,i  #aaf? ,,congress  #b;d ,session  ,h4
 ,r4 #hajj  ,,9 ,,! ,,h\se ,,(          
,,repres5tatives  ,augu/ #be1 #bjbj,mr4 
,byrne 7= himself1 ,mr4 ,lip9ski1 & ,mr4
 ,walk]7 introduc$ ! foll[+ bill2 :i* 0 
ref]r$ to ! ,committee on ,ways &       
,means1 & 9 addition to ! ,committee on 
,education & ,labor1 = 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 provide =       
em]g5cy education fre$om grants1 to am5d
 ! ,int]nal ,rev5ue ,code ( #aihf to    
e/abli% tax cr$its to enc\rage          
individual & corporate taxpay]s to      
contribute to s*ol>%ips = /ud5ts ?r\gh  
eligible s*ol>%ip-grant+ organizations1 
& = o!r purposes4  #a4 ,%ort title ,?is 
,act may be cit$ z ! ,s*ool ,*oice ,n[  
,act4  ,i ,em]g5cy ,education ,fre$om   
,grants  #aja4 ,em]g5cy education fre$om
 grants  7a7 ,def9itions ,9 ?is title3  
7#a7 ,def9itions f ! ,int]nal ,rev5ue   
,code ( #aihf ,! def9itions 9 section   

#be;,e7c7 ( ! ,int]nal ,rev5ue ,code (  
#aihf1 z add$ by section #bja1 %all     
apply to ?is section1 except z o!rwise  
provid$4  7#b7 ,eligible s*ol>%ip-grant+
 organization ,! t]m eligible           
s*ol>%ip-grant+ organization means--    
7,a7 an organization t-- 7i7 is describ$
 9 section #eja7;c77#c7 ( ! ,int]nal    
,rev5ue ,code ( #aihf & exempt f        
taxation "u section #eja7;a7 ( su*      
,code2  7ii7 provides qualify+ s*ol>%ips
 to an eligible /ud5t :o-- 7,i7 resides 
9 ! ,/ate 9 :i* ! eligible              
s*ol>%ip-grant+ organization is         
recogniz$2 or  7,,ii7 9 ! case ( funds  
provid$ to ! ,secret>y ( ! ,int]ior1    
att5d+ elem5t>y s*ools or second>y      
s*ools op]at$ or fund$ by ! ,bureau (   
,indian ,education2  7iii7 is id5tifi$  
by a ,gov]nor to receive an allotm5t "u 
subsection 7b72  7iv7 agrees to allocate
 at lea/ #ie p]c5t ( its allotm5t "u    
subsection 7c7 to qualify+ s*ol>%ips2   
7v7 implem5ts robu/ policies & proc$ures
 to prev5t wa/e1 fraud1 & abuse 9 !     

program t x adm9i/]s2 &  7vi7 provides  
qualify+ s*ol>%ips to-- 7,i7 m ?an #a   
eligible /ud5t2  7,,ii7 m ?an #a        
eligible family2 &  7,,iii7 diff]5t     
eligible /ud5ts att5d+ m ?an #a         
education provid]2 or  7,b7 an          
organization t-- 7i7 is describ$ 9      
section #eja7;c77#c7 ( ! ,int]nal       
,rev5ue ,code ( #aihf & exempt f        
taxation "u section #eja7;a7 ( su*      
,code2  7ii7 pursuant to ,/ate law1 0   
able1 z ( ,janu>y #a1 #bjbj1 to receive 
contributions t are eligible = a ,/ate  
tax cr$it if su* contributions are us$  
by ! organization to provide s*ol>%ips  
to individual elem5t>y & second>y       
/ud5ts1 includ+ s*ol>%ips = att5d+      
private s*ools2  7iii7 agrees to        
allocate at lea/ #ie p]c5t ( its        
allotm5t "u subsection 7c7 to qualify+  
s*ol>%ips2  7iv7 implem5ts robu/        
policies & proc$ures to prev5t wa/e1    
fraud1 & abuse 9 ! program t x adm9i/]s2
 &  7v7 provides qualify+ s*ol>%ips to--
 7,i7 m ?an #a eligible /ud5t2  7,,ii7 m

