(4)(B) of such Code is amended by
inserting ``and 30E'' after ``section 25D''.
(2) Sections 24(b)(3)(B), 25A(i)(5)(B), 25B(g)(2),
26(a)(1), 30(c)(2)(B)(ii), 30B(g)(2)(B)(ii), 904(i), and
1400C(d)(2) of such Code are each amended by striking ``and
30D'' and inserting ``30D, and 30E''.
(3) Section 25(e)(1)(C)(ii) of such Code is amended by
inserting ``30E,'' after ``30D,''.
(4) Section 30D(c)(2)(B)(ii) of such Code is amended by
striking ``and 25D'' and inserting ``, 25D, and 30E''.
(5) Section 38(b) of such Code is amended by striking
``plus'' at the end of paragraph (35), by striking the period
at the end of paragraph (36) and inserting ``, plus'', and by
adding at the end the following new paragraph:
``(37) the portion of the credit to which section 30E(d)(1)
applies.''.
(6) 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. 30E. Contributions to trust used to provide need-based college
scholarships.''.
(c) Effective Date.--The amendments made by this section shall
apply to contributions made on or after the 180th day after the date of
the enactment of this Act in taxable years ending after such date.
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