,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #fcd  ,,9 ,,! ,,s5ate ,,( ,,!       
,,unit$ ,,/ates  ,febru>y #bh1 #bjai,mr4
 ,cruz 7= himself1 ,mr4 ,scott ( ,s\?   
,c>ol9a1 ,mr4 ,alex&]1 ,ms4 ,ern/1 ,mr4 
,cotton1 & ,mr4 ,toomey7 introduc$ !    
foll[+ bill2 :i* 0 read twice & ref]r$  
to ! ,committee on ,f9ance  ,a ,,bill   
,to am5d ! ,int]nal ,rev5ue ,code (     
#aihf to e/abli% tax cr$its to enc\rage 
individual & corporate taxpay]s to      
contribute to s*ol>%ips = /ud5ts ?r\gh  
eligible s*ol>%ip-grant+ organizations &
 eligible work=ce tra9+ organizations1 &
 = o!r purposes4  #a4 ,%ort title ,?is  
,act may be cit$ z ! ,education ,fre$om 
,s*ol>%ips & ,opportunity ,act4  #b4    
,purpose ,! purpose ( ?is ,act is to    
enc\rage individual & corporate taxpay]s
 to contribute to s*ol>%ips = individual
 /ud5ts ?r\gh eligible s*ol>%ip-grant+  
organizations & eligible work=ce tra9+  
organizations1 z id5tifi$ by ,/ates4  ,i
 ,am5dm5ts to ! ,int]nal ,rev5ue ,code (
 #aihf  #aja4 ,ref]5ces to ! ,int]nal   

,rev5ue ,code ( #aihf ,except z o!rwise 
expressly provid$1 :5ev] 9 ?is title an 
am5dm5t or repeal is express$ 9 t]ms (  
an am5dm5t to1 or repeal (1 a section or
 o!r provision1 ! ref]5ce %all be       
consid]$ to be made to a section or o!r 
provision ( ! ,int]nal ,rev5ue ,code (  
#aihf4  #ajb4 ,tax cr$its =             
contributions to eligible               
s*ol>%ip-grant+ organizations & eligible
 work=ce tra9+ organizations  7a7 ,cr$it
 = individuals  7#a7 ,9 g5]al ,subp>t ,a
 ( "p ,,iv ( sub*apt] ,a ( *apt] #a is  
am5d$ by add+ aft] section #be;,d !     
foll[+ new section3  #be;,e4            
,contributions to eligible              
s*ol>%ip-grant+ organizations & eligible
 work=ce tra9+ organizations  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 ! sum (   
any qualifi$ contributions made by !    
taxpay] dur+ ! taxable ye>4  7b7 ,am\nt 
( cr$it ,! cr$it all[$ "u subsection 7a7

 9 any taxable ye> %all n exce$ #aj     
p]c5t ( ! taxpay]'s adju/$ gross income 
= ! taxable ye>4  7c7 ,def9itions ,=    
purposes ( ?is section-- 7#a7 ,qualifi$ 
contribution ,! t]m qualifi$            
contribution means a contribution ( ca% 
to any eligible s*ol>%ip-grant+         
organization or eligible work=ce tra9+  
organization4  7#b7 ,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  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 #bcjb7e771 or  7,c7 = !      
purpose ( provid+ eligible individual   
p>ticipants ) s*ol>%ips = second>y or   
po/second>y vocational education &      
tra9+1 work=ce developm5t1 or           
appr5tice%ip tra9+1 includ+ prep>ation &
 exam9ation co/s relat+ to portable     

