,,ii  #aad? ,,congress  #a/ ,session    
,s4 #hji  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,m>* #ai1 #bjae,mr4    
,rubio introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to all[ a cr$it   
aga9/ tax = qualifi$ elem5t>y & second>y
 education tuition4  #a4 ,%ort title    
,?is ,act may be cit$ z ! ,educational  
,opportunities ,act4  #b4 ,tax cr$it =  
contributions to s*ol>%ip grant+        
organizations  7a7 ,cr$it = individuals 
7#a7 ,9 g5]al ,subp>t ,a ( "p ,,iv (    
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #be;,d ! foll[+ new       
section3  #be;,e4 ,qualifi$ elem5t>y &  
second>y education tuition  7a7         
,all[ance ( cr$it ,9 ! case ( an        
individual1 !re %all be all[$ z a cr$it 
aga9/ ! tax impos$ by ?is *apt] = !     
taxable ye> an am\nt equal to ! am\nt ( 
qualifi$ contributions made by ! taxpay]
 dur+ ! taxable ye>4  7b7 ,doll>        

limitation ,! am\nt all[$ z a cr$it "u  
subsection 7a7 ) respect to any taxpay] 
%all n exce$--  7#a7 #b1bej1 9 ! case ( 
a m>ri$ individual fil+ a sep>ate       
return1 &  7#b7 #d1ejj1 9 any o!r case4 
7c7 ,qualifi$ contributions2 o!r        
def9itions ,= purposes ( ?is section--  
7#a7 ,qualifi$ contribution ,! t]m      
qualifi$ contribution means a *>itable  
contribution 7z def9$ by section        
#agj7;c77 to a s*ol>%ip grant+          
organization4  7#b7 ,s*ol>%ip grant+    
organization ,! t]m s*ol>%ip grant+     
organization means any organization--   
7,a7 :i* is describ$ 9 section          
#eja7;c77#c7 & exempt f tax "u section  
#eja7;a71  7,b7 ^: exclusive purpose is 
to provide s*ol>%ips = ! qualifi$       
elem5t>y & second>y education exp5ses ( 
eligible /ud5ts1 &  7,c7 :i* meets !    
requirem5ts ( subsection 7d74  7#c7     
,eligible /ud5t ,! t]m eligible /ud5t   
means an individual--  7,a7 :o is       
enroll$ 9 an elem5t>y or second>y s*ool 
7)9 ! mean+ ( section #ecj7;b77#c77;,b71

 aft] ! application ( p>agraph          
7#d77;,b771 &  7,b7 :o is a memb] ( a   
h\sehold ) a total annual h\sehold      
income :i* does n exce$ #bej p]c5t ( !  
,f$]al pov]ty guidel9es 7z det]m9$ by ! 
,secret>y ( ,heal? & ,human ,s]vices74  
7#d7 ,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--  7,a7 *ild %all
 be sub/itut$ = b5efici>y & a *ild %all 
be sub/itut$ = ! designat$ b5efici>y ( !
 tru/ 9 clauses 7i7 & 7iii7 (           
subp>agraph 7,a7 !re(1 &  7,b7 9 apply+ 
su* p>agraph1 ! t]m s*ool %all only     
include s*ools :i*--  7i7 *>ge tuition =
 att5dance1  7ii7 comply ) all          
applicable ,/ate laws1 includ+ laws     
relat+ to unlawful discrim9ation1 heal? 
& safety requirem5ts1 & crim9al         
backgr\nd *ecks ( employees1 &  7iii7   
agree to provide annual reports z       
describ$ 9 subsection 7e7 to a s*ol>%ip 
grant+ organization & to ! p>5ts or     

gu>dians ( eligible /ud5ts receiv+ a    
s*ol>%ip f ! s*ol>%ip grant+            
organization4  7#e7 ,s*ol>%ip ,! t]m    
s*ol>%ip does n include any paym5t to   
fulfill or fund any obligation or       
project ( any s*ool or s*ool sy/em to   
provide a free1 appropriate public      
education4  7d7 ,requirem5ts = s*ol>%ip 
grant+ organizations ,an organization   
meets ! requirem5ts ( ?is section if--  
7#a7 su* organization does n provide    
grants to eligible /ud5ts = any exp5ses 
o!r ?an qualifi$ elem5t>y & second>y    
education exp5ses1  7#b7 su*            
organization provides grants to--  7,a7 
m ?an #a /ud5t1 &  7,b7 diff]5t /ud5ts  
att5d+ m ?an #a s*ool1  7#c7 su*        
organization does n e>m>k or set aside  
contributions = s*ol>%ips on behalf (   
any p>ticul> /ud5t or to any specific   
s*ool or gr\p ( s*ools1  7#d7 su*       
organization takes appropriate /eps to  
v]ify ! annual h\sehold income & family 
size ( eligible /ud5ts to :i* x provides
 grants1  7#e7 su* organization obta9s  

