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Statute (enacted law)

26 U.S.C. §530(b)(3) — Definition of Qualified Elementary and Secondary Education Expenses

The expense list referenced by §25F: tuition, fees, tutoring, special-needs services, books, supplies, room and board, uniforms, transportation, computer technology, and supplementary services at K-12 schools.

26 U.S.C. §530(b)(3) · referenced by §25F(c)(4)

Qualified Elementary and Secondary Education Expenses

§25F(c)(4) defines “qualified elementary or secondary education expense” by reference to this Coverdell statute. The list below is therefore the federal definition of expenses ECCA / FSTC scholarships can fund.

(3)Qualified elementary and secondary education expenses

(A)In general

The term “qualified elementary and secondary education expenses” means—

(i)expenses for tuition, fees, academic tutoring, special needs services in the case of a special needs beneficiary, books, supplies, and other equipment which are incurred in connection with the enrollment or attendance of the designated beneficiary of the trust as an elementary or secondary school student at a public, private, or religious school,

(ii)expenses for room and board, uniforms, transportation, and supplementary items and services (including extended day programs) which are required or provided by a public, private, or religious school in connection with such enrollment or attendance, and

(iii)expenses for the purchase of any computer technology or equipment or Internet access and related services, if such technology, equipment, or services are to be used by the beneficiary and the beneficiary’s family during any of the years the beneficiary is in school.

Clause (iii) shall not include expenses for computer software designed for sports, games, or hobbies unless the software is predominantly educational in nature.

(B)School

The term “school” means any school which provides elementary education or secondary education (kindergarten through grade 12), as determined under State law.

(C)Computer technology or equipment

The term “computer technology or equipment” means computer software (as defined by section 197(e)(3)(B)), computer or peripheral equipment (as defined by section 168(i)(2)(B)), and fiber optic cable related to computer use.
Citation
26 U.S.C. §530(b)(3) (Coverdell ESA expense definition)

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