c]tificates or cr$5tials1 or indu/ry    
recogniz$ c]tification or cr$5tial+     
programs4  7#c7 ,eligible               
s*ol>%ip-grant+ organization ,! t]m     
eligible s*ol>%ip-grant+ organization   
means-- 7,a7 an organization t--  7i7 is
 describ$ 9 section #eja7;c77#c7 &      
exempt f taxation "u section #eja7;a71  
7ii7 provides qualify+ s*ol>%ips =      
qualifi$ exp5ses to only 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 reports to ! ,secret>y (          
,education z an eligible s*ol>%ip-grant+
 organization pursuant to section       
#bja7;c77#e77;,b7 ( ! ,education ,fre$om
 ,s*ol>%ips & ,opportunity ,act1  7iv7  
allocates at lea/ #ij p]c5t ( qualifi$  
contributions to qualify+ s*ol>%ips =   
qualifi$ exp5ses1 &  7v7 provides       
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 "o 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 ( !    
date ( ! enactm5t ( ! ,education ,fre$om
 ,s*ol>%ips & ,opportunity ,act1 to     
receive contributions t are eligible = a
 ,/ate tax cr$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#d7 ,eligible  
work=ce tra9+ organization  7,a7 ,9     
g5]al ,! t]m eligible work=ce tra9+     
organization means any organization--   
7i7 :i* is--  7,i7 describ$ 9 section   
#eja7;c77#c7 & exempt f taxation "u     
section #eja7;a71 &  7,,ii7 n a private 
f\ndation 7z def9$ 9 section #eji71     
7ii7 ^: purpose is to provide vocational
 education & tra9+1 work=ce developm5t1 
or appr5tice%ip tra9+ to eligible       

pot5tial second>y or po/second>y /ud5ts1
 includ+ organizations ^: purpose is to 
provide s*ol>%ips = portable c]tificates
 or cr$5tials1 or indu/ry recogniz$     
c]tifications or cred5tial+ programs1   
includ+ prep>ation & exam9ation co/s1   
7iii7 :i* is 9 compliance ) applicable  
,/ate laws1  7iv7 :i* a ,/ate has       
report$ to ! ,secret>y ( ,education z an
 eligible work=ce tra9+ organization    
pursuant to section #bja7;c77#e77;,b7 ( 
! ,education ,fre$om ,s*ol>%ips &       
,opportunity ,act1  7v7 :i* satisfies ! 
requirem5ts describ$ 9 clauses 7iv7 &   
7v7 ( p>agraph 7#c77;,a74  7,b7         
,pot5tial eligible work=ce tra9+        
organizations ,eligible work=ce tra9+   
organizations may include1 b are n      
limit$ to1 organizations su* z ! foll[+ 
7provid$ t su* organizations satisfy !  
requirem5ts "u subp>agraph 7,a773  7i7  
,community colleges4  7ii7 ,work=ce     
tra9+ programs 7z def9$ by ! applicable 
,/ate work=ce ag5cy74  7iii7            
,organizations :i* provide-- 7,i7 c>e] &

 te*nical education1 or  7,,ii7 tra9+ or
 appr5tice%ips1 includ+1 b n limit$ to1 
tra9+ or appr5tice%ips op]at$ by a      
collective b>ga9+ organization or t     
provide indu/ry recogniz$ c]tifications 
or cr$5tials4  7iv7 ,community          
organizations t provide tra9+ t results 
9 a c]tification4  7#e7 ,qualify+       
s*ol>%ip ,! t]m qualify+ s*ol>%ip       
means--  7,a7 a s*ol>%ip grant$ by an   
eligible s*ol>%ip-grant+ organization to
 an individual elem5t>y or second>y     
/ud5t1 or  7,b7 a s*ol>%ip grant$ by an 
eligible work=ce tra9+ organization z a 
s*ol>%ip to a second>y or po/second>y   
/ud5t = ! purpose ( vocational education
 & tra9+1 work=ce developm5t1 obta9+    
portable c]tificates or cr$5tials1 or   
indu/ry recogniz$ c]tification or       
cr$5tial+ programs1 includ+ prep>ation &
 exam9ation co/s1  "u ?is section4  7#f7
 ,/ate ,! t]m ,/ate means ea* ( ! #ej   
,/ates1 ! ,di/rict ( ,columbia1 !       
,commonweal? ( ,pu]to ,rico1 ,am]ican   
,samoa1 ,guam1 ! ,commonweal? ( !       

,nor!rn ,m>iana ,isl&s1 ! ,unit$ ,/ates 
,virg9 ,isl&s1 & ! ,dep>tm5t ( !        
,int]ior 7act+ ?r\gh ! ,bureau ( ,indian
 ,education74  7d7 ,rules ( con/ruction 
7#a7 ,9 g5]al ,a s*ol>%ip aw>d$ to a    
/ud5t f ! proce$s ( a qualifi$          
contribution "u ?is section or section  
#de,t %all n be consid]$ assi/ance to ! 
s*ool1 eligible work=ce tra9+           
organization1 or o!r educational provid]
 t enrolls1 or provides educational     
s]vices to1 ! /ud5t or ! /ud5t's p>5ts4 
7#b7 ,n treat$ z income ,! am\nt ( any  
su* s*ol>%ip %all n be treat$ z income (
 ! /ud5t or _! p>5ts = purposes ( ,f$]al
 tax laws or = det]m9+ eligibility = any
 o!r ,f$]al program4  7#c7 ,prohibition 
( control ov] nonpublic education       
provid]s  7,a7 ,no?+ 9 ?is ,act %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 ,?is  

