,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #chj  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,janu>y #bc1 #bjac    
,mr4 ,fattah introduc$ ! foll[+ bill2   
:i* 0 ref]r$ to ! ,committee on ,ways & 
,means  ,a ,,bill  ,to am5d ! ,int]nal  
,rev5ue ,code ( #aihf to all[ a cr$it   
aga9/ income tax = contributions to a   
tru/ us$ to provide ne$-bas$ college    
s*ol>%ips4  #a4 ,%ort title ,?is ,act   
may be cit$ z ! ,communities ,committ$  
to ,college ,tax ,cr$it ,act ( #bjac4   
#b4 ,cr$it = contributions to a tru/ us$
 to provide ne$-bas$ college s*ol>%ips  
7a7 ,9 g5]al ,subp>t ,b ( "p ,,iv (     
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf 7relat+ to o!r    
cr$its7 is am5d$ by add+ at ! end !     
foll[+ new section3  #cj;,e4            
,contributions to tru/ us$ to provide   
ne$-bas$ college s*ol>%ips  7a7         
,all[ance ( cr$it ,9 addition to any    
d$uction all[able "u ?is title1 !re %all
 be all[$ z a cr$it aga9/ ! tax impos$  
by ?is *apt] = ! taxable ye> an am\nt   

equal to #ej p]c5t ( designat$ qualifi$ 
college s*ol>%ip fund+ contributions    
made by ! taxpay] dur+ ! taxable ye>4   
7b7 ,designat$ qualifi$ college s*ol>%ip
 fund+ contribution ,= purposes ( ?is   
section--  7#a7 ,9 g5]al ,! t]m         
designat$ qualifi$ college s*ol>%ip     
fund+ contribution means any *>itable   
contribution 7z def9$ 9 section         
#agj7;c77--  7,a7 :i* is paid 9 ca% by !
 taxpay] to a qualifi$ s*ol>%ip fund+   
tru/1 &  7,b7 :i* is designat$ by ! tru/
 = purposes ( ?is section4  7#b7        
,qualifi$ s*ol>%ip fund+ tru/ ,! t]m    
qualifi$ s*ol>%ip fund+ tru/ means a    
tru/--  7,a7 :i* is e/abli%$ & ma9ta9$ 9
 ! ,unit$ ,/ates by an organization--   
7i7 describ$ 9 section #eja7;c77#c7 &   
exempt f tax "u section #eja7;a71 &     
7ii7 organiz$ prim>ily = educational    
purposes1  7,b7 :i* is "p ( a plan ( "o 
or m local education ag5cies 7z def9$ 9 
section #iaja ( ! ,elem5t>y & ,second>y 
,education ,act ( #aife7 ( ! ,/ate 9 :i*
 su* tru/ is e/abli%$ & ma9ta9$ to      

provide s*ol>%ips to *ildr5 ( su*       
ag5cies1 &  7,c7 ! writt5 gov]n+        
in/rum5t ( :i*--  7i7 requires t !      
income ( ! tru/ be us$ exclusively to   
provide qualifi$ s*ol>%ips 7z def9$ 9   
section #aag7;b77 to individuals :o--   
7,i7 are c&idates = a degree at an      
in/itution ( high] education 7)9 ! mean+
 giv5 su* t]m by section #aja ( ! ,high]
 ,education ,act ( #aife 7#bj ,u4,s4,c4 
#ajja771 &  7,,ii7 h demon/rat$ f9ancial
 ne$ 9 accordance ) section #dga ( su*  
,act 7#bj ,u4,s4,c4 #ajhgkk71 &  7ii7   
requires t ! assets ( ! tru/ n be       
di/ribut$ = any purpose4  7c7           
,limitations  7#a7 ,9 g5]al ,!re is a   
national qualifi$ college s*ol>%ip fund+
 contribution limitation (              
#a1jjj1jjj1jjj4  7#b7 ,allocation (     
limitation  7,a7 ,9 g5]al ,su* national 
limitation %all be allocat$ by !        
,secret>y among ! qualifi$ s*ol>%ip     
fund+ tru/s :i* h regi/]$ ) ! ,secret>y 
on or be=e ! #ahj? day aft] ! date ( !  
enactm5t ( ?is section4 ,ea* tru/'s %>e 

