H.R. 10029: Supporting Students and Families Act

This bill would create a new federal tax credit for parents or other taxpayers who pay for elementary or secondary school supplies for a dependent student.

What the credit would cover

The credit would apply to money spent on books, supplies, and other equipment that are paid for in connection with a dependent’s attendance at an elementary or secondary school, including public, private, and religious schools.

How much the credit would be

The credit would be worth up to $200 per tax year for eligible expenses.

Income limits

The credit would phase out for higher-income taxpayers. It would begin to be reduced when a taxpayer’s modified adjusted gross income is above $150,000, and it would be reduced by a formula based on how much income exceeds that amount.

Other rules

• The credit would apply only if the taxpayer is claiming the dependent under the normal tax dependency rules.
• Taxpayers could not use the same expenses both for this new credit and for certain Coverdell education savings account benefits.

When it would take effect

The bill would apply to taxable years beginning after December 31, 2026.

Relevant Companies

None found