,act %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 ,act4  7,b7 ,no?+ 9 ?is  
,act %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 or eligible work=ce tra9+ 
organizations on behalf ( a ,/ate 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 %all    
exclude1 discrim9ate aga9/1 or o!rwise  
disadvantage any education provid] )    
respect to programs or s]vices "u ?is   
,act bas$ 9 :ole or 9 "p on ! provid]'s 
religi\s education "* or affiliation1   
includ+ religi\sly 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
 %all disfavor or disc\rage ! use ( su* 

s*ol>%ips = ! pur*ase ( elem5t>y &      
second>y or work=ce tra9+ 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 or section 
#de,t %all be con/ru$ to modify a ,/ate 
or local gov]nm5t's au?ority &          
responsibility to fund education4  7e7  
,limitations  7#a7 ,tax liability ,no   
cr$it all[$ "u ?is section or section   
#de,t %all exce$ ! taxpay]'s ,f$]al     
income tax liability = ! taxable ye>4   
7#b7 ,prohibitions ,a taxpay] is        
prohibit$ f sell+ or transf]r+ any      
portion ( a tax cr$it all[$ "u ?is      
section or section #de,t4  7#c7 ,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> %all n exce$ ! sum ( ! qualifi$    
contributions made by ! taxpay] = !     

taxable ye>4  7f7 ,c>ryov] ( cr$it ,if a
 tax cr$it all[$ "u ?is section or      
section #de,t 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
  7#b7 ,cl]ical am5dm5t ,! table (      
sections = subp>t ,a ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( 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+ organizations & eligible
 work=ce tra9+ organizations4  4  7b7   
,cr$it = corporations  7#a7 ,9 g5]al    
,subp>t ,d ( "p ,,iv ( sub*apt] ,a (    

*apt] #a is am5d$ by add+ at ! end !    
foll[+ new section3  #de,t4             
,contributions to eligible              
s*ol>%ip-grant+ organizations & eligible
 work=ce tra9+ organizations  7a7       
,all[ance ( cr$it ,= purposes ( section 
#ch1 9 ! case ( a dome/ic corporation1  
!re %all be all[$ 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#a77 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;,e1 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  7#b7 ,cr$it "p (   
g5]al bus9ess cr$it ,section #ch7;b7 is 
am5d$-- 7,a7 by /rik+ plus at ! end (   
p>agraph 7#ca71  7,b7 by /rik+ ! p]iod  
at ! end ( p>agraph 7#cb7 & ins]t+ 1    
plus1 &  7,c7 by add+ at ! end ! foll[+ 
new p>agraph3  7#cc7 ! cr$it = qualifi$ 
contributions det]m9$ "u section        
#de,t7a74  4  7#c7 ,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,t4 ,contributions to eligible       
s*ol>%ip-grant+ organizations & eligible
 work=ce tra9+ organizations4  4  ,,ii  
,education ,fre$om ,s*ol>%ips &         
,opportunity ,act web portal &          
adm9i/ration  #bja4 ,education ,fre$om  
,s*ol>%ips & ,opportunity ,act web      
portal & adm9i/ration  7a7 ,9 g5]al ,!  
,secret>y ( ,education %all1 9          
coord9ation ) ! ,secret>y ( ! ,treasury 
& ! ,secret>y ( ,labor1 e/abli%1 ho/1 & 
ma9ta9 a ,web portal t--  7#a7 li/s all 