annual audits f an indep5d5t c]tifi$    
public acc\ntant & submits su* audits to
 ! ,secret>y1  7#f7 no employee ( su*   
organization has violat$ any law relat+ 
to ! audit describ$ 9 p>agraph 7#d71 &  
7#g7 su* organization--  7,a7 requires  
any eligible /ud5t :o receives a        
s*ol>%ip--  7i7 to p>ticipate 9 !       
evaluation conduct$ by ! ,in/itute (    
,education ,sci5ce "u section #b7;d7 ( !
 ,educational ,opportunities ,act1 &    
7ii7 to p]mit su* organization to %>e   
assessm5t in=mation & o!r data reg>d+ ! 
/ud5t ) ! ,in/itute 9 accordance )      
subp>agraph 7,b71 &  7,b7 provides !    
reports describ$ 9 subsection           
7e77#a77;,c7 & su* o!r in=mation z      
necess>y to ! ,director ( ! ,in/itute ( 
,education ,sci5ce = ! purposes (       
id5tify+ eligible /ud5ts receiv+ a      
s*ol>%ip f su* organization & conduct+ !
 evaluations & reports requir$ "u       
section #b7;d7 ( ! ,educational         
,opportunities ,act4  ,= purposes (     
p>agraph 7#e71 ! t]m indep5d5t c]tifi$  

public acc\ntant means1 ) respect to an 
organization1 a c]tifi$ public acc\ntant
 :i* is n a relat$ p]son 7)9 ! mean+ (  
section #dfe7;b77#c77;,c77 ) respect to 
su* organization or any employee ( su*  
organization4  7e7 ,eligible s*ool      
report+ requirem5t  7#a7 ,9 g5]al ,!    
reports describ$ 9 ?is subsection       
include-- 7,a7 a report to ! p>5ts on ! 
/ud5t's academic a*ievem5t1 includ+ a   
comp>ison ) ! aggregate academic        
a*ievem5t ( o!r /ud5ts 9 ! same grade or
 level at ! s*ool :o receive a s*ol>%ip 
f a s*ol>%ip grant+ organization1 if    
available1 &  7,b7 a report1 to ea*     
s*ol>%ip grant+ organization t provides 
s*ol>%ips to /ud5ts at ! s*ool1 t       
includes--  7i7 ! te/ results1 9 !      
aggregate & disaggregat$ by race or     
e?nicity & grade level1 ( ! /ud5ts      
receiv+ su* s*ol>%ips :o are 9 grades #c
 ?r\gh #ab on a grade-appropriate       
nationally norm-ref]5c$ /&>diz$ te/1 or 
a grade-appropriate ,/ate-recogniz$     
assessm5t1 &  7ii7 any additional data  

reque/$ by ! ,director ( ! ,in/itute (  
,education ,sci5ces 9 accordance )      
section #b7;d77,b7 ( ! ,educational     
,opportunities ,act4  7#b7 ,no p]sonally
 id5tifiable in=mation ,9 prep>+ &      
submitt+ ! report describ$ 9 p>agraph   
7#a77;,b71 a s*ool %all n include any   
p]sonally id5tifiable in=mation reg>d+ a
 /ud5t4  7f7 ,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  7g7 ,election 
,?is section %all apply to a taxpay] = a
 taxable ye> only if su* taxpay] elects 
to h ?is section apply = su* taxable    
ye>4  4  7#b7 ,cl]ical am5dm5t ,! table 
( sections = subp>t ,a ( "p ,,iv (      
sub*apt] ,a ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ aft] ! item relat+ to   
section #be;,d ! foll[+ new item3  ,sec4
 #be;,e4 ,qualifi$ elem5t>y & second>y  
education tuition4  4  7b7 ,cr$it =     
corporations  7#a7 ,9 g5]al ,subp>t ,d (
 "p ,,iv ( sub*apt] ,a ( *apt] #a ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 

