1. Short title This Act may be cited as the Educational Choice for Children Act . 2. Tax credit for contributions to scholarship granting organizations (a) Credit for individuals (1) In general Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 25E the following new section: 25F. Qualified elementary and secondary education scholarships (a) Allowance of credit In the case of an individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the amount of qualified contributions made by the taxpayer during the taxable year. (b) Amount of credit The credit allowed under subsection (a) in any taxable year shall not exceed an amount equal to the greater of— (1) 10 percent of the adjusted gross income of the taxpayer for the taxable year, or (2) $5,000. (c) Definitions For purposes of this section— (1) Eligible student The term eligible student means an individual who— (A) is a member of a household with an income which is not greater than 300 percent of the area median gross income (as such term is used in section 42), and (B) is eligible to enroll in a public elementary or secondary school. (2) Qualified contribution The term qualified contribution means a charitable contribution (as defined by section 170(c)) to a scholarship granting organization in the form of cash or marketable securities. (3) Qualified elementary or secondary education expense The term qualified elementary or secondary education expense means— (A) expenses which would be described in paragraph (3) of section 529(e) (relating to qualified higher education expenses) if such paragraph were applied— (i) by substituting elementary school or secondary school (as such terms are defined in section 8101 of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 7801 )) for eligible educational institution each place it appears, and (ii) by substituting such school for such institution each place it appears in