 ?an #a eligible family2 &  7,,iii7     
diff]5t eligible /ud5ts att5d+ m ?an #a 
education provid]4  7#c7 ,em]g5cy       
education fre$om grant funds ,! t]m     
em]g5cy education fre$om grant funds    
means ! am\nt ( funds available "u      
subsection 7b7 or 7c77#a77;,a74  7#d7   
,gov]nor ,! t]m ,gov]nor means !        
,gov]nor ( a ,/ate1 ! *ief executive    
(fic] ( ! ,unit$ ,/ates ,virg9 ,isl&s1  
,guam1 ,am]ican ,samoa1 & ! ,commonweal?
 ( ! ,nor!rn ,m>iana ,isl&s1 & !        
,secret>y ( ! ,int]ior4  7#e7 ,secret>y 
,! t]m ,secret>y means ! ,secret>y (    
,education4  7#f7 ,/ate ,! t]m ,/ate    
means ea* ( ! #ej ,/ates1 ! ,di/rict (  
,columbia1 & ! ,commonweal? ( ,pu]to    
,rico4  7b7 ,grants  7#a7 ,program      
au?oriz$  7,a7 ,res]vations ,f any      
am\nts appropriat$ = section #ahjjc (   
division ,b ( ! ,,c>es ,act on or aft] !
 date ( enactm5t ( ?is ,act1 ! ,secret>y
 %all res]ve-- 7i7 ( ! am\nt res]v$ = ! 
,outly+ ,areas 9 section #ahjja7;a77#a7 
( ,"p ,b ( ! ,,c>es ,act on or aft]     

enactm5t1 #aj p]c5t = allotm5ts = !     
,unit$ ,/ates ,virg9 ,isl&s1 ,guam1     
,am]ican ,samoa1 & ! ,commonweal? ( !   
,nor!rn ,m>iana ,isl&s1 to be di/ribut$ 
among ^? outly+ areas on ! basis ( _!   
relative ne$1 z det]m9$ by ! ,secret>y1 
9 accordance ) ! purpose ( ?is title2 & 
7ii7 ( ! am\nt res]v$ = ! ,bureau (     
,indian ,education 9 section            
#ahjja7;a77#b7 ( "p ,b ( ! ,,c>es ,act  
on or aft] enactm5t1 #aj p]c5t ( su*    
am\nts = ! ,secret>y ( ! ,int]ior1 act+ 
?r\gh ! ,bureau ( ,indian ,edu- cation1 
to be us$ to provide subgrants describ$ 
9 subsection 7c7 to eligible            
s*ol>%ip-grant+ organizations t s]ve    
/ud5ts att5d+ elem5t>y s*ools or        
second>y s*ools op]at$ or fund$ by !    
,bureau ( ,indian ,education4  7,b7     
,/ate res]vation ,f any am\nt           
appropriat$ = section #ahjjc ( division 
,b ( ! ,,c>es ,act on or aft] ! date (  
enactm5t ( ?is ,act t a ,/ate receives1 
a ,/ate %all res]ve #aj p]c5t ( ^? funds
 to aw>d em]g5cy education fre$om grant 

funds to eligible s*ol>%ip grant+       
organizations 9 ! ,/ate4  7c7 ,subgrants
 to eligible s*ol>%ip-,grant+           
organizations  7#a7 ,9 g5]al ,a ,gov]nor
 %all use funds res]v$ "u subsection 7b7
 to aw>d subgrants to eligible          
s*ol>%ip-grant+ organizations 9 ! ,/ate4
  7#b7 ,initial tim+  7,a7 ,/ates )     
exi/+ tax cr$it s*ol>%ip program  7i7   
,by n lat] ?an #ae days aft] receiv+ an 
allotm5t f any am\nts receiv$ = section 
#ahjjc ( division ,b ( ! ,,c>es ,act "u1
 a ,/ate ) an exi/+1 z ( ! date (       
enactm5t ( ?is ,act1 tax cr$it s*ol>%ip 
program %all di/ribute n less ?an #ej   
p]c5t ( ! allotm5t to aw>d subgrants to 
eligible s*ol>%ip-grant+ organizations  
"u subsection 7a77#a77;,b7 9 ! ,/ate 9  
proportion to ! contributions receiv$ 9 
cal5d> ye> #bjai t 7 eligible = a ,/ate 
tax cr$it if su* contributions are us$  
by ! organization to provide s*ol>%ips  
to eligible /ud5ts1 includ+ s*ol>%ips = 
att5d+ private s*ools4  7ii7 ,by n lat] 
?an #fj days aft] receiv+ an allotm5t f 

