,,ii  #aaf? ,,congress  #b;d ,session   
,s4 #dbhd  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,july #bb1 #bjbj ,mr4  
,scott ( ,s\? ,c>ol9a 7= himself1 ,mr4  
,alex&]1 & ,mr4 ,cruz7 introduc$ !      
foll[+ bill2 :i* 0 read twice & ref]r$  
to ! ,committee on ,f9ance  ,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$4  7#b7
 ,em]g5cy education fre$om grant funds  

,! t]m em]g5cy education fre$om grant   
funds means ! am\nt ( funds available "u
 subsection 7b77#a7 = ?is section t are 
n res]v$ "u subsection 7c77#a74  7#c7   
,secret>y ,! t]m ,secret>y means !      
,secret>y ( ,education4  7#d7 ,/ate ,!  
t]m ,/ate means ea* ( ! #ej ,/ates1 !   
,di/rict ( ,columbia1 & ! ,commonweal? (
 ,pu]to ,rico4  7b7 ,grants  7#a7       
,program au?oriz$ ,f any am\nts         
appropriat$ = section #ahjjc ( division 
,b ( ! ,,c>es ,act on or aft] ! date (  
enactm5t ( ?is ,act1 ! ,secret>y %all1  
not)/&+ any o!r provision ( title       
,,xviii ( division ,b ( ! ,,c>es ,act   
7,public ,law #aaf-acf71 use #aj p]c5t (
 su* am\nts to c>ry out subsection 7c7 &
 aw>d em]g5cy education fre$om grants to
 ,/ates ) approv$ applications1 9 ord]  
to enable ! ,/ates to aw>d subgrants to 
eligible s*ol>%ip-grant+ organizations  
"u subsection 7d74  7#b7 ,tim+ ,!       
,secret>y %all make ! allotm5ts requir$ 
"u ?is subsection by n lat] ?an #cj days
 aft] ! date ( enactm5t ( ?is ,act4  7c7

 ,res]vation & allotm5ts  7#a7 ,9 g5]al 
,f ! am\nts made available "u subsection
 7b77#a71 ! ,secret>y %all-- 7,a7       
res]ve--  7i7 "o-half ( #a 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 "o-half ( #a p]c5t
 ( su* am\nts = ! ,secret>y ( !         
,int]ior1 act+ ?r\gh ! ,bureau ( ,indian
 ,education1 to be us$ to provide       
subgrants describ$ 9 subsection 7d7 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 ,education2 &  7,b7   
subject to p>agraph 7#b71 allot ea*     
,/ate t submits an approv$ application  
"u ?is section ! sum (-- 7i7 ! am\nt t  
be>s ! same relation to #bj p]c5t ( !   
em]g5cy education fre$om grant funds z !
 numb] ( individuals ag$ #e ?r\gh #ag 9 

! ,/ate1 z det]m9$ by ! ,secret>y on !  
basis ( ! mo/ rec5t satisfactory data1  
be>s to ! numb] ( ^? individuals1 z s   
det]m9$1 9 all su* ,/ates t submitt$    
approv$ applications2 &  7ii7 an am\nt t
 be>s ! same relation%ip to #hj p]c5t ( 
! em]g5cy education fre$om grant funds z
 ! numb] ( individuals ag$ #e ?r\gh #ag 
f families ) incomes bel[ ! pov]ty l9e 9
 ! ,/ate1 z det]m9$ by ! ,secret>y on ! 
basis ( ! mo/ rec5t satisfactory data1  
be>s to ! numb] ( ^? individuals1 z s   
det]m9$1 9 all su* ,/ates t submitt$    
approv$ applications4  7#b7 ,m9imum     
allotm5t ,no ,/ate %all receive an      
allotm5t "u ?is subsection = a fiscal   
ye> t is less ?an #a_/b ( #a p]c5t ( !  
am\nt ( em]g5cy education fre$om grant  
funds available = su* fiscal ye>4  7d7  
,subgrants to eligible s*ol>%ip-,grant+ 
organizations  7#a7 ,9 g5]al ,a ,/ate t 
receives an allotm5t "u ?is section %all
 use ! allotm5t to aw>d subgrants1 on a 
basis det]m9$ appropriate by ! ,/ate1 to
 eligible s*ol>%ip-grant+ organizations 