s*ol>%ip-grant+ organizations & work=ce 
tra9+ organizations t are eligible "u   
section #be;,e or #de,t ( ! ,int]nal    
,rev5ue ,code ( #aihf2  7#b7 enables a  
taxpay] to make a qualify+ contribution 
to "o or m eligible s*ol>%ip-grant+     
organizations & eligible work=ce tra9+  
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 ( ! provisions ( ! ,education   
,fre$om ,s*ol>%ips & ,opportunity ,act  
"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 &
 eligible work=ce tra9+ 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+ organization
 or an eligible work=ce tra9+           
organization1 in/ead ( ?r\gh ! ,web     
portal describ$ 9 subsection 7a71       
provid$ t ! taxpay]1 or ! eligible      
s*ol>%ip-grant+ organization or eligible
 work=ce tra9+ organization on behalf ( 
! taxpay]1 applies =1 & receives        
pre-approval = a tax cr$it f ! ,secret>y
 ( ,education 9 coord9ation ) !         
,secret>y ( ! ,treasury4  7c7 ,national 
& ,/ate caps on cr$its  7#a7 ,national  
cap ,!re is a cap ( #aj1jjj1jjj1jjj on !
 sum ( ! contributions t qualify = a    
cr$it "u section #be;,e & section #de,t 
( ! ,int]nal ,rev5ue ,code ( #aihf = ea*
 cal5d> ye>1 ( :i*--  7,a7              
#e1jjj1jjj1jjj %all be allott$ =        
qualifi$ contributions to eligible      
s*ol>%ip-grant+ organizations2 &  7,b7  
#e1jjj1jjj1jjj %all be allott$ =        
qualifi$ contributions to eligible      

work=ce tra9+ organizations4  7#b7      
,allocation ( cap  7,a7 ,initial        
allocations ,= ea* cal5d> ye>1 !        
,secret>y ( ,education1 9 coord9ation ) 
! ,secret>y ( ,labor1 %all--  7i7 f !   
am\nt allott$ "u p>agraph 7#a77;,a7--   
7,i7 fir/ res]ve1 = ea* ,/ate1 an am\nt 
equal to ! sum ( ! qualify+             
contributions made 9 ! ,/ate 9 ! previ\s
 ye>2 &  7,,ii7 next1 allocate ! rema9+ 
am\nt among ! p>ticipat+ ,/ates by      
allocat+ to ea* ,/ate ! sum (--  7aa7 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$2 &  7bb7 an
 am\nt t be>s ! same relation%ip to #hj 
p]c5t ( su* rema9+ am\nt z ! numb] (    
individuals ag$ #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$2 &  7ii7 f 
! am\nt allott$ "u p>agraph 7#a77;,b7-- 
7,i7 fir/ res]ve1 = ea* ,/ate1 an am\nt 
equal to ! sum ( ! qualify+             
contributions made 9 ! ,/ate 9 ! previ\s
 ye> attributable to eligible work=ce   
tra9+ organizations2 &  7,,ii7 next1    
allocate ! rema9+ am\nt among !         
p>ticipat+ ,/ates by allocat+ to ea*    
,/ate an am\nt det]m9$ ?r\gh a sy/em1 z 
e/abli%$ & ma9ta9$ by ! ,secret>y (     
,labor1 t accurately reflects dem& &    
pot5tial qualifi$ p>ticipants =         
appr5tice%ips & work=ce tra9+ )9 t      
,/ate4  7,b7 ,m9imum allocation ,not)/&+
 subp>agraph 7,a71 no ,/ate receiv+ an  
allotm5t "u ?is section may receive less
 ?an "o-half ( "o p]c5t ( ! am\nt       
allott$ = a fiscal ye>4  7,c7           
,alt]native allocation = qualifi$       
contributions to eligible               
s*ol>%ip-grant+ organizations  7i7 ,9   
g5]al ,n lat] ?an ! end ( ! fif? ye> ( !
 program or "o ye> aft] ! end ( ! fir/  

