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[DOCID: f:s1662is.txt]






107th CONGRESS
  1st Session
                                S. 1662

To amend the Internal Revenue Code of 1986 to allow Coverdell education 
        savings accounts to be used for homeschooling expenses.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 8, 2001

Mr. Hutchinson introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to allow Coverdell education 
        savings accounts to be used for homeschooling expenses.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. ALLOWANCE OF COVERDELL EDUCATION SAVINGS ACCOUNTS FOR 
              HOMESCHOOLING EXPENSES.

    (a) In General.--Section 530(b)(4) of the Internal Revenue Code of 
1986 (defining qualified elementary and secondary education expenses) 
is amended by adding at the end the following new subparagraph:
                    ``(C) Special rule for homeschooling.--Such term 
                shall include expenses described in clause (i) or (iii) 
                of subparagraph (A) in connection with education 
                provided by homeschooling if the requirements of any 
                applicable State or local law are met with respect to 
                such education.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after December 31, 2001.
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