,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #bcid  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,june #ag1 #bjac ,mr4 
,g>rett 7= himself1 ,mr4 ,bi%op ( ,utah1
 ,mr4 ,s\!rl&1 ,mr4 ,pe>ce1 ,mr4        
,huelskamp1 ,mr4 ,k+ ( ,i[a1 ,mr4       
,huiz5ga ( ,mi*igan1 ,mr4 ,mulvaney1    
,mr4 ,la,malfa1 ,mr4 ,pitt5g]1 ,mr4     
,franks ( ,arizona1 ,mr4 ,*abot1 ,mr4   
,posey1 ,mr4 ,gohm]t1 ,mrs4 ,blackburn1 
,mr4 ,mull91 ,mr4 ,campbell1 ,mr4 ,br\n 
( ,georgia1 & ,mr4 ,jones7 introduc$ !  
foll[+ bill2 :i* 0 ref]r$ to !          
,committee on ,ways & ,means1 & 9       
addition to ! ,committee on ,education &
 ! ,work=ce1 = a p]iod to be subsequ5tly
 det]m9$ by ! ,speak]1 9 ea* case =     
consid]ation ( su* provisions z fall )9 
! jurisdiction ( ! committee conc]n$  ,a
 ,,bill  ,to all[ a ,/ate to opt out (  
,k-#ab education grant programs & !     
requirem5ts ( ^? programs1 to am5d !    
,int]nal ,rev5ue ,code ( #aihf to       
provide a cr$it to taxpay]s 9 su* a     
,/ate1 & = o!r purposes4  #a4 ,%ort     

title2 table ( cont5ts  7a7 ,%ort title 
,?is ,act may be cit$ z ! ,local        
,education ,au?ority ,returns ,n[ ,act4 
7b7 ,table ( cont5ts ,! table ( cont5ts 
= ?is ,act is z foll[s3  ,sec4 #a4 ,%ort
 title2 table ( cont5ts4 ,title         
,i--,ability ( ,/ates to opt out (      
,k-#ab education grant programs ,sec4   
#aja4 ,det]m9ations by ,secret>y ( !    
,treasury z to :i* ,/ates are opt-out   
,/ates4 ,sec4 #ajb4 ,am\nts cr$itable to
 ,/ates4 ,sec4 #ajc4 ,opt-out ,/ates n  
eligible to receive grants "u ,k-#ab    
education grant programs4 ,sec4 #ajd4   
,requirem5ts ( ,k-#ab education grant   
programs d n apply to opt-out ,/ates4   
,sec4 #aje4 ,def9itions4 ,title         
,,ii--,cr$it to taxpay]s 9 opt-out ,/ate
 ,sec4 #bja4 ,refundable opt-out ,/ate  
education cr$it4  ,i ,ability ( ,/ates  
to opt out ( ,k-#ab education grant     
programs  #aja4 ,det]m9ations by        
,secret>y ( ! ,treasury z to :i* ,/ates 
are opt-out ,/ates  7a7 ,deadl9e ,n lat]
 ?an ,febru>y #a ( ea* cal5d> ye>       

7h]e9aft] 9 ?is title ref]r$ to z !     
det]m9ation ye>71 ! ,secret>y ( !       
,treasury %all det]m9e :i* ,/ates1 if   
any1 are opt-out ,/ates = ! cal5d> ye>  
7h]e9aft] 9 ?is title ref]r$ to z !     
opt-out ye>7 t foll[s ! det]m9ation ye>4
  7b7 ,det]m9ation ,! ,secret>y ( !     
,treasury %all det]m9e t a ,/ate is an  
opt-out ,/ate = an opt-out ye> "u       
subsection 7a7 if1 & only if1 !re is    
transmitt$ to ! ,secret>y a copy ( a    
law1 9 effect z ( ,janu>y #a ( !        
det]m9ation ye>1 t c fairly be read to  
mean t ! policy ( ! ,/ate is to n accept
 grant funds "u ! ,k-#ab education grant
 programs1 & !reby to n be b\nd by !    
requirem5ts ( ^? programs1 = t opt-out  
ye>4  7c7 ,notification ,^u mak+ a      
det]m9ation "u subsection 7a71 !        
,secret>y ( ! ,treasury %all transmit t 
det]m9ation to ! ,secret>y ( ,education 
& to ,congress4  #ajb4 ,am\nts cr$itable
 to ,/ates  7a7 ,9 g5]al ,= purposes (  
det]m9ations relat+ to ! refundable     
opt-out ,/ate education cr$it "u section

