Us Congress 2025-2026 Regular Session

Us Congress House Bill HB750 Compare Versions

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

Old	New	Differences
1	1	I
2	2	119THCONGRESS
3	3	1
4	4	STSESSION H. R. 750
5	5	To amend the Internal Revenue Code of 1986 to provide incentives for
6	6	education.
7	7	IN THE HOUSE OF REPRESENTATIVES
8	8	JANUARY28, 2025
9	9	Mr. B
10	10	URLISON(for himself, Mr. HARRISof Maryland, Mr. MANN, Mr. WEBER
11	11	of Texas, and Mr. C
12	12	ARTERof Texas) introduced the following bill; which
13	13	was referred to the Committee on Ways and Means
14	14	A BILL
15	15	To amend the Internal Revenue Code of 1986 to provide
16	16	incentives for education.
17	17	Be it enacted by the Senate and House of Representa-1
18	18	tives of the United States of America in Congress assembled, 2
19	19	SECTION 1. SHORT TITLE. 3
20	20	This Act may be cited as the ‘‘Achieving Choice in 4
21	21	Education Act’’ or the ‘‘ACE Act’’. 5
22	22	SEC. 2. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND AD-6
23	23	DITIONAL ELEMENTARY AND SECONDARY EX-7
24	24	PENSES. 8
25	25	(a) I
26	26	NGENERAL.—Section 529(c)(7) of the Internal 9
27	27	Revenue Code of 1986 is amended to read as follows: 10
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31	31	‘‘(7) TREATMENT OF ELEMENTARY AND SEC -1
32	32	ONDARY TUITION.—Any reference in this section to 2
33	33	the term ‘qualified higher education expense’ shall 3
34	34	include a reference to the following expenses in con-4
35	35	nection with enrollment or attendance at, or for stu-5
36	36	dents enrolled at or attending, an elementary or sec-6
37	37	ondary public, private, or religious school: 7
38	38	‘‘(A) Tuition. 8
39	39	‘‘(B) Curriculum and curricular materials. 9
40	40	‘‘(C) Books or other instructional mate-10
41	41	rials. 11
42	42	‘‘(D) Online educational materials. 12
43	43	‘‘(E) Tuition for tutoring or educational 13
44	44	classes outside of the home, including at a tu-14
45	45	toring facility, but only if the tutor or instruc-15
46	46	tor is not related to the student and— 16
47	47	‘‘(i) is licensed as a teacher in any 17
48	48	State, 18
49	49	‘‘(ii) has taught at an eligible edu-19
50	50	cational institution, or 20
51	51	‘‘(iii) is a subject matter expert in the 21
52	52	relevant subject. 22
53	53	‘‘(F) Fees for a nationally standardized 23
54	54	norm-referenced achievement test, an advanced 24
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58	58	placement examination, or any examinations re-1
59	59	lated to college or university admission. 2
60	60	‘‘(G) Fees for dual enrollment in an insti-3
61	61	tution of higher education. 4
62	62	‘‘(H) Educational therapies for students 5
63	63	with disabilities provided by a licensed or ac-6
64	64	credited practitioner or provider, including oc-7
65	65	cupational, behavioral, physical, and speech-lan-8
66	66	guage therapies. 9
67	67	Such term shall include expenses for the purposes 10
68	68	described in subparagraphs (A) through (H) in con-11
69	69	nection with a homeschool (whether treated as a 12
70	70	homeschool or a private school for purposes of appli-13
71	71	cable State law).’’. 14
72	72	(b) E
73	73	FFECTIVEDATE.—The amendment made by 15
74	74	this section shall apply to distributions made after the 16
75	75	date of the enactment of this Act. 17
76	76	SEC. 3. INCREASE IN LIMITATION ON DISTRIBUTIONS 18
77	77	FROM 529 PLANS FOR ELEMENTARY AND SEC-19
78	78	ONDARY SCHOOL EXPENSES. 20
79	79	(a) I
80	80	NGENERAL.—Section 529(e)(3)(A) of the Inter-21
81	81	nal Revenue Code of 1986 is amended by striking 22
82	82	‘‘$10,000’’ in the flush matter at the end and inserting 23
83	83	‘‘$20,000’’. 24
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87	87	(b) EFFECTIVEDATE.—The amendment made by 1
88	88	this section shall apply to taxable years beginning after 2
89	89	December 31, 2024. 3
90	90	SEC. 4. GIFT TAX EXCLUSIONS. 4
91	91	(a) G
92	92	IFTTAXEXCLUSION FORCONTRIBUTIONS TO 5
93	93	529 P
94	94	LANS.—Section 2503(b) of the Internal Revenue 6
95	95	Code of 1986 is amended by adding at the end the fol-7
96	96	lowing new paragraph: 8
97	97	‘‘(3) E
98	98	XCLUSION FOR CONTRIBUTIONS TO 529 9
99	99	PLANS.—The dollar amount in effect under para-10
100	100	graph (1) with respect to gifts (to which such para-11
101	101	graph applies) made to any person during any cal-12
