,i  #aac? ,,congress  #a/ ,session  ,h4 
,r4 #dbb  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,janu>y #be1 #bjac    
,mr4 ,franks ( ,arizona 7= himself1 ,mr4
 ,gos>1 ,mr4 ,s*weik]t1 ,mr4 ,salmon1   
,mr4 ,mulvaney1 ,mrs4 ,blackburn1 ,mr4  
,mess]1 ,mr4 ,la,malfa1 ,mr4 ,hultgr51 &
 ,mr4 ,web] ( ,texas7 introduc$ ! foll[+
 bill2 :i* 0 ref]r$ to ! ,committee on  
,ways & ,means  ,a ,,bill  ,to am5d !   
,int]nal ,rev5ue ,code ( #aihf to       
provide = a cr$it :i* is dep5d5t on     
enactm5t ( ,/ate qualifi$ s*ol>%ip tax  
cr$its & :i* is all[$ aga9/ ! ,f$]al    
income tax = *>itable contributions to  
education inve/m5t organizations t      
provide assi/ance = elem5t>y & second>y 
education4  #a4 ,%ort title2 f9d+s  7a7 
,%ort title ,?is ,act may be cit$ z !   
,*ildr5's ,hope ,act ( #bjac4  7b7      
,f9d+s ,congress f9ds ! foll[+3  7#a7   
,on ,april #d1 #bjaa1 ! ,unit$ ,/ates   
,supreme ,c\rt rul$ t oppon5ts (        
,arizona's private s*ool s*ol>%ip tax   
cr$it program may n *all5ge ! program on

 gr\nds t x violates ! ,e/abli%m5t      
,clause ( ! ,fir/ ,am5dm5t4  7#b7 ,!    
,c\rt rul$ #e-d 9 ,g>riott v4 ,w9n &    
,arizona ,*ri/ian ,s*ool ,tuition       
,organization v4 ,w9n aga9/ a lawsuit by
 ! ,arizona *apt] ( ! ,am]ican ,civil   
,lib]ties ,union1 :i* conte/$ a tax     
cr$it program giv+ ,arizona p>5ts *oices
 o!r ?an _! neighborhood public s*ools4 
7#c7 ,! ,*ildr5's ,hope ,act ( #bjac    
builds on ! success ( ! ,arizona private
 s*ool s*ol>%ip tax cr$it program4 ,?us 
f>1 ,arizona taxpay]s h rais$ m ?an #dcj
 million = s*ol>%ips s9ce #aiih4 ,9     
#bjaa alone1 ne>ly #ge1jjj taxpay]s     
aw>d$ m ?an #dg million = #be1jjj       
s*ol>%ips to ,arizona *ildr54  #b4 ,tax 
cr$it = contributions to education      
inve/m5t organizations  7a7 ,9 ,g5]al   
,subp>t ,b ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( ! ,int]nal ,rev5ue ,code (   
#aihf 7relat+ to o!r cr$its7 is am5d$ by
 ins]t+ aft] section #cj;,d ! foll[+ new
 section3  #cj;,e4 ,contributions to    
education inve/m5t organizations  7a7 ,9

 ,g5]al ,!re %all be all[$ z a cr$it    
aga9/ ! tax impos$ by ?is *apt] = !     
taxable ye> ! aggregate am\nt ( qualifi$
 contributions = ! taxable ye>4  7b7    
,limitation ,! am\nt all[$ z a cr$it "u 
subsection 7a7 = a taxable ye> %all n   
exce$ #ajj 7#bjj 9 ! case ( a jo9t      
return74  7c7 ,qualifi$ contributions ,=
 purposes ( ?is section--  7#a7 ,9 g5]al
 ,! t]m qualifi$ contribution means a   
*>itable contribution 7z def9$ by       
section #agj7;c77 to an education       
inve/m5t organization4  7#b7 ,education 
inve/m5t organization ,! t]m education  
inve/m5t organization means any         
organization describ$ 9 section         
#agj7;c77#b7 if--  7,a7 normally n less 
?an #ij p]c5t ( ! annual ca%            
contributions to su* organization are   
disburs$ 9 ! =m ( grants to /ud5ts =    
qualifi$ elem5t>y & second>y education  
exp5ses1 &  7,b7 n less ?an  ( su*      
disbursem5ts are to /ud5ts :o are       
eligible = free or r$uc$-co/ lun*es "u !
 s*ool lun* program e/abli%$ "u ! ,ri*>d

 ,b4 ,russell ,national ,s*ool ,lun*    
,act4  7#c7 ,qualifi$ elem5t>y &        
second>y education exp5ses ,! t]m       
qualifi$ elem5t>y & second>y education  
exp5ses has ! mean+ giv5 su* t]m by     
section #ecj7;b77#c71 except t *ild %all
 be sub/itut$ = b5efici>y & a *ild %all 
be sub/itut$ = ! designat$ b5efici>y ( !
 tru/ 9 clauses 7i7 & 7iii7 (           
subp>agraph 7,a74  7#d7 ,/ate cr$it mu/ 
be tak5 fir/  7,a7 ,no cr$it %all be    
all[$ to a taxpay] "u ?is section = a   
taxable ye> unless1 = ! taxable ye>1 !  
taxpay] is all[$ on ! taxpay]'s ,/ate   
tax return ! m9imum ,/ate qualifi$      
s*ol>%ip tax cr$it 7z def9$ 9 section #c
 ( ! ,*ildr5's ,hope ,act ( #bjac74     
7,b7 ,no cr$it %all be all[$ to a       
taxpay] "u ?is section = su* taxable ye>
 = any contributions t 7 tak5 into      
acc\nt = purposes ( su* ,/ate qualifi$  
s*ol>%ip tax cr$it4  7d7 ,special ,rules
  7#a7 ,d5ial ( d\ble b5efit ,no        
d$uction %all be all[$ "u any provision 
( ?is *apt] = any exp5se = :i* a cr$it  