by add+ at ! end ! foll[+ new section3  
#de,s4 ,contributions to s*ol>%ip grant+
 organizations  7a7 ,g5]al rule ,=      
purposes ( section #ch1 9 ! case ( a    
corporation1 ! education s*ol>%ip cr$it 
det]m9$ "u ?is section = ! taxable ye>  
is ! aggregate am\nt ( qualifi$         
contributions = ! taxable ye>4  7b7     
,limitation ,! am\nt ( ! cr$it det]m9$  
"u ?is section = any taxable ye> %all n 
exce$ #ajj1jjj4  7c7 ,qualifi$          
contributions ,= purposes ( ?is section1
 ! t]m qualifi$ contribution has ! mean+
 giv5 su* t]m "u section #be;,e4  7d7   
,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  7e7 ,election ,?is section   
%all apply to a taxpay] = a taxable ye> 
only if su* taxpay] elects to h ?is     
section apply = su* taxable ye>4  4     
7#b7 ,con=m+ am5dm5ts  7,a7 ,section    
#ch7;b7 ( su* ,code is am5d$ by /rik+   
plus at ! end ( p>agraph 7#ce71 by /rik+
 ! p]iod & ins]t+ 1 plus at ! end (     

p>agraph 7#cf71 & by add+ at ! end !    
foll[+ new p>agraph3  7#cg7 ! education 
s*ol>%ip cr$it det]m9$ "u section       
#de,s7a74  4  7,b7 ,! table ( sections =
 subp>t ,d ( "p ,,iv ( sub*apt] ,a (    
*apt] #a ( su* ,code is am5d$ by add+ at
 ! end ! foll[+ new item3  ,sec4 #de,s4 
,contributions to s*ol>%ip grant+       
organizations4  4  7c7 ,excise tax on   
failure ( s*ol>%ip grant+ organizations 
,to make di/ributions  7#a7 ,9 g5]al    
,*apt] #db ( ! ,int]nal ,rev5ue ,code ( 
#aihf is am5d$ by add+ at ! end ! foll[+
 new sub*apt]3  ,h ,s*ol>%ip grant+     
organizations  ,sec4 #difh4 ,tax on     
failure to di/ribute receipts4  #difh4  
,tax on failure to di/ribute receipts   
7a7 ,tax impos$ ,!re is h]eby impos$ a  
tax on ! failure ( an s*ol>%ip grant+   
organization 7z def9$ 9 section         
#be;,e7c77#b77 to make di/ributions 9   
any taxable ye> 9 an am\nt equal to or 9
 excess ( ! requir$ di/ribution am\nt   
be=e ! di/ribution deadl9e4  7b7 ,am\nt 
( tax ,! tax impos$ by subsection 7a7   

%all be equal to #ae p]c5t ( ! excess   
7if any7 (--  7#a7 ! requir$ di/ribution
 am\nt ) respect to ! taxable ye>1 ov]  
7#b7 ! am\nt ( receipts ( ! s*ol>%ip    
grant+ organization = su* taxable ye>   
:i* are di/ribut$ be=e ! di/ribution    
deadl9e ) respect to su* receipts4  7c7 
,def9itions ,= purposes ( ?is section-- 
7#a7 ,requir$ di/ribution am\nt ,!      
requir$ di/ribution am\nt ) respect to a
 taxable ye> is ! am\nt equal to #ij    
p]c5t ( ! total receipts ( ! s*ol>%ip   
grant+ organization = su* taxable ye>4  
7#b7 ,di/ributions ,! t]m di/ribution   
includes am\nts :i* are =mally committ$ 
b n di/ribut$4  7#c7 ,di/ribution       
deadl9e ,! di/ribution deadl9e ) respect
 to receipts = a taxable ye> is ! fir/  
day ( ! second taxable ye> foll[+ !     
taxable ye> 9 :i* su* receipts are      
receiv$ by ! s*ol>%ip grant+            
organization4  7d7 ,reasonable cause    
exception ,! tax impos$ by subsection   
7a7 %all n apply ) respect to any       
failure to make requir$ di/ributions    

be=e ! di/ribution deadl9e :i* is n     
willful & is due to reasonable cause4  4
  7#b7 ,abatem5t ( tax  7,a7 ,g5]al rule
 ,subsection 7b7 ( section #difb ( su*  
,code is am5d$ by /rik+ or ,g & ins]t+  
,g1 or ,h4  7,b7 ,fir/ ti] tax          
,subsection 7a7 ( section #difc ( su*   
,code is am5d$ by ins]t+ #difh1 aft]    
#difg14  7,c7 ,taxable ev5t ,subsection 
7c7 ( section #difc ( su* ,code is am5d$
 by ins]t+ #difh1 aft] #difg14  7#c7    
,correction p]iod ,subp>agraph 7,a7 (   
section #difc7;e77#b7 ( su* ,code is    
am5d$ by ins]t+ or #difh aft] #didb4    
7#d7 ,con=m+ am5dm5t ,! table (         
sub*apt]s = *apt] #db ( su* ,code is    
am5d$ by add+ at ! end ! foll[+ new     
item3  ,sub*apt] ,h4 ,s*ol>%ip grant+   
organizations  4  7d7 ,evaluations  7#a7
 ,def9itions ,9 ?is section--  7,a7 !   
t]ms eligible /ud5t1 qualifi$ elem5t>y &
 second>y education exp5ses1 & s*ol>%ip 
grant+ organization h ! mean+s giv5 su* 
t]ms 9 section #be;,e7c7 ( ! ,int]nal   
,rev5ue ,code ( #aihf1 z add$ by ?is    