102	102	endar year shall be increased (not in excess of 13
103	103	$20,000) by the amount of such gifts made during 14
104	104	such calendar year to qualified tuition programs (as 15
105	105	defined in section 529) with respect to which such 16
106	106	person is the designated beneficiary.’’. 17
107	107	(b) E
108	108	FFECTIVEDATE.—The amendments made by 18
109	109	this section shall apply to gifts made after December 31, 19
110	110	2024. 20
111	111	SEC. 5. TAX-EXEMPT BONDS RESTRICTED TO STATES THAT 21
112	112	IMPLEMENT SCHOOL CHOICE LAWS. 22
113	113	(a) I
114	114	NGENERAL.—Section 103 of the Internal Rev-23
115	115	enue Code of 1986 is amended by adding at the end the 24
116	116	following new subsection: 25
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120	120	‘‘(d) RESTRICTION TO STATESTHATIMPLEMENT 1
121	121	S
122	122	CHOOLCHOICELAWS.— 2
123	123	‘‘(1) I
124	124	N GENERAL.—Subsection (a) shall not 3
125	125	apply to any State or local bond unless such bond 4
126	126	is issued by a minimum school choice State or a po-5
127	127	litical subdivision of such a State. 6
128	128	‘‘(2) P
129	129	ARTIAL EXCLUSION WITH RESPECT TO 7
130	130	CERTAIN STATES.— 8
131	131	‘‘(A) I
132	132	N GENERAL.—In the case of any 9
133	133	State or local bond issued by a minimum school 10
134	134	choice State which does not meet the require-11
135	135	ments of subparagraph (B) (or issued by any 12
136	136	political subdivision of such a State), subsection 13
137	137	(a) shall be applied by substituting ‘50 percent 14
138	138	of the interest’ for ‘interest’. 15
139	139	‘‘(B) R
140	140	EQUIREMENTS.—A minimum school 16
141	141	choice State meets the requirements of this sub-17
142	142	paragraph if the Secretary determines that— 18
143	143	‘‘(i) at least 65 percent of the speci-19
144	144	fied school age children are eligible for one 20
145	145	or more of such State’s school choice pro-21
146	146	grams, and 22
147	147	‘‘(ii) the average amount spent by 23
148	148	such State on the education of each speci-24
149	149	fied school age child eligible for one or 25
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152	152	•HR 750 IH
153	153	more such State’s school choice programs 1
154	154	is at least 75 percent of the average 2
155	155	amount spent by such State on the edu-3
156	156	cation of each specified school age child 4
157	157	not eligible for one or more of such pro-5
158	158	grams. 6
159	159	‘‘(3) M
160	160	INIMUM SCHOOL CHOICE STATE .—For 7
161	161	purposes of this subsection, the term ‘minimum 8
162	162	school choice State’ means any State if the Sec-9
163	163	retary determines that— 10
164	164	‘‘(A) such State has enacted one or more 11
165	165	school choice programs, 12
166	166	‘‘(B) at least 40 percent of the specified 13
167	167	school age children are eligible for one or more 14
168	168	of such State’s school choice programs, and 15
169	169	‘‘(C) the average amount spent by such 16
170	170	State on the education of each specified school 17
171	171	age child eligible for one or more such State’s 18
172	172	school choice programs is at least 60 percent of 19
173	173	the average amount spent by such State on the 20
174	174	education of each specified school age child not 21
175	175	eligible for one or more of such programs. 22
176	176	‘‘(4) S
177	177	CHOOL CHOICE PROGRAMS .—For pur-23
178	178	poses of this subsection, the term ‘school choice pro-24
179	179	gram’ means, with respect to any State, each of the 25
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183	183	following with respect to elementary and secondary 1
184	184	education in such State: 2
185	185	‘‘(A) Tax credit scholarship programs. 3
186	186	‘‘(B) Voucher programs. 4
187	187	‘‘(C) Education savings account program. 5
188	188	‘‘(D) Refundable tax credit for private edu-6
189	189	cation expenses. 7
190	190	‘‘(5) S
191	191	PECIFIED SCHOOL AGE CHILD .—For pur-8
192	192	poses of this subsection, the term ‘specified school 9
193	193	age child’ means, with respect to any State, any in-10
194	194	dividual residing in such State who has not attained 11
195	195	age 18.’’. 12
196	196	(b) E
197	197	FFECTIVEDATE.—The amendment made by 13
198	198	this section shall apply to bonds issued after the date of 14
199	199	the enactment of this Act. 15
200	200	Æ
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