is all[$ "u ?is section4  7#b7 ,"t :5   
contributions deem$ made ,= purposes (  
?is section1 a taxpay] %all be deem$ to 
h made a contribution to an education   
inve/m5t organization on ! la/ day ( !  
prec$+ taxable ye> if ! contribution is 
made on acc\nt ( su* taxable ye> & is   
made n lat] ?an ! "t prescrib$ by law = 
fil+ ! return = su* taxable ye> 7n      
includ+ ext5sions !re(74  4  7b7        
,s*ol>%ips f education inve/m5t         
organizations exclud$ f income ,section 
#gd ( su* ,code 7relat+ to prizes &     
aw>ds7 is am5d$ by add+ at ! end !      
foll[+ new subsection3  7d7 ,s*ol>%ips f
 education inve/m5t organizations ,gross
 income does n include am\nts receiv$ z 
a s*ol>%ip f an education inve/m5t      
organization 7z def9$ 9 section         
#cj;,e7c77#b77 = qualifi$ elem5t>y &    
second>y education exp5ses 7z def9$ 9   
section #cj;,e7c77#c774 ,su* s*ol>%ip   
%all n be tak5 into acc\nt = purposes ( 
det]m9+ eligibility = any ,f$]al        
program4  4  7c7 ,cl]ical am5dm5t ,!    

table ( sections = su* subp>t ,b is     
am5d$ by ins]t+ aft] ! item relat+ to   
section #cj;,d ! foll[+ new item3  ,sec4
 #cj;,e4 ,contributions to education    
inve/m5t organizations4  4  7d7         
,effective ,date ,! am5dm5ts made by ?is
 section %all apply to taxable ye>s     
beg9n+ aft] ,decemb] #ca1 #bjab4  #c4   
,f$]al s*ol>%ip tax cr$it condition$ on 
,/ate qualifi$ s*ol>%ip tax cr$it  7a7  
,9 g5]al ,= purposes ( section          
#cj;,e7c77#d7 ( ! ,int]nal ,rev5ue ,code
 ( #aihf 7z add$ by section #b ( ?is    
,act71 a s*ol>%ip tax cr$it %all n be   
treat$ z a ,/ate qualifi$ s*ol>%ip tax  
cr$it unless ! requirem5ts ( subsection 
7b7 are met4  7b7 ,requirem5ts relat+ to
 ,/ate qualifi$ s*ol>%ip tax cr$it  7#a7
 ,9 g5]al ,= purposes ( subsection 7a71 
! requirem5ts ( ?is subsection are met  
only if--  7,a7 ! tax cr$it is = an     
am\nt ( n less ?an #bej p] taxpay] & is 
all[$ aga9/ ! ,/ate income tax 7prop]ty 
tax = ^? ,/ates t don't h income tax7 = 
! am\nt ( volunt>y ca% contributions    

made by ! taxpay] dur+ ! taxable ye> to 
a s*ool tuition organization describ$ 9 
p>agraph 7#b71  7,b7 ! excess ( su*     
cr$it ov] tax liability may be c>ri$    
=w>d = n m ?an five ye>s1  7,c7 !       
taxpay] does n require1 z a condition ( 
! contribution1 t ! contribution mu/    
b5efit a specific *ild1 &  7,d7 su*     
cr$it is n all[able = direct donations  
to private s*ools4  7#b7 ,s*ool tuition 
organization ,= purposes ( p>agraph     
7#a71 a s*ool tuition organization is   
describ$ 9 ?is p>agraph if su*          
organization--  7,a7 is an organization 
op]at+ 9 ! ,/ate & is describ$ 9 section
 #eja7;c77#c71 & is exempt f tax "u     
section #eja7;a71 ( ! ,int]nal ,rev5ue  
,code ( #aihf1  7,b7 exp5ds at lea/ #ij 
p]c5t ( its annual ca% contributions =  
educational s*ol>%ips or tuition grants 
to *ildr5 to all[ !m to att5d any       
qualifi$ s*ool *os5 at ! sole discretion
 ( _! p>5ts1 &  7,c7 disburses at lea/  
#ij p]c5t ( its annual ca% contributions
 )9 "o ye> ( _! receipt4  7#c7 ,qualifi$

 s*ool ,= purposes ( p>agraph 7#b71 !   
t]m qualifi$ s*ool means any elem5t>y   
s*ool or second>y s*ool t is locat$ 9 ! 
,/ate 9 :i* ! taxpay] resides & does n  
discrim9ate on ! basis ( race1 color1   
h&icap1 familial /atus1 or national     
orig9 & t satisfies ! requirem5ts       
prescrib$ by ,/ate law = su* s*ools z ( 
,decemb] #ca1 #bjaj4  7#d7 ,educational 
s*ol>%ips or tuition grants ,! t]m      
educational s*ol>%ip or a tuition grant 
means any s*ol>%ip or grant aw>d$ =     
qualifi$ elem5t>y & second>y education  
exp5ses 7z def9$ 9 section #cj;,e7c77#c7
 ( ! ,int]nal ,rev5ue ,code ( #aihf74   
7c7 ,/ate ,= purposes ( ?is section1 !  
t]m ,/ate means any ( ! sev]al ,/ates4