9 ! ,/ate4  7#b7 ,initial tim+  7,a7    
,/ates ) exi/+ tax cr$it s*ol>%ip       
program ,by n lat] ?an #cj days aft]    
receiv+ an allotm5t "u subsection       
7c77#a77;,b71 a ,/ate ) an exi/+1 z ( ! 
date ( application = an allotm5t "u ?is 
section1 tax cr$it s*ol>%ip program %all
 use n less ?an #ej p]c5t ( ! allotm5t  
to aw>d subgrants to eligible           
s*ol>%ip-grant+ organizations 9 ! ,/ate4
  7,b7 ,/ates )\t tax cr$it s*ol>%ip    
programs ,by n lat] ?an #fj days aft]   
receiv+ an allotm5t "u subsection       
7c77#a77;,b71 a ,/ate )\t a tax cr$it   
s*ol>%ip program %all use n less ?an #ej
 p]c5t ( ! allotm5t to aw>d subgrants to
 eligible s*ol>%ip-grant+ organizations 
9 ! ,/ate4  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 individual elem5t>y s*ool &     
second>y s*ool /ud5ts :o reside 9 !     
,/ate 9 :i* ! eligible s*ol>%ip-grant+  
organization is recogniz$4  7e7         
,reallocation ,a ,/ate %all return to ! 
,secret>y any am\nts ( ! allotm5t       
receiv$ "u ?is section t ! ,/ate does n 
aw>d z subgrants "u subsection 7d7 by   
,m>* #cj1 #bjba1 & ! ,secret>y %all     
reallocate su* funds to ! rema9+        
eligible ,/ates 9 accordance )          
subsection 7c77#a77;,b74  7f7 ,rules (  
con/ruction ,! 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     
individual elem5t>y & second>y /ud5ts   

:o--  7,i7 reside 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 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*ools4  7#b7
 ,qualifi$ contribution ,! t]m qualifi$ 
contribution means a contribution ( ca% 
to any eligible s*ol>%ip-grant+         
organization4  7#c7 ,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#d7
 ,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#e7 ,/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$it ,subject to section   
#bjb7;c7 ( ! ,s*ool ,*oice ,n[ ,act1 =  
purposes ( section #ch1 9 ! case ( a    
dome/ic corporation1 !re %all be all[$ 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 equal to ! sum (-- 7,i7 an am\nt t
 be>s ! same relation%ip to #bj p]c5t ( 
su* rema9+ am\nt z ! numb] ( individuals
 ag$ #e ?r\gh #ag 9 ! ,/ate1 z det]m9$  

by ! ,secret>y ( ,education on ! basis (
 ! mo/ rec5t satisfactory data1 be>s to 
! numb] ( ^? individuals 9 all su*      
,/ates1 z s det]m9$2 &  7,,ii7 an am\nt 
t be>s ! same relation%ip to #hj p]c5t (
 su* rema9+ am\nt z ! numb] (           
individuals ag$ #e ?r\gh #ag f families 
) incomes bel[ ! pov]ty l9e 9 ! ,/ate1 z
 det]m9$ by ! ,secret>y ( ,education1 on
 ! basis ( ! mo/ rec5t satisfactory     
data1 be>s to ! numb] ( ^? individuals 9
 all su* ,/ates1 z s det]m9$4  7,b7     
,m9imum allocation ,not)/&+ subp>agraph 
7,a71 no ,/ate receiv+ an allocation "u 
?is section may receive less ?an #a_/b (
 #a p]c5t ( ! am\nt allocat$ = 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 ,total
 allocation ,a ,/ate's allocation1 = any

 fiscal ye>1 is ! sum ( ! am\nt det]m9$ 
= su* ,/ate "u subp>agraphs 7,a7 & 7,b7 
( p>agraph 7#b71 except z provid$ 9     
p>agraph 7#b77;,c74  7#e7 ,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