# What This Bill Does

This bill creates a new tax credit that would let parents deduct money they spend on school supplies for their kids. If you buy notebooks, pencils, calculators, textbooks, or other supplies your child needs for elementary or secondary school, you could get some of that money back when you file your taxes.

Here's how it would work in practice: Let's say you spend $250 on school supplies during the year. You'd be able to claim up to $200 as a credit against your taxes, which means you'd owe $200 less in federal income tax. The credit applies to supplies for kids attending public, private, or religious schools. However, there's an income limit built in—if you make more than $150,000 per year (adjusted for inflation and certain income exclusions), the credit starts to shrink. Once your income hits $215,000, the credit disappears entirely.

One important thing to know: this is a "nonrefundable" credit, which means it can only reduce the taxes you owe. If the credit is bigger than what you owe in taxes, you don't get the extra money back. Also, you can't use this credit for the same expenses you've already paid for using a Coverdell education savings account, which is another tax-advantaged savings program for education.

The bill would take effect for the 2024 tax year if it becomes law, so families could start claiming this credit when they file their 2024 taxes in 2025.

To amend the Internal Revenue Code of 1986 to allow a nonrefundable credit for elementary and secondary school supply expenses.

Lawler, Michael

This bill allows a nonrefundable income tax credit for eligible elementary and secondary school supply expenses. The allowable amount of such credit may not exceed $200, reduced by certain modified adjusted gross income levels.&nbsp;The bill defines eligible elementary and secondary school supply expenses as expenses for books, supplies, and other equpment in connection with the enrollment or attendance of a taxpayer dependent at a public, private, or religious school.&nbsp; &nbsp;