,i  #aaeth ,,congress  #ast ,session    
,h4 ,r4 #dbfi  ,,in ,,the ,,house ,,of  
,,representatives  ,november #g1        
#bjag,ms4 ,sewell of ,alabama 7for      
herself and ,mr4 ,danny ,k4 ,davis of   
,illinois7 introduced the following     
bill2 which was referred to the         
,committee on ,ways and ,means  ,a      
,,bill  ,to amend the ,internal ,revenue
 ,code of #aihf to eliminate the school 
voucher ,state tax credit loophole by   
limiting the double benefit of          
charitable contributions4  #a4 ,short   
title ,this ,act may be cited as the    
,public ,funds for ,public ,schools     
,act4  #b4 ,elimination of school       
voucher ,state tax credit loophole by   
limiting the double benefit of          
charitable contributions  7a7 ,in       
general ,section #agj7;f7 of the        
,internal ,revenue ,code of #aihf is    
amended by adding at the end the        
following new paragraph3  7#ai7         
,limitation on double benefit in the    
case of ,state school voucher tax       

benefits  7,a7 ,in general ,the amount  
of any charitable contribution otherwise
 taken into account under this section  
shall be reduced by any ,state school   
voucher tax benefit with respect to such
 contribution4  7,b7 ,state school      
voucher tax benefit ,for purposes of    
this paragraph1 the term ,state school  
voucher tax benefit means the aggregate 
amount of any ,state income tax credits1
 and excess ,state income tax           
deductions1 provided to the taxpayer by 
a ,state for any contribution to a      
specified school voucher organization4  
7,c7 ,excess ,state income tax          
deductions ,for purposes of this        
paragraph1 the term excess ,state income
 tax deduction means the product of--   
7i7 the highest rate of ,state income   
tax applicable to the taxpayer for the  
taxable year1 multiplied by  7ii7 the   
excess 7if any7 of-- 7,i7 the ,state    
income tax deduction provided to the    
taxpayer with respect to contributions  
by the taxpayer to specified school     

voucher organizations1 over  7,,ii7 the 
amount of such contributions4  7,d7     
,specified school voucher organization  
,for purposes of this paragraph1 the    
term specified school voucher           
organization means any organization the 
primary purpose of which is the         
provision of vouchers1 scholarships1 or 
other funds1 for the expenses of        
students to attend elementary or        
secondary schools4  7,e7 ,treatment of  
similar ,state benefits ,for purposes of
 this paragraph1 any ,state benefit     
which is economically equivalent to a   
tax credit 7including any payment7 shall
 be treated as a ,state income tax      
credit for purposes of this paragraph   
and any ,state benefit which is         
economically equivalent to a ,state     
income tax deduction 7including any     
exclusion from gross income7 shall be   
treated as a ,state income tax deduction
 for purposes of this paragraph4  7#bj7 
,special rule for contributions of      
built-in gain property to specified     

school voucher organizations  7,a7 ,in  
general ,in the case of any contribution
 by the taxpayer of built-in gain       
property to a specified school voucher  
organization1 such contribution shall be
 treated for purposes of this title as  
though such property were sold by the   
taxpayer at its fair market value       
immediately before such contribution and
 the amount of such fair market value   
were contributed by the taxpayer as a   
cash contribution to the specified      
school voucher organization4  7,b7      
,definitions ,for purposes of this      
paragraph-- 7i7 ,built-in gain property 
,the term built-in gain property means  
any property if1 immediately before the 
contribution of such property1 the fair 
market value of such property exceeds   
the adjusted basis of such property4    
7ii7 ,specified school voucher          
organization ,the term specified school 
voucher organization has the meaning    
given such term in paragraph 7#ai74  4  
7b7 ,effective date ,the amendment made 

by this section shall apply to          
charitable contributions made in taxable
 years beginning after the date of the  
enactment of this ,act4