HR 10029: Supporting Students and Families Act

HR 10029 in plain English: This bill would create a new tax credit for families, capped at $200 per taxable year, that phases out for taxpayers whose modified adjusted gross income exceeds $150,000, with the phase-out range spanning $65,000 above that threshold.

Stated purpose

The bill aims to help families afford elementary and secondary school supplies by creating a federal tax credit of up to $200 for expenses like books, supplies, and equipment paid for a dependent child's schooling.

Key points

• Creates a new tax credit for students or families, limited to $200 per taxable year
• Credit phases out for taxpayers with modified adjusted gross income above $150,000
• Phase-out range spans $65,000, ending eligibility at $215,000 in modified adjusted gross income

Arguments supporters make

• School supplies are a real out-of-pocket cost for millions of families, and a $200 credit gives them direct, immediate relief at tax time.
• The credit applies to public, private, and religious schools equally, so it is broadly available to families regardless of where they choose to send their children.
• The income phase-out ensures the benefit is focused on working- and middle-class families rather than the highest earners.

Arguments opponents make

• A $200 cap may not come close to covering actual supply costs many families face, making the relief too small to meaningfully help those who need it most.
• Families who owe little or no federal income tax — often the lowest-income households — may receive little or no benefit from a non-refundable credit.
• The credit reduces federal tax revenue without a clear offset, adding to the national deficit while providing a relatively modest benefit.

Tradeoffs

The bill delivers a modest financial benefit to a broad range of middle-income families with school-age children, but because the credit is non-refundable and capped at $200, the lowest-income families may see little benefit while the cost is borne by reduced federal revenue.

Current status in Congress: In committee.

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