fiscal ye> = :i* ! total am\nt ( cr$its 
claim$ "u section #be;,e & section #de,t
 ( ! ,int]nal ,rev5ue ,code ( #aihf =   
qualifi$ contributions to eligible      
s*ol>%ip-grant+ organizations is        
#b1ejj1jjj1jjj or m1 :i*ev] comes fir/1 
! ,secret>y ( ,education %all1 by       
regulation1 provide = an alt]native     
allocation me?od = ! am\nt describ$ 9   
p>agraph 7#a77;,a7 t %all take effect   
beg9n+ ) ! fir/ fiscal ye> aft] !       
regulation takes effect4  7ii7          
,alt]native allocation me?od ,!         
alt]native allocation me?od describ$ 9  
clause 7i7 %all be express$ z a =mula   
bas$ on a comb9ation ( ! foll[+ data =  
ea* ,/ate1 z report$ by ! ,/ate to !    
,secret>y ( ,education3  7,i7 ,!        
relative p]c5tage ( /ud5ts 9 ! ,/ate :o 
receive a 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 (   
,education %all-- 7,i7 fir/ res]ve1 =   
ea* ,/ate1 an am\nt equal to ! sum ( !  
qualify+ contributions made 9 ! ,/ate 9 
! previ\s ye>2  7,,ii7 next1 allocate   
two-?irds ( ! rema9+ am\nt ( ! national 
cap = t ye> us+ ! alt]native allocation 
me?od 9 clause 7ii72 &  7,,iii7 !n1     
allocate "o-?ird ( ! rema9+ am\nt 9     
accordance ) subp>agraph 7,a77ii74  7iv7
 ,ineligibility ,= any fiscal ye> to :i*
 clause 7i7 applies1 a ,/ate t does n   
provide ! ,secret>y ( ,education )      
in=mation describ$ 9 clause 7ii7 is n   
eligible to receive an allocation ?r\gh 
! alt]native allocation me?od "u clause 
7ii74  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 )  
#a or m ,/ates1 provid$ t ! eligible    
s*ol>%ip-grant+ organizations or        
eligible work=ce tra9+ 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$ =
 x "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 ,no lat] ?an ,novemb] #a ( ! ye> 
prec$+ a ye> = :i* !re is a national cap
 on cr$its "u p>agraph 7#a7 7h]eaft] 9  
?is section1 ! applicable ye>71 or z    
e>ly z practicable ) respect to ! fir/  
ye>1 ! ,secret>y ( ,education %all      
ann\nce ! ,/ate allocations "u p>agraph 
7#b7 = ! applicable ye>4  7,b7 ,li/ (   
eligible s*ol>%ip-grant+ organizations &
 eligible work=ce tra9+ organizations   
,no 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 ( ,education a li/ ( eligible 
s*ol>%ip-grant+ organizations & eligible
 work=ce tra9+ organizations describ$ 9 
p>agraphs 7#c77;,a7 & 7#d7 ( section    
#be;,e7c7 ( ! ,int]nal ,rev5ue ,code (  
#aihf1 includ+ a c]tification t ! entity
 submitt+ ! li/ on behalf ( ! ,/ate has 
! au?ority to p]=m ?is function4 ,nei!r 
?is ,act 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  7i7 ,9 g5]al ,! ,secret>y
 ( ,education %all1 9 accordance )      
p>agraph 7#b71 reallocate to any o!r    
,/ates ! allocation ( a ,/ate :i*1 = any
 applicable ye>--  7,i7 fails to provide
 ! ,secret>y ( ,education a li/ (       
eligible s*ol>%ip-grant+ organizations &
 eligible work=ce tra9+ organizations   
pursuant to subp>agraph 7,b72 &  7,,ii7 
does n h an eligible s*ol>%ip-grant+    
organization 7z describ$ 9 section      
#be;,e7c77#c77;,b7 ( ! ,int]nal ,rev5ue 
,code ( #aihf7 locat$ 9 su* ,/ate4  7ii7
 ,unclaim$ cr$its ,on or aft] ,april #a 

( any applicable ye>1 ! ,secret>y (     
,education may reallocate1 to #a or m   
o!r ,/ates t h eligible s*ol>%ip-grant+ 
organizations & eligible work=ce tra9+  
organizations 9 ! ,/ates1 )\t reg>d to  
p>agraph 7#b71 ! allocation ( a ,/ate = 
:i* ! ,/ate's allocation has n be5      
claim$4  7d7 ,def9itions ,! def9itions (
 t]ms 9 section #be;,e7c7 ( ! ,int]nal  
,rev5ue ,code ( #aihf apply to ^? t]ms z
 us$ 9 ?is title4  7e7 ,au?orization (  
appropriations ,= ! purpose ( adm9i/]+  
?is section & sections #be;,e & #de,t ( 
! ,int]nal ,rev5ue ,code ( #aihf1 !re   
are au?oriz$ to be appropriat$1 & !re   
are appropriat$1 su* sums z may be      
necess>y = fiscal ye> #bjai & ea*       
succe$+ fiscal ye>4