Higher Education Funding Act of 1979

Title I: Credit for Tuition Paid for the Elementary or Secondary Education of Dependents - Amends the Internal Revenue Code to allow an income tax credit for the elementary or secondary school tuition of the dependents of a taxpayer at a private nonprofit school. Limits such credit to the lesser of 50 percent of tuition cost or $200. Reduces the amount of such credit by $1 for each full $20 by which the adjusted gross income of the taxpayer exceeds $18,000.

Defines "tuition" as any amount required for the enrollment or attendance of a student at a private nonprofit elementary or secondary school. Excludes from such definition amounts paid for meals, lodging, transportation, supplies, equipment, clothing, or personal family expenses. Defines "private nonprofit elementary or secondary school" as an educational organization which is tax-exempt, offers education at the elementary or secondary level, and attendance at which satisfies the compulsory education laws of the State in which it is located.

Forbids any construction of this Act as granting the Government additional authority to examine the books or activities of any church school except to the extent necessary to determine whether such school is an elementary or secondary school.

Grants standing in the United States District Court for the District of Columbia to any taxpayer to petition for injunctive or declaratory relief with respect to the constitutionality of any provision of this Act. Requires the expedited consideration of any such case.

Title II: Credit for Expenses Paid for the Higher Education of Individuals - Amends the Internal Revenue Code to allow an income tax credit for the higher education expenses of the taxpayer or any other individual. Limits such credit to 100 percent of expenses under $200, 25 percent of expenses between $200 and $500, and five percent of expenses between $500 and $1,500. Reduces the amount of such credit by one percent of the amount by which the adjusted gross income of the taxpayer exceeds $18,000.

Defines "expenses of higher education" as tuition and fees required for the attendance of a student at an institution of higher education and fees, books, supplies, and equipment required for coursework. Excludes from such definition amounts paid for meals, lodging, or similar personal expenses. Defines "institution of higher education" as an educational organization which is tax-exempt and offers education above the twelfth-grade level, or which is an accredited business, trade, or vocational school.

Title III: Deduction for Contributions to Qualified Higher Education Funds - Higher Education Funding Act of 1979 - Amends the Internal Revenue Code to allow an income tax deduction for contributions to a qualified higher education fund established by the taxpayer to fund the higher education of his dependents. Limits the amount of the deduction to the lesser of: (1) $500 times the number of qualified beneficiaries; (2) ten percent of the taxpayer's adjusted gross income; or (3) $2,500.

Provides that a qualified education fund must be established by the taxpayer pursuant to a written plan: (1) which is designed to defray the cost of room, board, and tuition of one or more eligible beneficiaries of the fund at an institution of higher education; (2) which provides that no distribution shall be made by the fund (except upon termination) other than to, or on behalf of, eligible beneficiaries; (3) which provides that upon termination of the fund all assets of the fund shall be distributed to the taxpayer or his estate; (4) which prohibits contributions to the fund in excess of amounts deductible; and (5) under which the taxpayer includes in gross income certain amounts attributable to the fund upon termination of such fund.