any am\nt receiv$ = section #ahjjc (    
division ,b ( ! ,,c>es ,act1 a ,gov]nor 
) an exi/+ tax cr$it s*ol>%ip program   
%all use ! balance ( ! total allotm5t to
 aw>d subgrants to eligible             
s*ol>%ip-grant organizations "u         
subsection 7a77#a77;,b74  7,b7 ,/ates   
)\t tax cr$it s*ol>%ip programs  7i7 ,by
 n lat] ?an #cj days aft] receiv+ an    
allotm5t f any am\nts receiv$ = section 
#ahjjc ( division ,b ( ! ,,c>es ,act1 a 
,/ate )\t a tax cr$it s*ol>%ip program  
%all di/ribute n less ?an #ej p]c5t ( ! 
allotm5t to aw>d subgrants to eligible  
s*ol>%ip-grant+ organizations 9 ! ,/ate4
  7ii7 ,by n lat] ?an #ij days aft]     
receiv+ an allotm5t f any am\nts receiv$
 = section #ahjjc ( division ,b ( !     
,,c>es ,act1 a ,gov]nor 9 a ,/ate )\t an
 exi/+ tax cr$it s*ol>%ip program %all  
use ! balance ( ! allotm5t to aw>d      
subgrants to eligible s*ol>%ip-grant    
organizations "u subsection             
7a77#a77;,a74  7#c7 ,uses ( funds ,an   
eligible s*ol>%ip-grant+ organization t 

receives a subgrant "u ?is subsection-- 
7,a7 may res]ve n m ?an #e p]c5t ( !    
subgrant funds = public outrea*1 /ud5t &
 family support activities1 &           
adm9i/rative exp5ses relat$ to !        
subgrant2 &  7,b7 %all use n less ?an   
#ie p]c5t ( ! subgrant funds to provide 
qualify+ s*ol>%ips = qualifi$ exp5ses   
only to eligible /ud5ts :o reside 9 !   
,/ate 9 :i* ! eligible s*ol>%ip-grant+  
organization is recogniz$4  7d7         
,reallocation ,a ,/ate %all return to ! 
,secret>y any am\nts ( ! allotm5t res]v$
 "u ?is ,act t ! ,gov]nor does n aw>d z 
subgrants "u subsection 7c7 )9 #abj days
 ( receipt ( t allotm5t1 & ! ,secret>y  
%all reallocate su* funds to ! rema9+   
eligible ,/ates4  7e7 ,rules (          
con/ruction  7#a7 ,education provid]s t 
accept s*ol>%ip funds f /ud5ts "u ?is   
section %all n1 by reason ( su*         
p>ticipation1 be consid]$ recipi5ts (   
,f$]al f9ancial assi/ance1 nor %all !y1 
by reason ( su* p>ticipation1 be requir$
 to comply ) provisions ( f$]al law n   

o!rwise 9 effect z ( ! date ( ! passage 
( ?is ,act4  7#b7 ,! rules ( con/ruction
 "u section #be;,e7d7 ( ! ,int]nal      
,rev5ue ,code ( #aihf1 z add$ by section
 #bja1 %all apply to ?is section 9 !    
same mann] z su* rules apply to section 
#be;,e ( su* ,code1 z s add$4  ,,ii ,tax
 cr$its = contributions to eligible     
s*ol>%ip-grant+ organizations  #bja4    
,tax cr$its = contributions to eligible 
s*ol>%ip-grant+ organizations  7a7      
,cr$it = individuals ,subp>t ,a ( "p    
,,iv ( sub*apt] ,a ( *apt] #a ( !       
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ aft] section #be;,d ! foll[+ new
 section3  #be;,e4 ,contributions to    
eligible s*ol>%ip-grant+ organizations  
7a7 ,all[ance ( cr$it ,subject to       
section #bjb7;c7 ( ! ,s*ool ,*oice ,n[  
,act1 9 ! case ( an individual1 !re %all
 be all[$ z a cr$it aga9/ ! tax impos$  
by ?is *apt] = ! taxable ye> an am\nt   
equal to ! sum ( any qualifi$           
contributions made by ! taxpay] dur+ !  
taxable ye>4  7b7 ,am\nt ( cr$it ,!     

