,,ii  #aai? ,,congress  #a/ ,session    
,s4 #ahaj  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #bj1 #bjbe,mr4    
,cruz introduc$ ! foll[+ bill2 :i* 0    
read twice & ref]r$ to ! ,committee on  
,f9ance  ,a ,,bill  ,to am5d ! ,int]nal 
,rev5ue ,code ( #aihf to all[ a cr$it   
aga9/ tax = *>itable donations to       
nonpr(it organizations provid+ education
 s*ol>%ips to qualifi$ elem5t>y &       
second>y /ud5ts4  #a4 ,%ort title ,?is  
,act may be cit$ z ! ,univ]sal ,s*ool   
,*oice ,act4  #b4 ,tax cr$it =          
contributions to s*ol>%ip grant+        
organizations  7a7 ,cr$it = individuals 
7#a7 ,9 g5]al ,subp>t ,a ( "p ,,iv (    
sub*apt] ,a ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 aft] section #be;,e ! foll[+ new       
section3  #be;,f4 ,qualifi$ elem5t>y &  
second>y education s*ol>%ips  7a7       
,all[ance ( cr$it ,9 ! case ( an        
individual :o is a citiz5 or resid5t ( !
 ,unit$ ,/ates 7z def9$ 9 section       
#ggja7;a77#i771 !re %all be all[$ z a   

cr$it aga9/ ! tax impos$ by ?is *apt] = 
! taxable ye> an am\nt equal to !       
aggregate am\nt ( qualifi$ contributions
 made by ! taxpay] dur+ ! taxable ye>4  
7b7 ,limitations  7#a7 ,9 g5]al ,! cr$it
 all[$ "u subsection 7a7 to any taxpay] 
= any taxable ye> %all n exce$ an am\nt 
equal to ! great] (-- 7,a7 #aj p]c5t ( !
 adju/$ gross income ( ! taxpay] = !    
taxable ye>1 or  7,b7 #e1jjj4  7#b7     
,application ( volume cap ,no cr$it %all
 be all[$ "u subsection 7a7 to ! taxpay]
 ) respect to ! am\nt ( any qualifi$    
contribution made dur+ a taxable ye> :i*
 w\ld result 9 ! aggregate am\nt (      
cr$its claim$ "u ?is section = su*      
taxable ye> exce$+-- 7,a7 ) respect to  
qualifi$ contributions = :i* ! taxpay]  
is requir$ to designate a di/ribution   
,/ate pursuant to p>agraph 7#d7 (       
section #c7;a7 ( ! ,univ]sal ,s*ool     
,*oice ,act1 ! volume cap allocat$ to   
su* ,/ate pursuant to p>agraph 7#b7 (   
su* section1 or  7,b7 ) respect to      
qualifi$ contributions :i* are n        

describ$ 9 subp>agraph 7,a71 ! volume   
cap made available to taxpay]s pursuant 
to p>agraph 7#c77;,b7 ( su* section4    
7#c7 ,r$uction bas$ on ,/ate cr$it ,!   
am\nt all[$ z a cr$it "u subsection 7a7 
= a taxable ye> %all be r$uc$ by ! am\nt
 all[$ z a cr$it on any ,/ate tax return
 ( ! taxpay] = qualifi$ contributions   
made by ! taxpay] dur+ ! taxable ye>4   
7c7 ,def9itions ,= purposes ( ?is       
section-- 7#a7 ,eligible /ud5t ,! t]m   
eligible /ud5t means an individual :o is
 eligible to enroll 9 a public elem5t>y 
or second>y s*ool4  7#b7 ,qualifi$      
contribution ,! t]m qualifi$            
contribution means a *>itable           
contribution 7z def9$ by section        
#agj7;c77 to a s*ol>%ip grant+          
organization 9 ! =m ( ca% or m>ketable  
securities4  7#c7 ,qualifi$ elem5t>y or 
second>y education exp5se  7,a7 ,9 g5]al
 ,! t]m qualifi$ elem5t>y or second>y   
education exp5se means ! foll[+ exp5ses 
9 connection ) enrollm5t or att5dance   
at1 or = /ud5ts enroll$ at or att5d+1 a 

