,i  #aag? ,,congress  #a/ ,session  ,h4 
,r4 #hhi  ,,9 ,,! ,,h\se ,,(            
,,repres5tatives  ,febru>y #e1 #bjba,mr4
 ,ow5s 7= himself1 ,mr4 ,all51 ,mr4     
,ad]holt1 ,mrs4 ,lesko1 ,mr4 ,la,malfa1 
,mr4 ,lamborn1 ,mr4 ,gaetz1 ,mr4 ,posey1
 ,mr4 ,web/] ( ,florida1 ,mr4 ,hice (   
,georgia1 ,mr4 ,baird1 ,mr4 ,gu?rie1    
,mr4 ,mool5a>1 ,mr4 ,gue/1 ,ms4 ,foxx1  
,mr4 ,bi%op ( ,nor? ,c>ol9a1 ,mr4 ,budd1
 ,mr4 ,*abot1 ,mr4 ,jordan1 ,mr4 ,latta1
 ,mr4 ,/iv]s1 ,mr4 ,p]ry1 ,mr4 ,kell]1  
,mr4 ,joyce ( ,p5nsylvania1 ,mr4 ,wilson
 ( ,s\? ,c>ol9a1 ,mr4 ,norman1 ,mr4     
,rice ( ,s\? ,c>ol9a1 ,mr4 ,des,jarlais1
 ,mr4 ,jackson1 ,mr4 ,web] ( ,texas1    
,mr4 ,cl9e1 & ,mr4 ,gallagh]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 am5d ! ,int]nal ,rev5ue    

,code ( #aihf to e/abli% tax cr$its to  
enc\rage individual & corporate taxpay]s
 to contribute to s*ol>%ips = elem5t>y &
 second>y /ud5ts ?r\gh eligible         
s*ol>%ip-grant+ organizations1 & = o!r  
purposes4  #a4 ,%ort title ,?is ,act may
 be cit$ z ! ,education ,fre$om         
,s*ol>%ips & ,opportunity ,act4  #b4    
,purpose ,! purpose ( ?is ,act is to    
enc\rage individual & corporate taxpay]s
 to contribute to s*ol>%ips = individual
 elem5t>y & second>y /ud5ts ?r\gh       
eligible s*ol>%ip-grant+ organizations1 
z id5tifi$ 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  

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  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
 = 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+         
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 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#c7
 ,secret>y ,! t]m ,secret>y means !     
,secret>y ( ,education4  7#d7 ,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;a72  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$2 or  7,,ii7 9 ! case ( !     
,bureau ( ,indian ,education1 are memb]s
 ( a f$]ally recogniz$ tribe2  7iii7 a  
,/ate reports to ! ,secret>y z an       
eligible s*ol>%ip-grant+ organization "u
 subsection 7e77#e77;,b72  7iv7         
allocates at lea/ #ij p]c5t ( qualifi$  
contributions to qualify+ s*ol>%ips2 &  

7v7 provides 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 "o         
education provid]2 or  7,b7 an          
organization t-- 7i7 is describ$ 9      
section #eja7;c77#c7 & exempt f taxation
 "u section #eja7;a72 &  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#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 "u
 ?is section or section #de,t4  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 ( 
#aife71 & ! ,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*ool 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 ( ! *ild or 8 or h]
 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  
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 "* 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 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 ( ! ,treasury
 %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 or      
section #de,t 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+ 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  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  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+ organizations4 
4  ,,ii ,education ,fre$om ,s*ol>%ips   
web portal & adm9i/ration  #bja4        
,education ,fre$om ,s*ol>%ips web portal
 & adm9i/ration  7a7 ,9 g5]al ,!        
,secret>y ( ,education %all1 9          
coord9ation ) ! ,secret>y ( ! ,treasury1
 e/abli%1 ho/1 & ma9ta9 a web portal t--
 7#a7 li/s all s*ol>%ip-grant+          
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 & 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 ( ,education ,fre$om ,s*ol>%ips 

"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$it f ! ,secret>y
 ( ,education 9 coord9ation ) !         
,secret>y ( ! ,treasury4  7c7 ,national 
& ,/ate caps on cr$its  7#a7 ,national  
cap ,!re is a cap ( #e1jjj1jjj1jjj on ! 

sum ( ! contributions t qualify = a     
cr$it "u section #be;,e & section #de,t 
( ! ,int]nal ,rev5ue ,code ( #aihf = ea*
 cal5d> ye>4  7#b7 ,allocation ( cap    
7,a7 ,initial allocations ,= ea* cal5d> 
ye>1 ! ,secret>y %all-- 7i7 fir/ res]ve1
 = ea* ,/ate1 an am\nt equal to ! sum ( 
! qualify+ contributions made 9 ! ,/ate 
9 ! previ\s ye>2 &  7ii7 next1 allocate 
! rema9+ am\nt among ! p>ticipat+ ,/ates
 by allocat+ to ea* ,/ate ! sum (-- 7,i7
 an am\nt t be>s ! same relation%ip to  
#bj p]c5t ( su* rema9+ am\nt z ! numb] (
 individuals ag$ #e ?r\gh #ag 9 ! ,/ate1
 z det]m9$ by ! ,secret>y 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>y1 on ! basis ( ! mo/ rec5t     
satisfactory data1 be>s to ! numb] ( ^? 
individuals 9 all su* ,/ates1 z s       

det]m9$4  7,b7 ,m9imum allocation       
,not)/&+ subp>agraph 7,a71 no ,/ate     
receiv+ an allotm5t "u ?is section may  
receive less ?an "o-half ( "o p]c5t ( ! 
am\nt allott$ = a fiscal ye>4  7,c7     
,alt]native allocation  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 is       
#b1ejj1jjj1jjj or m1 :i*ev] comes fir/1 
! ,secret>y %all1 by regulation1 provide
 = an alt]native allocation me?od t %all
 take effect beg9n+ ) ! fir/ fiscal ye> 
aft] ! 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>y3 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     
%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 ) 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 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 %all ann\nce ! ,/ate   
allocations "u p>agraph 7#b7 = !        
applicable ye>4  7,b7 ,li/ ( eligible   
s*ol>%ip-grant+ 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
 a li/ ( eligible s*ol>%ip-grant+       
organizations describ$ 9 section        
#be;,e7c77#d77;,a7 ( ! ,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 ( unclaim$ 
cr$its ,! ,secret>y %all reallocate a   
,/ate's allocation to o!r ,/ates1 9     
accordance ) p>agraph 7#b71 if ! ,/ate--
 7i7 *ooses n to id5tify s*ol>%ip-grant+
 organizations "u subp>agraph 7,b7 9 any
 applicable ye>2 or  7ii7 does n h an   
exi/+ eligible s*ol>%ip-grant+          
organization 7z def9$ 9 section         
#be;,e7c77#d77;,b7 ( ! ,int]nal ,rev5ue 
,code ( #aihf74  7,d7 ,reallocation ,on 
or aft] ,april #a ( any applicable ye>1 
! ,secret>y may reallocate1 to #a 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$4  7d7 ,def9itions ,! def9itions (
 t]ms 9 section #be;,e7c7 ( ! ,int]nal  
,rev5ue ,code ( #aihf apply to ^? t]ms z
 us$ 9 ?is title4