( su* national limitation %all be !     
am\nt :i* be>s ! same ratio to su*      
limitation z ! numb] ( s*ool age *ildr5 
( su* tru/'s sponsor+ ag5cies be>s to ! 
aggregate numb] ( s*ool age *ildr5 ( !  
sponsor+ ag5cies ( all tru/s :i* h s    
regi/]$ ) ! ,secret>y4  7,b7 ,s*ool age 
*ildr5 ( sponsor+ ag5cies ,= purposes ( 
subp>agraph 7,a71 ! numb] ( s*ool age   
*ildr5 ( a tru/'s sponsor+ ag5cies is ! 
numb] ( *ildr5 ( ! local education      
ag5cies ref]r$ to 9 subsection          
7b77#b77;,b7 :o h atta9$ age #e b n age 
#ah = ! mo/ rec5t fiscal ye> end+ be=e !
 date ! allocations "u ?is p>agraph are 
made4  7#c7 ,designation subject to     
allocat$ limitation am\nt ,! am\nt (    
contributions made to a qualifi$        
s*ol>%ip fund+ tru/ :i* may be designat$
 by su* tru/ = purposes ( ?is section   
%all n exce$ ! limitation am\nt allocat$
 to su* tru/ "u p>agraph 7#b74  7#d7    
,maximum allocation p] tru/ ,! maximum  
qualifi$ college s*ol>%ip fund+         
contribution limitation :i* may be      

allocat$ to ea* tru/ is #bjj1jjj1jjj4   
,an am\nt :i* may n be allocat$ to a    
tru/ by reason ( ! prec$+ s5t5ce %all be
 allocat$ z provid$ 9 p>agraph 7#b7     
among regi/]$ qualifi$ s*ol>%ip fund+   
tru/s ^: allocat$ limitation 7)\t reg>d 
to ?is s5t5ce7 does n exce$             
#bjj1jjj1jjj4  7d7 ,application ) o!r   
cr$its  7#a7 ,bus9ess cr$it treat$ z "p 
( g5]al bus9ess cr$it ,s mu* ( ! cr$it  
:i* w\ld be all[$ "u subsection 7a7 =   
any taxable ye> 7det]m9$ )\t reg>d to   
?is subsection7 to a taxpay] engag$ 9 a 
trade or bus9ess %all be treat$ z a     
cr$it li/$ 9 section #ch7;b7 = su*      
taxable ye> 7& n all[$ "u subsection    
7a774  7#b7 ,p]sonal cr$it  7,a7 ,9     
g5]al ,= purposes ( ?is title1 ! cr$it  
all[$ "u subsection 7a7 = any taxable   
ye> 7det]m9$ aft] application ( p>agraph
 7#a77 %all be treat$ z a cr$it all[able
 "u subp>t ,a = su* taxable ye>4  7,b7  
,limitation bas$ on am\nt ( tax ,9 !    
case ( a taxable ye> to :i* section     
#bf7;a77#b7 does n apply1 ! cr$it all[$ 

"u subsection 7a7 = any taxable ye>     
7det]m9$ aft] application ( p>agraph    
7#a77 %all n exce$ ! excess (--  7i7 !  
sum ( ! regul> tax liability 7z def9$ 9 
section #bf7;b77 plus ! tax impos$ by   
section #ee1 ov]  7ii7 ! sum ( ! cr$its 
all[able "u subp>t ,a 7o!r ?an ?is      
section & sections #bc & #be;,d7 &      
section #bg = ! taxable ye>4  7e7       
,application ( section ,?is section %all
 apply only to contributions made dur+ !
 #c-ye> p]iod beg9n+ on ! #ahj? day aft]
 ! date ( ! enactm5t ( ?is section4  4  
7b7 ,con=m+ am5dm5ts  7#a7 ,section     
#bc7;b77#d77;,b7 ( su* ,code is am5d$ by
 ins]t+ & #cj;,e aft] 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 &     
#adjj;,c7d77#b7 ( su* ,code are ea*     
am5d$ by /rik+ & #cj;,d & ins]t+ #cj;,d1
 & #cj;,e4  7#c7 ,section               
#be7;e77#a77;,c77ii7 ( su* ,code is     
am5d$ by ins]t+ #cj;,e1 aft] #cj;,d14   

7#d7 ,section #cj;,d7c77#b77;,b77ii7 (  
su* ,code is am5d$ by /rik+ & #be;,d &  
ins]t+ 1 #be;,d1 & #cj;,e4  7#e7        
,section #ch7;b7 ( su* ,code is am5d$ by
 /rik+ plus at ! end ( p>agraph 7#ce71  
by /rik+ ! p]iod at ! end ( p>agraph    
7#cf7 & ins]t+ 1 plus1 & by add+ at !   
end ! foll[+ new p>agraph3  7#cg7 !     
portion ( ! cr$it to :i* section        
#cj;,e7d77#a7 applies4  4  7#f7 ,! table
 ( sections = subp>t ,b ( "p ,,iv (     
sub*apt] ,a ( *apt] #a ( su* ,code is   
am5d$ by add+ at ! end ! foll[+ new     
item3  ,sec4 #cj;,e4 ,contributions to  
tru/ us$ to provide ne$-bas$ college    
s*ol>%ips4  4  7c7 ,effective date ,!   
am5dm5ts made by ?is section %all apply 
to contributions made on or aft] ! #ahj?
 day aft] ! date ( ! enactm5t ( ?is ,act
 9 taxable ye>s end+ aft] su* date4