cr$it all[$ "u subsection 7a7 = any     
taxable ye> %all n exce$ #aj p]c5t ( !  
taxpay]'s adju/$ gross income = !       
taxable ye>4  7c7 ,def9itions ,=        
purposes ( ?is section-- 7#a7 ,eligible 
s*ol>%ip-grant+ organization ,! t]m     
eligible s*ol>%ip-grant+ organization   
means-- 7,a7 an organization t-- 7i7 is 
describ$ 9 section #eja7;c77#c7 & exempt
 f taxation "u section #eja7;a71  7ii7  
provides qualify+ s*ol>%ips to an       
eligible /ud5t :o-- 7,i7 resides 9 !    
,/ate 9 :i* ! eligible s*ol>%ip-grant+  
organization is recogniz$1 or  7,,ii7 9 
! case ( ! ,bureau ( ,indian ,education1
 are memb]s ( a f$]ally recogniz$ tribe1
  7iii7 a ,/ate id5tifies to ! ,secret>y
 z an eligible s*ol>%ip-grant+          
organization "u section                 
#bjb7;c77#e77;,b7 ( ! ,s*ool ,*oice ,n[ 
,act1  7iv7 allocates at lea/ #ij p]c5t 
( qualifi$ contributions to qualify+    
s*ol>%ips on an annual basis1  7v7      
implem5ts robu/ policies & proc$ures to 
prev5t wa/e1 fraud1 & abuse 9 ! program 

t x adm9i/]s1 &  7vi7 provides qualify+ 
s*ol>%ips to-- 7,i7 m ?an #a eligible   
/ud5t1  7,,ii7 m ?an #a eligible family1
 &  7,,iii7 diff]5t eligible /ud5ts     
att5d+ m ?an #a education provid]1 or   
7,b7 an organization t-- 7i7 is describ$
 9 section #eja7;c77#c7 & exempt f      
taxation "u section #eja7;a71  7ii7     
pursuant to ,/ate law1 0 able1 z (      
,janu>y #a1 #bjba1 to receive           
contributions t are eligible = a ,/ate  
tax cr$it if su* contributions are us$  
by ! organization to provide s*ol>%ips  
to individual elem5t>y & second>y       
/ud5ts1 includ+ s*ol>%ips = att5d+      
private s*ools1  7iii7 agrees to        
allocate at lea/ #ije p]c5t ( its       
allotm5t "u subsection 7c7 to qualify+  
s*ol>%ips on an annual basis1  7iv7     
implem5ts robu/ policies & proc$ures to 
prev5t wa/e1 fraud1 & abuse 9 ! program 
t x adm9i/]s1 &  7v7 provides qualify+  
s*ol>%ips to-- 7,i7 m ?an #a eligible   
/ud5t1  7,,ii7 m ?an #a eligible family1
 &  7,,iii7 diff]5t eligible /ud5ts     

att5d+ m ?an #a education provid]4  7#b7
 ,eligible /ud5t ,! t]m eligible /ud5t  
means-- 7,a7 a *ild1 z t t]m is def9$ 9 
section #haja7c7 ( ! ,elem5t>y &        
,second>y ,education ,act ( #aife1 :o   
comes f a family ^: h\sehold income is  
no m ?an #bjj p]c5t ( ! m$ian h\sehold  
income = t ,/ate1 z det]m9$ by ! ,bureau
 ( ! ,c5sus 9 compil+ ! mo/ rec5t data =
 ! ,am]ican ,community ,survey1 or  7,b7
 a *ild ) a disability1 z t t]m is def9$
 9 section #fjb ( ! ,individuals )      
,disabilities ,education ,act4  7#c7    
,qualifi$ contribution ,! t]m qualifi$  
contribution means a contribution ( ca% 
to any eligible s*ol>%ip-grant+         
organization4  7#d7 ,qualifi$ exp5se ,! 
t]m qualifi$ exp5se means any           
educational exp5se t is-- 7,a7 = an     
individual /ud5t's elem5t>y or second>y 
education1 z recogniz$ by ! ,/ate1 or   
7,b7 = ! second>y education compon5t (  
an individual elem5t>y or second>y      
/ud5t's c>e] & te*nical education1 z    
def9$ by section #c7e7 ( ! ,c>l ,d4     

