Us Congress 2023-2024 Regular Session

Us Congress Senate Bill SB3520 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	II
2	2	118THCONGRESS
3	3	1
4	4	STSESSION S. 3520
5	5	To amend the Internal Revenue Code of 1986 to provide incentives for
6	6	education.
7	7	IN THE SENATE OF THE UNITED STATES
8	8	DECEMBER14, 2023
9	9	Mr. L
10	10	EE(for himself and Mr. SCOTTof South Carolina) introduced the
11	11	following bill; which was read twice and referred to the Committee on Finance
12	12	A BILL
13	13	To amend the Internal Revenue Code of 1986 to provide
14	14	incentives for education.
15	15	Be it enacted by the Senate and House of Representa-1
16	16	tives of the United States of America in Congress assembled, 2
17	17	SECTION 1. SHORT TITLE. 3
18	18	This Act may be cited as the ‘‘Achieving Choice in 4
19	19	Education Act’’ or the ‘‘ACE Act’’. 5
20	20	SEC. 2. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND AD-6
21	21	DITIONAL ELEMENTARY AND SECONDARY EX-7
22	22	PENSES. 8
23	23	(a) I
24	24	NGENERAL.—Section 529(c)(7) of the Internal 9
25	25	Revenue Code of 1986 is amended to read as follows: 10
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27	27	•S 3520 IS
28	28	‘‘(7) TREATMENT OF ELEMENTARY AND SEC -1
29	29	ONDARY TUITION.—Any reference in this section to 2
30	30	the term ‘qualified higher education expense’ shall 3
31	31	include a reference to the following expenses in con-4
32	32	nection with enrollment or attendance at, or for stu-5
33	33	dents enrolled at or attending, an elementary or sec-6
34	34	ondary public, private, or religious school: 7
35	35	‘‘(A) Tuition. 8
36	36	‘‘(B) Curriculum and curricular materials. 9
37	37	‘‘(C) Books or other instructional mate-10
38	38	rials. 11
39	39	‘‘(D) Online educational materials. 12
40	40	‘‘(E) Tuition for tutoring or educational 13
41	41	classes outside of the home, including at a tu-14
42	42	toring facility, but only if the tutor or instruc-15
43	43	tor is not related to the student and— 16
44	44	‘‘(i) is licensed as a teacher in any 17
45	45	State, 18
46	46	‘‘(ii) has taught at an eligible edu-19
47	47	cational institution, or 20
48	48	‘‘(iii) is a subject matter expert in the 21
49	49	relevant subject. 22
50	50	‘‘(F) Fees for a nationally standardized 23
51	51	norm-referenced achievement test, an advanced 24
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53	53	•S 3520 IS
54	54	placement examination, or any examinations re-1
55	55	lated to college or university admission. 2
56	56	‘‘(G) Fees for dual enrollment in an insti-3
57	57	tution of higher education. 4
58	58	‘‘(H) Educational therapies for students 5
59	59	with disabilities provided by a licensed or ac-6
60	60	credited practitioner or provider, including oc-7
61	61	cupational, behavioral, physical, and speech-lan-8
62	62	guage therapies. 9
63	63	Such term shall include expenses for the purposes 10
64	64	described in subparagraphs (A) through (H) in con-11
65	65	nection with a homeschool (whether treated as a 12
66	66	homeschool or a private school for purposes of appli-13
67	67	cable State law).’’. 14
68	68	(b) E
69	69	FFECTIVEDATE.—The amendment made by 15
70	70	this section shall apply to distributions made after the 16
71	71	date of the enactment of this Act. 17
72	72	SEC. 3. INCREASE IN LIMITATION ON DISTRIBUTIONS 18
73	73	FROM 529 PLANS FOR ELEMENTARY AND SEC-19
74	74	ONDARY SCHOOL EXPENSES. 20
75	75	(a) I
76	76	NGENERAL.—Section 529(e)(3)(A) of the Inter-21
77	77	nal Revenue Code of 1986 is amended by striking 22
78	78	‘‘$10,000’’ in the flush matter at the end and inserting 23
79	79	‘‘$20,000’’. 24
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81	81	•S 3520 IS
82	82	(b) EFFECTIVEDATE.—The amendment made by 1
83	83	this section shall apply to taxable years beginning after 2
84	84	December 31, 2023. 3
85	85	SEC. 4. GIFT TAX EXCLUSIONS. 4
86	86	(a) G
87	87	IFTTAXEXCLUSION FORCONTRIBUTIONS TO 5
88	88	529 P
89	89	LANS.—Section 2503(b) of the Internal Revenue 6
90	90	Code of 1986 is amended by adding at the end the fol-7
91	91	lowing new paragraph: 8
92	92	‘‘(3) E
93	93	XCLUSION FOR CONTRIBUTIONS TO 529 9
94	94	PLANS.—The dollar amount in effect under para-10
95	95	graph (1) with respect to gifts (to which such para-11
96	96	graph applies) made to any person during any cal-12
97	97	endar year shall be increased (not in excess of 13