,act2  7,b7 ! t]m ,director means !     
,director ( ! ,in/itute ( ,education    
,sci5ces2 &  7,c7 ! t]m p>ticipat+ /ud5t
 means an eligible /ud5t :o receives a  
s*ol>%ip = qualifi$ elem5t>y & second>y 
education exp5ses f a s*ol>%ip grant+   
organization4  7#b7 ,evaluations  7,a7  
,9 g5]al ,by n lat] ?an ,april #a ( !   
ye> foll[+ ! ye> ( ! date ( enactm5t (  
?is ,act1 & by ,april #a ( ea* subsequ5t
 ye>1 ! ,director %all conduct an annual
 evaluation to det]m9e ! effectiv5ess ( 
s*ol>%ips provid$ by s*ol>%ip grant+    
organizations to eligible /ud5ts 9      
improv+ ! academic a*ievem5t & success (
 ! eligible /ud5ts4  7,b7 ,cont5ts ( !  
evaluation ,9 conduct+ ! evaluation     
requir$ "u ?is subsection1 ! ,director  
%all--  7i7 reque/1 f ea* s*ol>%ip      
grant+ organization1 ! reports provid$  
to ! s*ol>%ip grant+ organization by !  
s*ools accept+ p>ticipat+ /ud5ts1 9     
accordance ) section #be;,e7e77#a77;,b72
  7ii7 us+ ! reports describ$ 9 clause  
7i71 assess ! academic a*ievem5t ( all  

p>ticipat+ /ud5ts 9 grades #c ?r\gh #ab1
 bas$ on ! nationally norm-ref]5c$      
/&>diz$ te/ or ,/ate-recogniz$ assessm5t
 us$ by ea* s*ool2  7iii7 evaluate !    
s*ool ret5tion rates1 second>y s*ool    
graduation rates1 & in/itution ( high]  
education admission rates ( p>ticipat+  
/ud5ts2  7iv7 evaluate ! success ( ! tax
 cr$its all[$ "u section #be;,e & #de,s 
( ! ,int]nal ,rev5ue ,code ( #aihf1 z   
add$ by ?is ,act1 9 exp&+ s*ool *oice   
options = p>5ts ( p>ticipat+ /ud5ts1    
increas+ ! satisfaction ( su* p>5ts &   
/ud5ts1 & increas+ p>5tal involvem5t (  
su* p>5ts 9 ! education ( _! /ud5ts2 &  
7v7 evaluate su* o!r issues ) respect to
 ! education ( p>ticipat+ /ud5ts z !    
,director consid]s appropriate =        
inclusion 9 ! evaluation4  7#c7 ,reports
 ,by n lat] ?an ,april #a ( ! ye> aft] !
 ye> ( ! fir/ evaluation "u p>agraph    
7#b71 & by ,april #a ( ea* subsequ5t    
ye>1 ! ,director %all submit to !       
,committee on ,ways & ,means & !        
,committee on ,heal?1 ,education1       

,labor1 & ,p5sions ( ! ,s5ate1 & !      
,committee on ,f9ance & ! ,committee on 
,education & ! ,work=ce ( ! ,h\se (     
,repres5tatives1 an annual report on    
s*ol>%ips provid$ by s*ol>%ip grant+    
organizations t incorporates ! results (
 ! mo/ rec5t evaluation describ$ 9      
p>agraph 7#b74  7#d7 ,prohibition ,no   
p]sonally id5tifiable in=mation %all be 
disclos$ 9 ! data1 evaluations1 &       
reports requir$ "u ?is subsection4  7#e7
 ,public availability ,! ,director %all 
make all evaluations1 reports1 & und]ly+
 data ga!r$ pursuant to ?is subsection  
available to ! public1 ^u reque/ & 9 a  
timely mann] foll[+ submission ( !      
applicable report or evaluation "u ?is  
subsection1 subject to p>agraph 7#d74   
7e7 ,effective date ,! am5dm5ts made by 
subsections 7a71 7b71 & 7c7 %all apply  
to taxable ye>s beg9n+ aft] ,decemb]    
#ca1 #bjae4