,p]k9s ,c>e] & ,te*nical ,education ,act
 ( #bjjf 7#bj ,u4,s4,c4 #bcjb7e774  7#e7
 ,qualify+ s*ol>%ip ,! t]m qualify+     
s*ol>%ip means a s*ol>%ip grant$ by an  
eligible s*ol>%ip-grant+ organization to
 an individual elem5t>y or second>y     
/ud5t = a qualifi$ exp5se4  7#f7 ,/ate  
,! t]m ,/ate means ea* ( ! #ej ,/ates1 !
 ,di/rict ( ,columbia1 ! ,commonweal? ( 
,pu]to ,rico1 ! outly+ areas 7z def9$ 9 
section #aaba7;c7 ( ! ,elem5t>y &       
,second>y ,education ,act ( #aife 7#bj  
,u4,s4,c4 #fcca7;c771 & ! ,dep>tm5t ( ! 
,int]ior 7act+ ?r\gh ! ,bureau ( ,indian
 ,education74  7d7 ,rules ( con/ruction 
7#a7 ,9 g5]al ,a qualify+ s*ol>%ip aw>d$
 to a /ud5t f ! proce$s ( a qualifi$    
contribution "u ?is section %all n be   
consid]$ assi/ance to ! s*ool or o!r    
educational provid] t enrolls1 or       
provides educational s]vices to1 ! /ud5t
 or ! /ud5t's p>5ts4  7#b7 ,exclusion f 
income ,gross income %all n include any 
am\nt receiv$ by an individual z a      
qualify+ s*ol>%ip & su* am\nt %all n be 

tak5 into acc\nt z income or res\rces = 
purposes ( det]m9+ ! eligibility ( su*  
individual or any o!r individual =      
b5efits or assi/ance1 or ! am\nt or     
ext5t ( su* b5efits or assi/ance1 "u any
 ,f$]al program or "u any ,/ate or local
 program f9anc$ 9 :ole or 9 "p ) ,f$]al 
funds4  7#c7 ,prohibition ( control ov] 
nonpublic education provid]s  7,a7 7i7  
,no?+ 9 ?is section %all be con/ru$ to  
p]mit1 all[1 enc\rage1 or au?orize any  
,f$]al control ov] any aspect ( any     
private1 religi\s1 or home education    
provid]1 :e!r or n a home education     
provid] is treat$ z a private s*ool or  
home s*ool "u ,/ate law4  7ii7 ,?is     
section %all n be con/ru$ to exclude    
private1 religi\s1 or home education    
provid]s f p>ticipation 9 programs or   
s]vices "u ?is section4  7,b7 ,no?+ 9   
?is section %all be con/ru$ to p]mit1   
all[1 enc\rage1 or au?orize an entity   
submitt+ a li/ ( eligible               
s*ol>%ip-grant+ organizations on behalf 
( a ,/ate pursuant to section           

#bjb7;c77#e7 ( ! ,s*ool ,*oice ,n[ ,act 
to m&ate1 direct1 or control any aspect 
( a private or home education provid]1  
reg>dless ( :e!r or n a home education  
provid] is treat$ z a private s*ool "u  
,/ate law4  7,c7 ,no p>ticipat+ ,/ate or
 entity act+ on behalf ( a ,/ate        
pursuant to section #bjb7;c77#e7 ( !    
,s*ool ,*oice ,n[ ,act %all exclude1    
discrim9ate aga9/1 or o!rwise           
disadvantage any education provid] )    
respect to programs or s]vices "u ?is   
section bas$ 9 :ole or 9 "p on !        
provid]'s religi\s "* or affiliation1   
includ+ religi\sly bas$ or mission-bas$ 
policies or practices4  7#d7 ,p>5tal    
rights to use s*ol>%ips ,no p>ticipat+  
,/ate or entity act+ on behalf ( a ,/ate
 pursuant to section #bjb7;c77#e7 ( !   
,s*ool ,*oice ,n[ ,act %all disfavor or 
disc\rage ! use ( qualify+ s*ol>%ips = !
 pur*ase ( elem5t>y & second>y education
 s]vices1 includ+ ^? s]vices provid$ by 
private or nonpr(it entities1 su* z     
fai?-bas$ provid]s4  7#e7 ,/ate & local 

au?ority ,no?+ 9 ?is section %all be    
con/ru$ to modify a ,/ate or local      
gov]nm5t's au?ority & responsibility to 
fund education4  7e7 ,d5ial ( d\ble     
b5efit ,! ,secret>y %all prescribe su*  
regulations or o!r guidance to ensure t 
! sum ( ! tax b5efits provid$ by ,f$]al1
 ,/ate1 or local law = a qualifi$       
contribution receiv+ a ,f$]al tax cr$it 
9 any taxable ye> does n exce$ ! sum ( !
 qualifi$ contributions made by !       
taxpay] = ! taxable ye>4  7f7 ,c>ry=w>d 
( cr$it ,if a tax cr$it all[$ "u ?is    
section is n fully us$ )9 ! applicable  
taxable ye> because ( insuffici5t tax   
liability on ! "p ( ! taxpay]1 ! unus$  
am\nt may be c>ri$ =w>d = a p]iod n to  
exce$ #e ye>s4  7g7 ,election ,?is      
section %all apply to a taxpay] = a     
taxable ye> only if ! taxpay] elects to 
h ?is section apply = su* taxable ye>4  
7h7 ,alt]native m9imum tax ,= purposes (
 calculat+ ! alt]native m9imum tax "u   
section #ee1 a taxpay] may use any cr$it
 receiv$ = a qualifi$ contribution "u   

