[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 716 Introduced in House (IH)]
<DOC>
115th CONGRESS
1st Session
H. R. 716
To amend the Internal Revenue Code of 1986 to encourage the use of 529
plans and Coverdell education savings accounts, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 27, 2017
Mr. Messer introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Education and the Workforce, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to encourage the use of 529
plans and Coverdell education savings accounts, and for other purposes.
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 ``Enhancing Educational Opportunities
for all Students Act''.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
Sec. 1. Short title.
Sec. 2. Table of contents.
TITLE I--TITLE I OF THE ESEA PORTABILITY
Sec. 101. Title I portability.
Sec. 102. Table of contents amendment.
TITLE II--FURTHER CLARIFICATION OF COVERDELL EDUCATION SAVINGS ACCOUNTS
Sec. 201. Allowance of home school expenses as qualified education
expenses for purposes of a Coverdell
Education Savings Account.
Sec. 202. Elimination of Coverdell Education Savings Account
contribution limitation.
TITLE III--529 PROGRAMS FOR ELEMENTARY AND SECONDARY EDUCATION EXPENSES
Sec. 301. 529 programs for pre-kindergarten, elementary, and secondary
education expenses.
TITLE I--TITLE I OF THE ESEA PORTABILITY
SEC. 101. TITLE I PORTABILITY.
Part A of title I of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6311 et seq.) is amended by adding at the end the
following:
``SEC. 1128. TITLE I FUNDS FOLLOW THE LOW-INCOME CHILD STATE OPTION.
``(a) In General.--Notwithstanding any other provision of law and
to the extent permitted under State law, a State educational agency may
allocate grant funds under this part among the local educational
agencies in the State based on the number of eligible children enrolled
in the public schools served by each local educational agency and the
State-accredited private schools within each local educational agency's
geographic jurisdiction.
``(b) Eligible Child.--
``(1) Definition.--In this section, the term `eligible
child' means a child aged 5 to 17, inclusive, 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.
``(2) Criteria of poverty.--In determining the families
with incomes below the poverty level for the purposes of this
section, a State educational agency shall use the criteria of
poverty used by the Census Bureau in compiling the most recent
decennial census, as the criteria have been updated by
increases in the Consumer Price Index for All Urban Consumers,
published by the Bureau of Labor Statistics.
``(c) Student Enrollment in Public and Private Schools.--
``(1) 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 the State-accredited private schools within the
local educational agency's geographic jurisdiction.
``(2) Allocation to local educational agencies.--Based on
the identification of eligible children in paragraph (1), the
State educational agency shall provide to a local educational
agency an amount equal to the sum of the amount available for
each eligible child in the State multiplied by the number of
eligible children identified by the local educational agency
under paragraph (1).
``(3) Distribution to schools.--Each local educational
agency that receives funds under paragraph (2) shall distribute
such funds to the public schools served by the local
educational agency and State-accredited private schools within
the local educational agency's geographic jurisdiction--
``(A) based on the number of eligible children
enrolled in such schools; and
``(B) in a manner that would, in the absence of
such Federal funds, supplement the funds made available
from non-Federal resources for the education of pupils
participating in programs under this subpart, and not
to supplant such funds.''.
SEC. 102. TABLE OF CONTENTS AMENDMENT.
The table of contents in section 2 of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301 et seq.) is amended by inserting
after the item relating to section 1127 the following:
``1128. Title I funds follow the low-income child State option.''.
TITLE II--FURTHER CLARIFICATION OF COVERDELL EDUCATION SAVINGS ACCOUNTS
SEC. 201. ALLOWANCE OF HOME SCHOOL EXPENSES AS QUALIFIED EDUCATION
EXPENSES FOR PURPOSES OF A COVERDELL EDUCATION SAVINGS
ACCOUNT.
(a) In General.--Section 530(b)(3) of the Internal Revenue Code of
1986 is amended by adding at the end the following new subparagraph:
``(C) Private school.--For purposes of this
section, the term `private school' includes any home
school that meets the requirements of State law
applicable to such home schools, whether or not such
school is deemed a private school for purposes of State
law.''.
(b) Effective Date.--The amendment made by this section shall apply
to taxable years beginning after December 31, 2014.
SEC. 202. ELIMINATION OF COVERDELL EDUCATION SAVINGS ACCOUNT
CONTRIBUTION LIMITATION.
(a) In General.--Section 530(b)(1)(A) of the Internal Revenue Code
of 1986 is amended by inserting ``or'' at the end of clause (i), by
striking ``or'' at the end of clause (ii) and inserting a period, and
by striking clause (iii).
(b) Prohibition on Excess Contributions.--Section 530(b) of such
Code is amended by adding at the end the following new paragraph:
``(5) Prohibition on excess contributions.--A program shall
not be treated as a Coverdell education savings account unless
it provides adequate safeguards to prevent contributions on
behalf of a designated beneficiary in excess of those necessary
to provide for the qualified education expenses of the
beneficiary.''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2014.
TITLE III--529 PROGRAMS FOR ELEMENTARY AND SECONDARY EDUCATION EXPENSES
SEC. 301. 529 PROGRAMS FOR PRE-KINDERGARTEN, ELEMENTARY, AND SECONDARY
EDUCATION EXPENSES.
(a) In General.--Section 529(e)(3) of the Internal Revenue Code of
1986 is amended--
(1) by redesignating subparagraph (B) as subparagraph (C);
(2) by striking ``Qualified higher education expenses'' and
all that follows through ``The term `qualified higher education
expenses' means--'' and inserting the following: ``Qualified
education expenses.--
``(A) In general.--The term `qualified education
expenses' means--
``(i) qualified higher education expenses,
and
``(ii) qualified pre-kindergarten,
elementary, and secondary education expenses.
``(B) Qualified higher education expenses.--The
term `qualified higher education expenses' means''; and
(3) by adding at the end the following new subparagraphs:
``(D) Qualified pre-kindergarten, elementary, and
secondary education expenses.--The term `qualified pre-
kindergarten, elementary, and secondary education
expenses' means--
``(i) expenses for tuition, fees, academic
tutoring, special needs services in the case of
a special needs beneficiary, books, supplies,
and other equipment which are incurred in
connection with the enrollment or attendance of
the designated beneficiary of the trust as a
pre-kindergarten, elementary, or secondary
school student at a public, private, or
religious school,
``(ii) expenses for room and board,
uniforms, transportation, and supplementary
items and services (including extended day
programs) which are required or provided by a
public, private, or religious school in
connection with such enrollment or attendance,
and
``(iii) expenses for the purchase of any
computer technology or equipment (as defined in
section 170(e)(6)(F)(i)) or Internet access and
related services, if such technology,
equipment, or services are to be used by the
beneficiary and the beneficiary's family during
any of the years the beneficiary is in school.
Clause (iii) shall not include expenses for computer
software designed for sports, games, or hobbies unless
the software is predominantly educational in nature.
``(E) School.--The term `school' means any school
which provides pre-kindergarten, elementary, or
secondary education (pre-kindergarten through grade
12), as determined under State law. Such a school shall
be treated as an eligible educational institution for
purposes of subsection (b).''.
(b) Conforming Amendments.--Section 529 of such Code is amended by
striking ``qualified higher education'' each place it appears in
subsections (b) and (c) and inserting ``qualified education''.
(c) Effective Date.--The amendments made by this section shall
apply to taxable years beginning after December 31, 2014.
<all>