,i #aacth ,,congress #ast ,session ,h4 ,r4 #bcid ,,in ,,the ,,house ,,of ,,representatives ,june #ag1 #bjac ,mr4 ,garrett 7for himself1 ,mr4 ,bishop of ,utah1 ,mr4 ,southerland1 ,mr4 ,pearce1 ,mr4 ,huelskamp1 ,mr4 ,king of ,iowa1 ,mr4 ,huizenga of ,michigan1 ,mr4 ,mulvaney1 ,mr4 ,la,malfa1 ,mr4 ,pittenger1 ,mr4 ,franks of ,arizona1 ,mr4 ,chabot1 ,mr4 ,posey1 ,mr4 ,gohmert1 ,mrs4 ,blackburn1 ,mr4 ,mullin1 ,mr4 ,campbell1 ,mr4 ,broun of ,georgia1 and ,mr4 ,jones7 introduced the following bill2 which was referred to the ,committee on ,ways and ,means1 and in addition to the ,committee on ,education and the ,workforce1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to allow a ,state to opt out of ,k-#ab education grant programs and the requirements of those programs1 to amend the ,internal ,revenue ,code of #aihf to provide a credit to taxpayers in such a ,state1 and for other purposes4 #a4 ,short title2 table of contents 7a7 ,short title ,this ,act may be cited as the ,local ,education ,authority ,returns ,now ,act4 7b7 ,table of contents ,the table of contents for this ,act is as follows3 ,sec4 #a4 ,short title2 table of contents4 ,title ,i--,ability of ,states to opt out of ,k-#ab education grant programs ,sec4 #aja4 ,determinations by ,secretary of the ,treasury as to which ,states are opt-out ,states4 ,sec4 #ajb4 ,amounts creditable to ,states4 ,sec4 #ajc4 ,opt-out ,states not eligible to receive grants under ,k-#ab education grant programs4 ,sec4 #ajd4 ,requirements of ,k-#ab education grant programs do not apply to opt-out ,states4 ,sec4 #aje4 ,definitions4 ,title ,,ii--,credit to taxpayers in opt-out ,state ,sec4 #bja4 ,refundable opt-out ,state education credit4 ,i ,ability of ,states to opt out of ,k-#ab education grant programs #aja4 ,determinations by ,secretary of the ,treasury as to which ,states are opt-out ,states 7a7 ,deadline ,not later than ,february #a of each calendar year 7hereinafter in this title referred to as the determination year71 the ,secretary of the ,treasury shall determine which ,states1 if any1 are opt-out ,states for the calendar year 7hereinafter in this title referred to as the opt-out year7 that follows the determination year4 7b7 ,determination ,the ,secretary of the ,treasury shall determine that a ,state is an opt-out ,state for an opt-out year under subsection 7a7 if1 and only if1 there is transmitted to the ,secretary a copy of a law1 in effect as of ,january #a of the determination year1 that can fairly be read to mean that the policy of the ,state is to not accept grant funds under the ,k-#ab education grant programs1 and thereby to not be bound by the requirements of those programs1 for that opt-out year4 7c7 ,notification ,upon making a determination under subsection 7a71 the ,secretary of the ,treasury shall transmit that determination to the ,secretary of ,education and to ,congress4 #ajb4 ,amounts creditable to ,states 7a7 ,in general ,for purposes of determinations relating to the refundable opt-out ,state education credit under section #cf;,d of the ,internal ,revenue ,code of #aihf1 as early as practicable for a calendar year1 the ,secretary of ,education shall1 for each ,state1 determine the amount creditable to that ,state for that calendar year and make available that determination4 7b7 ,amount creditable ,the ,secretary shall determine the amount creditable to a ,state for a calendar year as follows3 7#a7 ,if the ,state was not an opt-out ,state for the preceding calendar year1 the amount creditable for the calendar year shall be equal to the aggregate ,k-#ab funding 7as determined under subsection 7d77 for that ,state for that preceding calendar year4 7#b7 ,if the ,state was an opt-out ,state for the preceding calendar year1 the amount creditable for the calendar year shall be equal to-- 7,a7 the extrapolated amount 7as determined under subsection 7c77 for that preceding calendar year1 plus 7,b7 the amount that results when the amount creditable for that preceding calendar year is subtracted from the extrapolated amount 7as determined under subsection 7c77 for that preceding calendar year4 7c7 ,extrapolated amount 7#a7 ,in general ,the ,secretary of ,education shall determine the extrapolated amount for a ,state for a calendar year4 ,the determination shall be based on-- 7,a7 the amount of grant funds that would have been received other than on a competitive basis1 as direct grants1 subgrants1 or otherwise1 under the ,k-#ab education grant programs1 by the ,state or any public educational entity in the ,state for that calendar year1 had it elected not to be an opt-out ,state for that calendar year2 plus 7,b7 the average annual amount of all grant funds that would have been received on a competitive basis1 as direct grants1 subgrants1 or otherwise1 under the ,k-#ab education grant programs1 by the ,state or any public educational entity in the ,state for that calendar year and the four preceding calendar years1 had it elected not to be an opt-out ,state for those calendar years4 7#b7 ,regulations ,the ,secretary shall prescribe regulations for making determinations required by this subsection4 ,the initial regulations shall be prescribed not later than #f months after the date of the enactment of this ,act4 7d7 ,aggregate ,k-#ab funding ,the aggregate ,k-#ab funding for a ,state for a calendar year shall be equal to-- 7#a7 the amount of all grant funds received other than on a competitive basis1 as direct grants1 subgrants1 or otherwise1 under