?is section4  4  7b7 ,cl]ical am5dm5t ,!
 table ( sections = subp>t ,a ( "p ,,iv 
( sub*apt] ,a ( *apt] #a ( ! ,int]nal   
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] ! item relat+ to section #be;,d ! 
foll[+ new item3  ,sec4 #be;,e4         
,contributions to eligible              
s*ol>%ip-grant+ organizations4  4  7c7  
,cr$it = corporations ,subp>t ,d ( "p   
,,iv ( sub*apt] ,a ( *apt] #a ( !       
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ at ! end ! foll[+ new section3  
#de,u4 ,contributions to eligible       
s*ol>%ip-grant+ organizations  7a7      
,all[ance ( cr$it ,subject to section   
#bjb7;c7 ( ! ,s*ool ,*oice ,n[ ,act1 =  
purposes ( section #ch1 !re %all be     
all[$ z a cr$it aga9/ ! tax impos$ by   
?is *apt] = ! taxable ye> an am\nt equal
 to ! sum ( any qualifi$ contributions  
7z def9$ 9 section #be;,e7c77#b77 made  
by su* corporation taxpay] dur+ !       
taxable ye>4  7b7 ,am\nt ( cr$it ,!     
cr$it all[$ "u subsection 7a7 = any     
taxable ye> %all n exce$ #e p]c5t ( !   

taxable income 7z def9$ 9 section       
#agj7;b77#b77;,d77 ( ! dome/ic          
corporation = su* taxable ye>4  7c7     
,additional provisions ,= purposes ( ?is
 section1 any qualifi$ contributions    
made by a dome/ic corporation %all be   
subject to ! provisions ( section #be;,e
 7includ+ subsection 7d7 ( su* section71
 to ! ext5t applicable4  7d7 ,election  
,?is section %all apply to a taxpay] = a
 taxable ye> only if ! taxpay] elects to
 h ?is section apply = su* taxable ye>4 
4  7d7 ,cr$it "p ( g5]al bus9ess cr$it  
,section #ch7;b7 is am5d$-- 7#a7 by     
/rik+ plus at ! end ( p>agraph 7#cb72   
7#b7 by /rik+ ! p]iod at ! end (        
p>agraph 7#cc7 & ins]t+ 1 plus2 &  7#c7 
by add+ at ! end ! foll[+ new p>agraph3 
7#cd7 ! cr$it = qualifi$ contributions  
det]m9$ "u section #de,u7a74  4  7e7    
,cl]ical am5dm5t ,! table ( sections =  
subp>t ,d ( "p ,,iv ( sub*apt] ,a (     
*apt] #a is am5d$ by add+ at ! end !    
foll[+ new item3  ,sec4 #de,u4          
,contributions to eligible              

s*ol>%ip-grant+ organizations4  4  7f7  
,effective date ,! am5dm5ts made by ?is 
section %all apply to taxable ye>s      
beg9n+ aft] ,decemb] #ca1 #bjbj4  #bjb4 
,education ,fre$om ,s*ol>%ips web portal
 & adm9i/ration  7a7 ,9 g5]al ,!        
,secret>y ( ,treasury %all1 9           
coord9ation ) ! ,secret>y ( ,education1 
e/abli%1 ho/1 & ma9ta9 a web portal t-- 
7#a7 li/s all eligible s*ol>%ip-grant+  
organizations2  7#b7 enables a taxpay]  
to make a qualify+ contribution to "o or
 m eligible s*ol>%ip-grant+             
organizations & to imm$iately obta9 bo? 
a pre-approval ( a tax cr$it = t        
contribution & a receipt = tax fil+s2   
7#c7 provides in=mation ab\t ! tax      
b5efits "u sections #be;,e & #de,u ( !  
,int]nal ,rev5ue ,code ( #aihf2 &  7#d7 
enables a ,/ate to submit & update      
in=mation ab\t its programs & its       
eligible s*ol>%ip-grant+ organizations =
 in=mational purposes only1 includ+     
in=mation on-- 7,a7 /ud5t eligibility2  
7,b7 all[able educational exp5ses2  7,c7