98	98	$20,000) by the amount of such gifts made during 14
99	99	such calendar year to qualified tuition programs (as 15
100	100	defined in section 529) with respect to which such 16
101	101	person is the designated beneficiary.’’. 17
102	102	(b) E
103	103	FFECTIVEDATE.—The amendments made by 18
104	104	this section shall apply to gifts made after December 31, 19
105	105	2023. 20
106	106	SEC. 5. TAX-EXEMPT BONDS RESTRICTED TO STATES THAT 21
107	107	IMPLEMENT SCHOOL CHOICE LAWS. 22
108	108	(a) I
109	109	NGENERAL.—Section 103 of the Internal Rev-23
110	110	enue Code of 1986 is amended by adding at the end the 24
111	111	following new subsection: 25
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113	113	•S 3520 IS
114	114	‘‘(d) RESTRICTION TO STATESTHATIMPLEMENT 1
115	115	S
116	116	CHOOLCHOICELAWS.— 2
117	117	‘‘(1) I
118	118	N GENERAL.—Subsection (a) shall not 3
119	119	apply to any State or local bond unless such bond 4
120	120	is issued by a minimum school choice State or a po-5
121	121	litical subdivision of such a State. 6
122	122	‘‘(2) P
123	123	ARTIAL EXCLUSION WITH RESPECT TO 7
124	124	CERTAIN STATES.— 8
125	125	‘‘(A) I
126	126	N GENERAL.—In the case of any 9
127	127	State or local bond issued by a minimum school 10
128	128	choice State which does not meet the require-11
129	129	ments of subparagraph (B) (or issued by any 12
130	130	political subdivision of such a State), subsection 13
131	131	(a) shall be applied by substituting ‘50 percent 14
132	132	of the interest’ for ‘interest’. 15
133	133	‘‘(B) R
134	134	EQUIREMENTS.—A minimum school 16
135	135	choice State meets the requirements of this sub-17
136	136	paragraph if the Secretary determines that— 18
137	137	‘‘(i) at least 65 percent of the speci-19
138	138	fied school age children are eligible for one 20
139	139	or more of such State’s school choice pro-21
140	140	grams, and 22
141	141	‘‘(ii) the average amount spent by 23
142	142	such State on the education of each speci-24
143	143	fied school age child eligible for one or 25
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145	145	•S 3520 IS
146	146	more of such State’s school choice pro-1
147	147	grams is at least 75 percent of the average 2
148	148	amount spent by such State on the edu-3
149	149	cation of each specified school age child 4
150	150	not eligible for one or more of such pro-5
151	151	grams. 6
152	152	‘‘(3) M
153	153	INIMUM SCHOOL CHOICE STATE .—For 7
154	154	purposes of this subsection, the term ‘minimum 8
155	155	school choice State’ means any State if the Sec-9
156	156	retary determines that— 10
157	157	‘‘(A) such State has enacted one or more 11
158	158	school choice programs, 12
159	159	‘‘(B) at least 40 percent of the specified 13
160	160	school age children are eligible for one or more 14
161	161	of such State’s school choice programs, and 15
162	162	‘‘(C) the average amount spent by such 16
163	163	State on the education of each specified school 17
164	164	age child eligible for one or more of such 18
165	165	State’s school choice programs is at least 60 19
166	166	percent of the average amount spent by such 20
167	167	State on the education of each specified school 21
168	168	age child not eligible for one or more of such 22
169	169	programs. 23
170	170	‘‘(4) S
171	171	CHOOL CHOICE PROGRAMS .—For pur-24
172	172	poses of this subsection, the term ‘school choice pro-25
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174	174	•S 3520 IS
175	175	gram’ means, with respect to any State, each of the 1
176	176	following with respect to elementary and secondary 2
177	177	education in such State: 3
178	178	‘‘(A) Tax credit scholarship programs. 4
179	179	‘‘(B) Voucher programs. 5
180	180	‘‘(C) Education savings account program. 6
181	181	‘‘(D) Refundable tax credit for private edu-7
182	182	cation expenses. 8
183	183	‘‘(5) S
184	184	PECIFIED SCHOOL AGE CHILD .—For pur-9
185	185	poses of this subsection, the term ‘specified school 10
186	186	age child’ means, with respect to any State, any in-11
187	187	dividual residing in such State who has not attained 12
188	188	age 18.’’. 13
189	189	(b) E
190	190	FFECTIVEDATE.—The amendment made by 14
191	191	this section shall apply to bonds issued after the date of 15
192	192	the enactment of this Act. 16
193	193	Æ
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