the ,k-#ab education grant programs1 by the ,state or any public educational entity in the ,state for that calendar year2 plus 7#b7 the average annual amount of all grant funds received on a competitive basis1 as direct grants1 subgrants1 or otherwise1 under the ,k-#ab education grant programs1 by the ,state or any public educational entity in the ,state for that calendar year and the four preceding calendar years4 #ajc4 ,opt-out ,states not eligible to receive grants under ,k-#ab education grant programs 7a7 ,in general ,when a ,state is an opt-out ,state for a calendar year1 neither the ,state nor any public educational entity in the ,state is eligible to receive1 as direct grants1 subgrants1 or otherwise1 any funds under any of the ,k-#ab education grant programs for that calendar year4 7b7 ,reallocation ,any funds under a ,k-#ab education grant program that are not allocated to a ,state or public educational entity in the ,state by reason of subsection 7a7 shall be returned to the ,treasury4 #ajd4 ,requirements of ,k-#ab education grant programs do not apply to opt-out ,states ,when a ,state is an opt-out ,state for a calendar year1 neither the ,state nor any public educational entity in the ,state is subject to any statutory or regulatory requirement of a ,k-#ab education grant program for that calendar year4 #aje4 ,definitions ,in this title3 7#a7 ,the term ,k-#ab education grant program means any grant program carried out under any title of the ,elementary and ,secondary ,education ,act of #aife1 except for the following3 7,a7 ,indian1 ,native ,hawaiian1 and ,alaska ,native ,education ,title ,,vii 7#bj ,u4,s4,c4 #gdja et seq474 7,b7 ,impact ,aid ,title ,,viii 7#bj ,u4,s4,c4 #ggja et seq474 7#b7 ,the term public educational entity means1 with respect to a ,state1 the ,state educational agency1 any local educational agency in the ,state1 or any public elementary or secondary school in the ,state4 ,,ii ,credit to taxpayers in opt-out ,state #bja4 ,refundable opt-out ,state education credit 7a7 ,in general ,subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf 7relating to refundable credits7 is amended by inserting after section #cf;,b the following new section3 #cf;,c4 ,opt-out ,state education credit 7a7 ,general rule ,in the case of an eligible individual1 there shall be allowed as a credit against the tax imposed by this chapter for the taxable year the opt-out ,state education amount4 7b7 ,opt-,out ,state education amount ,for purposes of this section-- 7#a7 ,in general ,the term opt-out ,state education amount means1 with respect to a taxpayer for a taxable year beginning in an opt-out year1 the amount equal to-- 7,a7 the amount creditable under section #ajb of the ,local ,education ,authority ,returns ,now ,act to an opt-out ,state 7determined under section #aja of such ,act71 multiplied by-- 7,b7 a fraction-- 7i7 the numerator of which is the taxpayer's household tax burden from such ,state for the opt-out year1 and 7ii7 the denominator of which is the total tax revenue of such ,state for the opt-out year4 7#b7 ,household tax burden ,the household tax burden from a ,state for an opt-out year is the sum of-- 7,a7 the ,state real property taxes1 7,b7 the ,state personal property taxes1 7,c7 the ,state income1 war profits1 and excess profits taxes1 plus 7,d7 the ,state general sales taxes1 for the calendar year in which the second preceding taxable year ends and within which paid or accrued by the taxpayer4 ,for purposes of this section1 terms used in the preceding sentence which are also used in section #afd shall have the respective meanings given such terms by section #afd4 7#c7 ,total tax revenue ,the total tax revenue of a ,state for an opt-out year is the amount determined by the ,secretary to be the aggregate tax revenue of such ,state for the calendar year in which the second preceding taxable year ends4 7c7 ,eligible individual ,for purposes of this section-- 7#a7 ,in general ,the term eligible individual means an individual whose principal place of abode 7within the meaning of section #aba7 was in the opt-out ,state for the entire taxable year4 7#b7 ,dependents ,the term eligible individual does not include any individual if a deduction under section #aea with respect to such individual is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual's taxable year begins4 7d7 ,opt-,out year ,the term opt-out year means a calendar year for which the ,secretary determines a ,state to be an opt-out ,state under section #aja of the ,local ,education ,authority ,returns ,now ,act4 7e7 ,amount of credit shall be determined under tables 7#a7 ,in general ,the credit under subsection 7a7 shall be determined under tables prescribed by the ,secretary4 7#b7 ,requirements for tables ,the tables prescribed under paragraph 7#a7 shall-- 7,a7 reflect the provisions of this section1 and 7,b7 take into account filing status1 ,state of residence1 and adjusted gross income4 4 7b7 ,conforming amendments 7#a7 ,paragraph 7#b7 of section #acbd7;b7 of title #ca1 ,united ,states ,code1 is amended by inserting #cf;,c1 after #cf;,b14 7#b7 ,the table of sections for subpart ,c of part ,,iv of subchapter ,a of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting after the item relating to section #cf;,b the following new item3 ,sec4 #cf;,c4 ,opt-out ,state education credit4 4 7c7 ,effective date ,the amendments made by this section shall apply to taxable years beginning after the date of the enactment of this ,act4