 ! types ( all[able education provid]s2 
7,d7 ! p]c5tage ( funds an organization 
may use = program adm9i/ration2 &  7,e7 
! p]c5tage ( total contributions !      
organization aw>ds 9 a cal5d> ye>4  7b7 
,nonportal contributions ,a taxpay] may 
opt to make a contribution directly to  
an eligible s*ol>%ip-grant+             
organization1 in/ead ( ?r\gh ! web      
portal describ$ 9 subsection 7a71       
provid$ t ! taxpay]1 or ! eligible      
s*ol>%ip-grant+ organization on behalf (
 ! taxpay]1 applies =1 & receives       
pre-approval = a tax cr$it f ! ,secret>y
 ( ,treasury 9 coord9ation ) ! ,secret>y
 ( ! ,education4  7c7 ,national & ,/ate 
limitations on cr$its  7#a7 ,national   
limitation ,= ea* fiscal ye>1 ! total   
am\nt ( qualify+ contributions = :i* a  
cr$it is all[$ "u sections #be;,e &     
#de,u ( ! ,int]nal ,rev5ue ,code ( #aihf
 %all n exce$ #e1jjj1jjj1jjj4  7#b7     
,allocation ( limitation  7,a7 ,initial 
allocations ,= ea* cal5d> ye>1 ) respect
 to ! limitation "u p>agraph 7#a71 !    

,secret>y ( ! ,treasury1 9 consultation 
) ! ,secret>y ( ,education1 %all-- 7i7  
allocate to ea* ,/ate an am\nt equal to 
! sum ( ! qualify+ contributions made 9 
! ,/ate 9 ! previ\s ye>2 &  7ii7 f any  
am\nts rema9+ foll[+ allocations made "u
 clause 7i71 allocate to ea* p>ticipat+ 
,/ate an am\nt t be>s ! same relation to
 su* rema9+ am\nt z ! numb] (           
individuals ag$ #e ?r\gh #ai 9 ! ,/ate1 
z det]m9$ by ! ,secret>y ( ,education on
 ! basis ( ! mo/ rec5t satisfactory     
data1 be>s to ! numb] ( ^? individuals1 
z s det]m9$1 9 all su* ,/ates1 z s      
det]m9$4  7,b7 ,m9imum allocation       
,not)/&+ subp>agraph 7,a71 no ,/ate     
receiv+ an allocation "u ?is section may
 receive less ?an "o-half ( #a p]c5t ( !
 am\nt allocat$ = a fiscal ye>4  7,c7   
,alt]native allocation  7i7 ,9 g5]al ,n 
lat] ?an ! end ( ! fif? ye> ( ! program 
or #a ye> aft] ! end ( ! fir/ fiscal ye>
 = :i* ! total am\nt ( cr$its claim$ "u 
section #be;,e & section #de,u ( !      
,int]nal ,rev5ue ,code ( #aihf is       

#b1ejj1jjj1jjj or m1 :i*ev] comes fir/1 
! ,secret>y ( ! ,treasury1 9            
consultation ) ! ,secret>y ( ,education1
 %all1 by regulation1 provide = an      
alt]native allocation me?od t %all take 
effect beg9n+ ) ! fir/ fiscal ye> aft]  
su* regulation takes effect4  7ii7      
,alt]native allocation me?od ,!         
alt]native allocation me?od %all be     
express$ z a =mula bas$ on a comb9ation 
( ! foll[+ data = ea* ,/ate1 z report$  
by ! ,/ate to ! ,secret>y ( ,treasury3  
7,i7 ,! relative p]c5tage ( /ud5ts 9 !  
,/ate :o receive an elem5t>y or second>y
 s*ol>%ip ?r\gh a ,/ate program t is    
f9anc$ ?r\gh ,/ate tax-cr$it$ donations 
or appropriations & t p]mits ! elem5t>y 
or second>y s*ol>%ip to be us$ to att5d 
a private s*ool4  7,,ii7 ,! total am\nt 
( all elem5t>y & second>y s*ol>%ips     
aw>d$ ?r\gh a ,/ate program t is f9anc$ 
?r\gh ,/ate tax-cr$it$ donations or     
appropriations comp>$ to ! total am\nt (
 curr5t ,/ate & local exp5ditures = free
 public education 9 ! ,/ate4  7iii7     

