HF798 Summary

• Increases K-12 education expense subtraction limits from $1,625 to $2,500 for kindergarten through grade 6 and from $2,500 to $3,750 for grades 7-12

• Raises maximum education credit from $1,000 to $1,500 per qualifying child and increases income phaseout threshold from $33,500 to $47,500

• Extends education credit to cover tuition expenses at elementary and secondary schools, in addition to textbooks and transportation

• Implements automatic inflation adjustments for both the subtraction and credit amounts using the Internal Revenue Code methodology, with adjustments beginning in 2016

• All changes effective for taxable years beginning after December 31, 2014