 #cf;,d ( ! ,int]nal ,rev5ue ,code (    
#aihf1 z e>ly z practicable = a cal5d>  
ye>1 ! ,secret>y ( ,education %all1 =   
ea* ,/ate1 det]m9e ! am\nt cr$itable to 
t ,/ate = t cal5d> ye> & make available 
t det]m9ation4  7b7 ,am\nt cr$itable ,! 
,secret>y %all det]m9e ! am\nt cr$itable
 to a ,/ate = a cal5d> ye> z foll[s3    
7#a7 ,if ! ,/ate 0 n an opt-out ,/ate = 
! prec$+ cal5d> ye>1 ! am\nt cr$itable =
 ! cal5d> ye> %all be equal to !        
aggregate ,k-#ab fund+ 7z det]m9$ "u    
subsection 7d77 = t ,/ate = t prec$+    
cal5d> ye>4  7#b7 ,if ! ,/ate 0 an      
opt-out ,/ate = ! prec$+ cal5d> ye>1 !  
am\nt cr$itable = ! cal5d> ye> %all be  
equal to--  7,a7 ! extrapolat$ am\nt 7z 
det]m9$ "u subsection 7c77 = t prec$+   
cal5d> ye>1 plus  7,b7 ! am\nt t results
 :5 ! am\nt cr$itable = t prec$+ cal5d> 
ye> is subtract$ f ! extrapolat$ am\nt  
7z det]m9$ "u subsection 7c77 = t prec$+
 cal5d> ye>4  7c7 ,extrapolat$ am\nt    
7#a7 ,9 g5]al ,! ,secret>y ( ,education 
%all det]m9e ! extrapolat$ am\nt = a    

,/ate = a cal5d> ye>4 ,! det]m9ation    
%all be bas$ on--  7,a7 ! am\nt ( grant 
funds t w\ld h be5 receiv$ o!r ?an on a 
competitive basis1 z direct grants1     
subgrants1 or o!rwise1 "u ! ,k-#ab      
education grant programs1 by ! ,/ate or 
any public educational entity 9 ! ,/ate 
= t cal5d> ye>1 _h x elect$ n to be an  
opt-out ,/ate = t cal5d> ye>2 plus  7,b7
 ! av]age annual am\nt ( all grant funds
 t w\ld h be5 receiv$ on a competitive  
basis1 z direct grants1 subgrants1 or   
o!rwise1 "u ! ,k-#ab education grant    
programs1 by ! ,/ate or any public      
educational entity 9 ! ,/ate = t cal5d> 
ye> & ! f\r prec$+ cal5d> ye>s1 _h x    
elect$ n to be an opt-out ,/ate = ^?    
cal5d> ye>s4  7#b7 ,regulations ,!      
,secret>y %all prescribe regulations =  
mak+ det]m9ations requir$ by ?is        
subsection4 ,! initial regulations %all 
be prescrib$ n lat] ?an #f mon?s aft] ! 
date ( ! enactm5t ( ?is ,act4  7d7      
,aggregate ,k-#ab fund+ ,! aggregate    
,k-#ab fund+ = a ,/ate = a cal5d> ye>   

%all be equal to--  7#a7 ! am\nt ( all  
grant funds receiv$ o!r ?an on a        
competitive basis1 z direct grants1     
subgrants1 or o!rwise1 "u ! ,k-#ab      
education grant programs1 by ! ,/ate or 
any public educational entity 9 ! ,/ate 
= t cal5d> ye>2 plus  7#b7 ! av]age     
annual am\nt ( all grant funds receiv$  
on a competitive basis1 z direct grants1
 subgrants1 or o!rwise1 "u ! ,k-#ab     
education grant programs1 by ! ,/ate or 
any public educational entity 9 ! ,/ate 
= t cal5d> ye> & ! f\r prec$+ cal5d>    
ye>s4  #ajc4 ,opt-out ,/ates n eligible 
to receive grants "u ,k-#ab education   
grant programs  7a7 ,9 g5]al ,:5 a ,/ate
 is an opt-out ,/ate = a cal5d> ye>1    
nei!r ! ,/ate nor any public educational
 entity 9 ! ,/ate is eligible to        
receive1 z direct grants1 subgrants1 or 
o!rwise1 any funds "u any ( ! ,k-#ab    
education grant programs = t cal5d> ye>4
  7b7 ,reallocation ,any funds "u a     
,k-#ab education grant program t are n  
allocat$ to a ,/ate or public           

educational entity 9 ! ,/ate by reason (
 subsection 7a7 %all be return$ to !    
,treasury4  #ajd4 ,requirem5ts ( ,k-#ab 
education grant programs d n apply to   
opt-out ,/ates ,:5 a ,/ate is an opt-out
 ,/ate = a cal5d> ye>1 nei!r ! ,/ate nor
 any public educational entity 9 ! ,/ate
 is subject to any /atutory or          
regulatory requirem5t ( a ,k-#ab        
education grant program = t cal5d> ye>4 
#aje4 ,def9itions ,9 ?is title3  7#a7 ,!
 t]m ,k-#ab education grant program     
means any grant program c>ri$ out "u any
 title ( ! ,elem5t>y & ,second>y        
,education ,act ( #aife1 except = !     
foll[+3  7,a7 ,indian1 ,native          
,hawaiian1 & ,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 ,! 
t]m public educational entity means1 )  
respect to a ,/ate1 ! ,/ate educational 
ag5cy1 any local educational ag5cy 9 !  
,/ate1 or any public elem5t>y or        
second>y s*ool 9 ! ,/ate4  ,,ii ,cr$it  