,allocation =mula ,= any fiscal ye> to  
:i* clause 7i7 applies1 ! ,secret>y (   
,treasury1 9 consultation ) ! ,secret>y 
( ,education1 %all-- 7,i7 = ea* ,/ate1  
allocate an am\nt equal to ! sum ( !    
qualify+ contributions made 9 ! ,/ate 9 
! previ\s ye>2  7,,ii7 allocate #b_/c ( 
! rema9+ am\nt 7aft] application (      
subclause 7,i77 ( ! national limitation 
= t ye> us+ ! alt]native allocation     
me?od "u clause 7ii72 &  7,,iii7        
allocate #a_/c ( ! rema9+ am\nt 7aft]   
application ( subclause 7,i7 & 7,,ii77 9
 accordance ) subp>agraph 7,a77ii74     
7iv7 ,ineligibility ,= any fiscal ye> to
 :i* clause 7i7 applies1 a ,/ate t does 
n provide ! ,secret>y ( ! ,treasury )   
in=mation describ$ 9 clause 7ii7 is n   
eligible to receive an allocation ?r\gh 
! alt]native allocation me?od "u su*    
clause4  7#c7 ,all[able p>tn]%ips ,a    
,/ate may *oose to adm9i/] ! allocation 
x receives "u p>agraph 7#b7 9 p>tn]%ip )
 "o or m ,/ates1 provid$ t ! eligible   
s*ol>%ip-grant+ organizations 9 ea*     

p>tn] ,/ate s]ve /ud5ts :o reside 9 all 
,/ates 9 ! p>tn]%ip4  7#d7 ,allocation &
 adju/m5ts  7,a7 ,initial allocation to 
,/ates ,n lat] ?an ,novemb] #a ( ! ye>  
prec$+ a ye> = :i* !re is a national    
limitation on cr$its "u p>agraph 7#a7   
7ref]r$ to 9 ?is section z ! applicable 
ye>71 or z e>ly z practicable ) respect 
to ! fir/ ye>1 ! ,secret>y ( ! ,treasury
 %all ann\nce ! ,/ate allocations "u    
p>agraph 7#b7 = ! applicable ye>4  7,b7 
,li/ ( eligible s*ol>%ip-grant+         
organizations  7i7 ,9 g5]al ,n lat] ?an 
,janu>y #a ( ea* applicable ye>1 or z   
e>ly z practicable ) respect to ! fir/  
ye>1 ea* ,/ate %all provide ! ,secret>y 
( ! ,treasury a li/ ( eligible          
s*ol>%ip-grant+ organizations1 includ+ a
 c]tification t ! entity submitt+ ! li/ 
on behalf ( ! ,/ate has ! au?ority to   
p]=m ?is function4  7ii7 ,rule (        
con/ruction ,nei!r ?is section nor any  
o!r ,f$]al law %all be con/ru$ z limit+ 
! entities t may submit ! li/ on behalf 
( a ,/ate4  7,c7 ,reallocation (        

unclaim$ cr$its ,! ,secret>y ( !        
,treasury %all reallocate a ,/ate's     
allocation to o!r ,/ates1 9 accordance )
 p>agraph 7#b71 if ! ,/ate-- 7i7 *ooses 
n to id5tify s*ol>%ip-grant+            
organizations "u subp>agraph 7,b7 9 any 
applicable ye>2 or  7ii7 does n h an    
exi/+ eligible s*ol>%ip-grant+          
organization4  7,d7 ,reallocation ,on or
 aft] ,april #a ( any applicable ye>1 ! 
,secret>y ( ! ,treasury may reallocate1 
to "o or m o!r ,/ates t h eligible      
s*ol>%ip-grant+ organizations 9 !       
,/ates1 )\t reg>d to p>agraph 7#b71 !   
allocation ( a ,/ate = :i* ! ,/ate's    
allocation has n be5 claim$4  7d7       
,def9itions ,any t]m us$ 9 ?is section  
:i* is also us$ 9 section #be;,e ( !    
,int]nal ,rev5ue ,code ( #aihf %all h ! 
same mean+ z :5 us$ 9 su* section4  7e7 
,au?orization ( appropriations ,!re are 
au?oriz$ to be appropriat$ #ej1jjj1jjj  
to c>ry out section #bjb7;a7 ( ?is ,act4