Sec. 105. Tax credit for providing programs for students that promote economic and financial literacy

1,017 words·~5 min read·/bill/115/hr/3839/ih/section-105

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Subpart D of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to business-related credits), as amended by this Act, is amended by adding at the end the following new section: In the case of an eligible for profit organization, for purposes of section 38, the excellence in economic education credit determined under this section for a taxable year is 50 percent of the amount paid or incurred during the taxable year to carry out the purposes specified in section 5533(b) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7267b(b) ) (as such section was in effect on the day before the date of enactment of the Every Student Succeeds Act) pursuant to a qualified program.

The excellence in economic education credit determined under this section for a taxable year may be allowed to not more than 20 for profit organizations in accordance with paragraph (2). The Secretary (in consultation with the Secretary of Education) shall determine which for profit organizations are allowed the credit under this section for a taxable year in such manner as the Secretary determines appropriate. In carrying out subparagraph (A), the majority of the taxpayers allowed a credit under paragraph

(1)for a taxable year shall be entities that are— either— a socially and economically disadvantaged small business concern (as defined in section 8(a)(4)(A) of the Small Business Act ( 15 U.S.C. 637(a)(4)(A) )), a small business concern owned and controlled by women (as defined under section 3(n) of such Act ( 15 U.S.C. 632(n) )), or a small business concern (as used in section 3 of such Act ( 15 U.S.C. 632 )) that is at least 51 percent owned by veterans (as defined in section 101(2) of title 38, United States Code), or on the first day of the taxable year do not have more than $60,000,000,000 in assets. In making determinations under this paragraph, the Secretary shall give priority to taxpayers that have qualified programs which serve either urban or rural underserved areas (determined on the basis of the most recent United States census data available). Twenty-five percent of the amount allowed as a credit under subsection

(a)shall be for amounts paid or incurred for direct activities as defined in section 5533(b)(1) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7267b(b)(1) )(as in effect on the day before the date of enactment of the Every Student Succeeds Act). Seventy-five percent of the amount allowed as a credit under subsection

(a)shall be for amounts paid or incurred for subgrants (as defined in section 5533(b)(2) of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7267b(b)(1) ), as in effect on the day before the date of enactment of the Every Student Succeeds Act), determined by treating amounts so paid or incurred as funds made available through a grant. For purposes of this section— The term qualified program means a program in writing under which an eligible for profit organization awards one or more grants for the purpose of carrying out the objectives of promoting economic and financial literacy, as specified in section 5532 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7267a ), that meet the requirements of section 5533 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7267b ), as such sections are in effect on the day before the date of enactment of the Every Student Succeeds Act. The term eligible for profit organization means with respect to a taxable year, an organization that— has a qualified program in effect for the taxable year, and has been determined by the Secretary under subsection (b)(2) to be an organization to whom the credit is allowed for the taxable year. For purposes of paragraph (2)(B), in determining assets, the Secretary shall use the same method used by the Board of Governors of the Federal Reserve System to determine a bank holding company’s consolidated assets under section 165 of the Financial Stability Act of 2010 ( 12 U.S.C. 5365 ). This section shall not apply to a taxpayer for any taxable year if such taxpayer elects to have this section not apply for such taxable year. The amount of any deduction or credit otherwise allowable under this chapter for any amount taken into account for purposes of subsection

(a)shall be reduced by the credit allowed by this section. The Secretary shall issue such regulations or other guidance as may be necessary or appropriate to carry out this section. . Subsection

(b)of section 38 of such Code, as amended by this Act, is amended by striking plus at the end of paragraph (36), by striking the period at the end of paragraph

(37)and inserting , plus , and by adding at the end the following new paragraph: the excellence in economic education credit determined under section 45T(a). . The table of sections for subpart D of part IV of subchapter A of chapter 1 of such Code is amended by adding at the end the following new item: Sec. 45T. Excellence in economic education. . The Secretary of the Treasury (or the Secretary’s delegate) shall submit a report on— whether the credit for excellence in economic education (as enacted by subsection

(a)of this section) has resulted in increased investment in financial literacy programs; and recommendations (if any) for improving such credit to make it more effective. Not later than 5 years after the date of the enactment of this Act, the Secretary of the Treasury (or the Secretary’s delegate) shall submit the report required by paragraph

(1)to the Secretary of Education, the Committee on Education and Workforce, the Committee on Financial Services, and the Committee on Ways and Means of the House of Representatives and the Committee on Health, Education, Labor, and Pensions, the Committee on Banking, Housing, and Urban Affairs, and the Committee on Finance of the Senate. The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Connectionstraces to 3

Traces to 3 documents

U.S. Code

4 references not yet in our index