text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Communities Committed to College Tax 
  Credit Act of 2008''.
  
  SEC. 2. CREDIT FOR CONTRIBUTIONS TO A TRUST USED TO PROVIDE NEED-BASED 
                COLLEGE SCHOLARSHIPS.
  
      (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
  of the Internal Revenue Code of 1986 (relating to other credits) is 
  amended by adding at the end the following new section:
  
  ``SEC. 30D. CONTRIBUTIONS TO TRUST USED TO PROVIDE NEED-BASED COLLEGE 
                SCHOLARSHIPS.
  
      ``(a) Allowance of Credit.--In addition to any deduction allowable 
  under this title, there shall be allowed as a credit against the tax 
  imposed by this chapter for the taxable year an amount equal to 50 
  percent of designated qualified college scholarship funding 
  contributions made by the taxpayer during the taxable year.
      ``(b) Designated Qualified College Scholarship Funding 
  Contribution.--For purposes of this section--
              ``(1) In general.--The term `designated qualified college 
          scholarship funding contribution' means any charitable 
          contribution (as defined in section 170(c))--
                      ``(A) which is paid in cash by the taxpayer to a 
                  qualified scholarship funding trust, and
                      ``(B) which is designated by the trust for purposes 
                  of this section.
              ``(2) Qualified scholarship funding trust.--The term 
          `qualified scholarship funding trust' means a trust--
                      ``(A) which is established and maintained in the 
                  United States by an organization--
                              ``(i) described in section 501(c)(3) and 
                          exempt from tax under section 501(a), and
                              ``(ii) organized primarily for educational 
                          purposes,
                      ``(B) which is part of a plan of one or more local 
                  education agencies (as defined in section 9101 of the 
                  Elementary and Secondary Education Act of 1965) of the 
                  State in which such trust is established and maintained 
                  to provide scholarships to children of such agencies, 
                  and
                      ``(C) the written governing instrument of which--
                              ``(i) requires that the income of the trust 
                          be used exclusively to provide qualified 
                          scholarships (as defined in section 117(b)) to 
                          individuals who--
                                      ``(I) are candidates for a degree 
                                  at an institution of higher education 
                                  (within the meaning given such term by 
                                  section 101 of the Higher Education Act 
                                  of 1965 (20 U.S.C. 1001)), and
                                      ``(II) have demonstrated financial 
                                  need in accordance with section 471 of 
                                  such Act (20 U.S.C. 1087kk), and
                              ``(ii) requires that the assets of the 
                          trust not be distributed for any purpose.
      ``(c) Limitations.--
              ``(1) In general.--There is a national qualified college 
          scholarship funding contribution limitation of $1,000,000,000.
              ``(2) Allocation of limitation.--
                      ``(A) In general.--Such national limitation shall 
                  be allocated by the Secretary among the qualified 
                  scholarship funding trusts which have registered with 
                  the Secretary on or before the 180th day after the date 
                  of the enactment of this section. Each trust's share of 
                  such national limitation shall be the amount which 
                  bears the same ratio to such limitation as the number 
                  of school age children of such trust's sponsoring 
                  agencies bears to the aggregate number of school age 
                  children of the sponsoring agencies of all trusts which 
                  have so registered with the Secretary.
                      ``(B) School age children of sponsoring agencies.--
                  For purposes of subparagraph (A), the number of school 
                  age children of a trust's sponsoring agencies is the 
                  number of children of the local education agencies 
                  referred to in subsection (b)(2)(B) who have attained 
                  age 5 but not age 18 for the most recent fiscal year 
                  ending before the date the allocations under this 
                  paragraph are made.
              ``(3) Designation subject to allocated limitation amount.--
          The amount of contributions made to a qualified scholarship 
          funding trust which may be designated by such trust for 
          purposes of this section shall not exceed the limitation amount 
          allocated to such trust under paragraph (2).
              ``(4) Maximum allocation per trust.--The maximum qualified 
          college scholarship funding contribution limitation which may 
          be allocated to each trust is $200,000,000. An amount which may 
          not be allocated to a trust by reason of the preceding sentence 
          shall be allocated as provided in paragraph (2) among 
          registered qualified scholarship funding trusts whose allocated 
          limitation (without regard to this sentence) does not exceed 
          $200,000,000.
      ``(d) Application With Other Credits.--The credit allowed under 
  subsection (a) for any taxable year shall not exceed the excess (if 
  any) of--
              ``(1) the regular tax liability (as defined in section 
          26(b)) reduced by the sum of the credits allowable under 
          subpart A and sections 27, 30, 30B, and 30C, over
              ``(2) the tentative minimum tax for the taxable year.
      ``(e) Application of Section.--This section shall apply only to 
  contributions made during the 3-year period beginning on the 180th day 
  after the date of the enactment of this section.''.
      (b) Clerical Amendment.--The table of sections for subpart B of 
  part IV of subchapter A of chapter 1 of such Code is amended by adding 
  at the end the following new item:
  
  ``Sec. 30D. Contributions to trust used to provide need-based college 
                              scholarships.''.
      (c) Effective Date.--The amendments made by this section shall 
  apply to contributions made on or after the 180th day after the date of 
  the enactment of this Act in taxable years ending after such date.
target: Communities Committed to College Tax Credit Act of 2008 - Amends the Internal Revenue Code to allow a tax credit for 50% of any contribution to a tax-exempt scholarship funding trust established to provide scholarships for individuals with demonstrated financial need to attend institutions of higher education.
feat_title: To amend the Internal Revenue Code of 1986 to allow a credit against income tax for contributions to a trust used to provide need-based college scholarships.