119-hr750

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 750 Introduced in House

    (IH) ]

<DOC>

119th CONGRESS
 1st Session
 H. R. 750

 To amend the Internal Revenue Code of 1986 to provide incentives for 
 education.

_______________________________________________________________________

 IN THE HOUSE OF REPRESENTATIVES

 January 28, 2025

Mr. Burlison (for himself, Mr. Harris of Maryland, Mr. Mann, Mr. Weber 
of Texas, and Mr. Carter of Texas) 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 provide incentives for 
 education.

 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 ``Achieving Choice in Education Act'' 
or the ``ACE Act''.

SEC. 2. 529 ACCOUNT FUNDING FOR HOMESCHOOL AND ADDITIONAL ELEMENTARY 
 AND SECONDARY EXPENSES.

    (a) In General.--

Section 529
            (c) (7) of the Internal Revenue Code of 
1986 is amended to read as follows:
 ``

    (7) Treatment of elementary and secondary tuition.--Any 
 reference in this section to the term `qualified higher 
 education expense' shall include a reference to the following 
 expenses in connection with enrollment or attendance at, or for 
 students enrolled at or attending, an elementary or secondary 
 public, private, or religious school:
 ``
        (A) Tuition.
 ``
        (B) Curriculum and curricular materials.
 ``
            (C) Books or other instructional materials.
 ``
            (D) Online educational materials.
 ``
        (E) Tuition for tutoring or educational classes 
 outside of the home, including at a tutoring facility, 
 but only if the tutor or instructor is not related to 
 the student and--
 ``
            (i) is licensed as a teacher in any 
 State,
 ``
            (ii) has taught at an eligible 
 educational institution, or
 ``
            (iii) is a subject matter expert in the 
 relevant subject.
 ``
        (F) Fees for a nationally standardized norm-
 referenced achievement test, an advanced placement 
 examination, or any examinations related to college or 
 university admission.
 ``
        (G) Fees for dual enrollment in an institution of 
 higher education.
 ``
        (H) Educational therapies for students with 
 disabilities provided by a licensed or accredited 
 practitioner or provider, including occupational, 
 behavioral, physical, and speech-language therapies.
 Such term shall include expenses for the purposes described in 
 subparagraphs
        (A) through
        (H) in connection with a homeschool 
 (whether treated as a homeschool or a private school for 
 purposes of applicable State law).''.

    (b) Effective Date.--The amendment made by this section shall apply 
to distributions made after the date of the enactment of this Act.

SEC. 3. INCREASE IN LIMITATION ON DISTRIBUTIONS FROM 529 PLANS FOR 
 ELEMENTARY AND SECONDARY SCHOOL EXPENSES.

    (a) In General.--

Section 529

    (e)

    (3)
        (A) of the Internal Revenue Code 
of 1986 is amended by striking ``$10,000'' in the flush matter at the 
end and inserting ``$20,000''.

    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2024.

SEC. 4. GIFT TAX EXCLUSIONS.

    (a) Gift Tax Exclusion for Contributions to 529 Plans.--

Section 2503

    (b) of the Internal Revenue Code of 1986 is amended by adding at 
the end the following new paragraph:
 ``

    (3) Exclusion for contributions to 529 plans.--The dollar 
 amount in effect under paragraph

    (1) with respect to gifts (to 
 which such paragraph applies) made to any person during any 
 calendar year shall be increased (not in excess of $20,000) by 
 the amount of such gifts made during such calendar year to 
 qualified tuition programs (as defined in 

section 529) with 
 respect to which such person is the designated beneficiary.''.

    (b) Effective Date.--The amendments made by this section shall 
apply to gifts made after December 31, 2024.

SEC. 5. TAX-EXEMPT BONDS RESTRICTED TO STATES THAT IMPLEMENT SCHOOL 
 CHOICE LAWS.

    (a) In General.--

Section 103 of the Internal Revenue Code of 1986 
is amended by adding at the end the following new subsection:
 ``
            (d) Restriction to States That Implement School Choice Laws.--
 ``

    (1) In general.--Subsection

    (a) shall not apply to any 
 State or local bond unless such bond is issued by a minimum 
 school choice State or a political subdivision of such a State.
 ``

    (2) Partial exclusion with respect to certain states.--
 ``
        (A) In general.--In the case of any State or 
 local bond issued by a minimum school choice State 
 which does not meet the requirements of subparagraph
        (B) (or issued by any political subdivision of such a 
 State), subsection

    (a) shall be applied by substituting 
 `50 percent of the interest' for `interest'.
 ``
        (B) Requirements.--A minimum school choice State 
 meets the requirements of this subparagraph if the 
 Secretary determines that--
 ``
            (i) at least 65 percent of the specified 
 school age children are eligible for one or 
 more of such State's school choice programs, 
 and
 ``
            (ii) the average amount spent by such 
 State on the education of each specified school 
 age child eligible for one or more such State's 
 school choice programs is at least 75 percent 
 of the average amount spent by such State on 
 the education of each specified school age 
 child not eligible for one or more of such 
 programs.
 ``

    (3) Minimum school choice state.--For purposes of this 
 subsection, the term `minimum school choice State' means any 
 State if the Secretary determines that--
 ``
        (A) such State has enacted one or more school 
 choice programs,
 ``
        (B) at least 40 percent of the specified school 
 age children are eligible for one or more of such 
 State's school choice programs, and
 ``
            (C) the average amount spent by such State on the 
 education of each specified school age child eligible 
 for one or more such State's school choice programs is 
 at least 60 percent of the average amount spent by such 
 State on the education of each specified school age 
 child not eligible for one or more of such programs.
 ``

    (4) School choice programs.--For purposes of this 
 subsection, the term `school choice program' means, with 
 respect to any State, each of the following with respect to 
 elementary and secondary education in such State:
 ``
        (A) Tax credit scholarship programs.
 ``
        (B) Voucher programs.
 ``
            (C) Education savings account program.
 ``
            (D) Refundable tax credit for private education 
 expenses.
 ``

    (5) Specified school age child.--For purposes of this 
 subsection, the term `specified school age child' means, with 
 respect to any State, any individual residing in such State who 
 has not attained age 18.''.

    (b) Effective Date.--The amendment made by this section shall apply 
to bonds issued after the date of the enactment of this Act.
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