,i #aacth ,,congress #ast ,session ,h4 ,r4 #chj ,,in ,,the ,,house ,,of ,,representatives ,january #bc1 #bjac ,mr4 ,fattah introduced the following bill2 which was referred to the ,committee on ,ways and ,means ,a ,,bill ,to amend the ,internal ,revenue ,code of #aihf to allow a credit against income tax for contributions to a trust used to provide need-based college scholarships4 #a4 ,short title ,this ,act may be cited as the ,communities ,committed to ,college ,tax ,credit ,act of #bjac4 #b4 ,credit for contributions to a trust used to provide need-based college scholarships 7a7 ,in general ,subpart ,b of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf 7relating to other credits7 is amended by adding at the end the following new section3 #cj;,e4 ,contributions to trust used to provide need-based college scholarships 7a7 ,allowance of credit ,in addition to any deduction allowable under this title1 there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to #ej percent of designated qualified college scholarship funding contributions made by the taxpayer during the taxable year4 7b7 ,designated qualified college scholarship funding contribution ,for purposes of this section-- 7#a7 ,in general ,the term designated qualified college scholarship funding contribution means any charitable contribution 7as defined in section #agj7;c77-- 7,a7 which is paid in cash by the taxpayer to a qualified scholarship funding trust1 and 7,b7 which is designated by the trust for purposes of this section4 7#b7 ,qualified scholarship funding trust ,the term qualified scholarship funding trust means a trust-- 7,a7 which is established and maintained in the ,united ,states by an organization-- 7i7 described in section #eja7;c77#c7 and exempt from tax under section #eja7;a71 and 7ii7 organized primarily for educational purposes1 7,b7 which is part of a plan of one or more local education agencies 7as defined in section #iaja of the ,elementary and ,secondary ,education ,act of #aife7 of the ,state in which such trust is established and maintained to provide scholarships to children of such agencies1 and 7,c7 the written governing instrument of which-- 7i7 requires that the income of the trust be used exclusively to provide qualified scholarships 7as defined in section #aag7;b77 to individuals who-- 7,i7 are candidates for a degree at an institution of higher education 7within the meaning given such term by section #aja of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajja771 and 7,,ii7 have demonstrated financial need in accordance with section #dga of such ,act 7#bj ,u4,s4,c4 #ajhgkk71 and 7ii7 requires that the assets of the trust not be distributed for any purpose4 7c7 ,limitations 7#a7 ,in general ,there is a national qualified college scholarship funding contribution limitation of #a1jjj1jjj1jjj4 7#b7 ,allocation of limitation 7,a7 ,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 #ahjth day after the date of the enactment of this section4 ,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 ,secretary4 7,b7 ,school age children of sponsoring agencies ,for purposes of subparagraph 7,a71 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 7b77#b77;,b7 who have attained age #e but not age #ah for the most recent fiscal year ending before the date the allocations under this paragraph are made4 7#c7 ,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 7#b74 7#d7 ,maximum allocation per trust ,the maximum qualified college scholarship funding contribution limitation which may be allocated to each trust is #bjj1jjj1jjj4 ,an amount which may not be allocated to a trust by reason of the preceding sentence shall be allocated as provided in paragraph 7#b7 among registered qualified scholarship funding trusts whose allocated limitation 7without regard to this sentence7 does not exceed #bjj1jjj1jjj4 7d7 ,application with other credits 7#a7 ,business credit treated as part of general business credit ,so much of the credit which would be allowed under subsection 7a7 for any taxable year 7determined without regard to this subsection7 to a taxpayer engaged in a trade or business shall be treated as a credit listed in section #ch7;b7 for such taxable year 7and not allowed under subsection 7a774 7#b7 ,personal credit 7,a7 ,in general ,for purposes of this title1 the credit allowed under subsection 7a7 for any taxable year 7determined after application of paragraph 7#a77 shall be treated as a credit allowable under subpart ,a for such taxable year4 7,b7 ,limitation based on amount of tax ,in the case of a taxable year to which section #bf7;a77#b7 does not apply1 the credit allowed under subsection 7a7 for any taxable year 7determined after application of paragraph 7#a77 shall not exceed the excess of-- 7i7 the sum of the regular tax liability 7as defined in section #bf7;b77 plus the tax imposed by section #ee1 over 7ii7 the sum of the credits allowable under subpart ,a 7other than this section and sections #bc and #be;,d7 and section #bg for the taxable year4 7e7 ,application of section ,this section shall apply only to contributions made during the #c-year period beginning on the #ahjth day after the date of the enactment of this section4 4 7b7 ,conforming amendments 7#a7 ,section #bc7;b77#d77;,b7 of such ,code is amended by inserting and #cj;,e after section #be;,d4 7#b7 ,sections #bd7;b77#c77;,b71 #be;,a7i77#e77;,b71 #be;,b7g77#b71 #bf7;a77#a71 #cj7;c77#b77;,b77ii71 #cj;,b7g77#b77;,b77ii71 #ijd7;i71 and #adjj;,c7d77#b7 of such ,code are each amended by striking and #cj;,d and inserting #cj;,d1 and #cj;,e4 7#c7 ,section #be7;e77#a77;,c77ii7 of such ,code is amended by inserting #cj;,e1 after #cj;,d14 7#d7 ,section #cj;,d7c77#b77;,b77ii7 of such ,code is amended by striking and #be;,d and inserting 1 #be;,d1 and #cj;,e4 7#e7 ,section #ch7;b7 of such ,code is amended by striking plus at the end of paragraph 7#ce71 by striking the period at the end of paragraph 7#cf7 and inserting 1 plus1 and by adding at the end the following new paragraph3 7#cg7 the portion of the credit to which section #cj;,e7d77#a7 applies4 4 7#f7 ,the table of sections for subpart ,b of part ,,iv of subchapter ,a of chapter #a of such ,code is amended by adding at the end the following new item3 ,sec4 #cj;,e4 ,contributions to trust used to provide need-based college scholarships4 4 7c7 ,effective date ,the amendments made by this section shall apply to contributions made on or after the #ahjth day after the date of the enactment of this ,act in taxable years ending after such date4