to taxpay]s 9 opt-out ,/ate  #bja4      
,refundable opt-out ,/ate education     
cr$it  7a7 ,9 g5]al ,subp>t ,c ( "p ,,iv
 ( sub*apt] ,a ( *apt] #a ( ! ,int]nal  
,rev5ue ,code ( #aihf 7relat+ to        
refundable cr$its7 is am5d$ by ins]t+   
aft] section #cf;,b ! foll[+ new        
section3  #cf;,c4 ,opt-out ,/ate        
education cr$it  7a7 ,g5]al rule ,9 !   
case ( an eligible individual1 !re %all 
be all[$ z a cr$it aga9/ ! tax impos$ by
 ?is *apt] = ! taxable ye> ! opt-out    
,/ate education am\nt4  7b7 ,opt-,out   
,/ate education am\nt ,= purposes ( ?is 
section--  7#a7 ,9 g5]al ,! t]m opt-out 
,/ate education am\nt means1 ) respect  
to a taxpay] = a taxable ye> beg9n+ 9 an
 opt-out ye>1 ! am\nt equal to--  7,a7 !
 am\nt cr$itable "u section #ajb ( !    
,local ,education ,au?ority ,returns ,n[
 ,act to an opt-out ,/ate 7det]m9$ "u   
section #aja ( su* ,act71 multipli$ by--
  7,b7 a fraction--  7i7 ! num]ator (   
:i* is ! taxpay]'s h\sehold tax burd5 f 
su* ,/ate = ! opt-out ye>1 &  7ii7 !    

d5om9ator ( :i* is ! total tax rev5ue ( 
su* ,/ate = ! opt-out ye>4  7#b7        
,h\sehold tax burd5 ,! h\sehold tax     
burd5 f a ,/ate = an opt-out ye> is !   
sum (--  7,a7 ! ,/ate real prop]ty      
taxes1  7,b7 ! ,/ate p]sonal prop]ty    
taxes1  7,c7 ! ,/ate income1 w> pr(its1 
& excess pr(its taxes1 plus  7,d7 !     
,/ate g5]al sales taxes1  = ! cal5d> ye>
 9 :i* ! second prec$+ taxable ye> ends 
& )9 :i* paid or accru$ by ! taxpay]4 ,=
 purposes ( ?is section1 t]ms us$ 9 !   
prec$+ s5t5ce :i* are also us$ 9 section
 #afd %all h ! respective mean+s giv5   
su* t]ms by section #afd4  7#c7 ,total  
tax rev5ue ,! total tax rev5ue ( a ,/ate
 = an opt-out ye> is ! am\nt det]m9$ by 
! ,secret>y to be ! aggregate tax rev5ue
 ( su* ,/ate = ! cal5d> ye> 9 :i* !     
second prec$+ taxable ye> ends4  7c7    
,eligible individual ,= purposes ( ?is  
section--  7#a7 ,9 g5]al ,! t]m eligible
 individual means an individual ^:      
pr9cipal place ( abode 7)9 ! mean+ (    
section #aba7 0 9 ! opt-out ,/ate = !   

entire taxable ye>4  7#b7 ,dep5d5ts ,!  
t]m eligible individual does n include  
any individual if a d$uction "u section 
#aea ) respect to su* individual is     
all[$ to ano!r taxpay] = a taxable ye>  
beg9n+ 9 ! cal5d> ye> 9 :i* su*         
individual's taxable ye> beg9s4  7d7    
,opt-,out ye> ,! t]m opt-out ye> means a
 cal5d> ye> = :i* ! ,secret>y det]m9es a
 ,/ate to be an opt-out ,/ate "u section
 #aja ( ! ,local ,education ,au?ority   
,returns ,n[ ,act4  7e7 ,am\nt ( cr$it  
%all be det]m9$ "u tables  7#a7 ,9 g5]al
 ,! cr$it "u subsection 7a7 %all be     
det]m9$ "u tables prescrib$ by !        
,secret>y4  7#b7 ,requirem5ts = tables  
,! tables prescrib$ "u p>agraph 7#a7    
%all--  7,a7 reflect ! provisions ( ?is 
section1 &  7,b7 take into acc\nt fil+  
/atus1 ,/ate ( resid5ce1 & adju/$ gross 
income4  4  7b7 ,con=m+ am5dm5ts  7#a7  
,p>agraph 7#b7 ( section #acbd7;b7 (    
title #ca1 ,unit$ ,/ates ,code1 is am5d$
 by ins]t+ #cf;,c1 aft] #cf;,b14  7#b7  
,! table ( sections = subp>t ,c ( "p    

,,iv ( sub*apt] ,a ( *apt] #a ( !       
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] ! item relat+ to section 
#cf;,b ! foll[+ new item3  ,sec4 #cf;,c4
 ,opt-out ,/ate education cr$it4  4  7c7
 ,effective date ,! am5dm5ts made by ?is
 section %all apply to taxable ye>s     
beg9n+ aft] ! date ( ! enactm5t ( ?is   
,act4