public or private elem5t>y or second>y  
s*ool 7includ+ a religi\s elem5t>y or   
second>y s*ool73 7i7 ,tuition & requir$ 
fees4  7ii7 ,curricula & curricul>      
mat]ials4  7iii7 ,books or o!r          
in/ructional mat]ials4  7iv7 ,onl9e     
educational mat]ials1 z well z s(tw>e1  
c\rses1 & comput] h>dw>e or o!r         
te*nological devices requir$ to access  
su* mat]ials & :i* is prim>ily us$ =    
educational purposes4  7v7 ,tuition =   
tutor+ or educational classes outside ( 
! home or onl9e1 includ+ at a tutor+    
facility1 b only if ! tutor or in/ructor
 is n relat$ to ! /ud5t &-- 7,i7 is     
lic5s$ z a tea*] 9 any ,/ate1  7,,ii7   
has taught at-- 7aa7 a public or private
 elem5t>y or second>y s*ool1 or  7bb7 an
 in/itution ( high] education 7z def9$ 9
 section #aja7;a7 ( ! ,high] ,education 
,act ( #aife 7#bj ,u4,s4,c4 #ajja7;a7771
 or  7,,iii7 is a subject matt] exp]t 9 
! relevant subject4  7vi7 ,fees = a     
nationally /&>diz$ norm-ref]5c$         
a*ievem5t te/1 an advanc$ placem5t      

exam9ation1 or any exam9ations relat$ to
 admission to an in/itution ( high]     
education4  7vii7 ,fees = dual enrollm5t
 9 an in/itution ( high] education4     
7viii7 ,educational !rapies = /ud5ts )  
disabilities provid$ by a lic5s$ or     
accr$it$ practition] or provid]1 includ+
 occupational1 behavioral1 physical1 &  
spee*-language !rapies4  7ix7           
,transportation co/s incurr$ = /ud5ts to
 p>ticipate 9 any activity = :i* exp5ses
 are au?oriz$ "u ?is p>agraph4  7,b7    
,home s*ool+ ,! t]m qualifi$ elem5t>y or
 second>y education exp5se %all include 
exp5ses = ! purposes describ$ 9 clauses 
7i7 ?r\gh 7ix7 ( subp>agraph 7,a7 9     
connection ) a home s*ool 7:e!r treat$ z
 a home s*ool or a private s*ool =      
purposes ( applicable ,/ate law74  7,c7 
,prohibition on paym5ts to family memb]s
 ,! t]m qualifi$ elem5t>y or second>y   
education exp5se %all n include any     
exp5ses relat$ to s]vices provid$ to !  
/ud5t :i* are provid$ by an individual  
:o be>s a relation%ip to ! /ud5t        

describ$ 9 section #aeb7;d77#b74  7#d7  
,s*ol>%ip grant+ organization  7,a7 ,9  
g5]al ,! t]m s*ol>%ip grant+            
organization means any organization--   
7i7 :i*-- 7,i7 is describ$ 9 section    
#eja7;c77#c7 & exempt f tax "u section  
#eja7;a71 &  7,,ii7 is n a private      
f\ndation1  7ii7 sub/antially all ( !   
activities ( :i* are provid+ s*ol>%ips =
 qualifi$ elem5t>y or second>y education
 exp5ses ( eligible /ud5ts1  7iii7 :i*  
prev5ts ! co-m+l+ ( qualifi$            
contributions ) o!r am\nts by ma9ta9+ #a
 or m sep>ate acc\nts exclusively =     
qualifi$ contributions1 &  7iv7 :i*     
meets ! requirem5ts ( subsection 7d74   
7,b7 ,s*ol>%ips = non-eligible /ud5ts ,=
 purposes ( det]m9+ :e!r an organization
 satisfies ! requirem5t describ$ 9      
subp>agraph 7,a77ii71 su* organization  
may include activities ( :i* are provid+
 s*ol>%ips = education exp5ses ( *ildr5 
:o are n describ$ 9 p>agraph 7#a74  7#e7
 ,/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 ,requirem5ts =       
s*ol>%ip grant+ organizations  7#a7 ,9  
g5]al ,an organization meets !          
requirem5ts ( ?is subsection if-- 7,a7  
su* organization provides s*ol>%ips to  
#b or m /ud5ts1 provid$ t n all su*     
/ud5ts att5d ! same s*ool1  7,b7 )      
respect to any am\nt contribut$ to su*  
organization = :i* a cr$it is all[$ "u  
?is section1 su* organization does n    
provide s*ol>%ips = any exp5ses o!r ?an 
qualifi$ elem5t>y or second>y education 
exp5ses1  7,c7 ) respect to any am\nt   
contribut$ to su* organization = :i* a  
cr$it is all[$ "u ?is section1 su*      
organization provides a s*ol>%ip to     
eligible /ud5ts ) a priority =-- 7i7    
/ud5ts aw>d$ a s*ol>%ip ! previ\s s*ool 
ye>1  7ii7 aft] application ( clause    
7i71 any su* /ud5ts :o h a sibl+ :o 0   

aw>d$ a s*ol>%ip f su* organization1 &  
7iii7 aft] application ( clauses 7i7 &  
7ii71 any su* /ud5ts f h\seholds )      
annual incomes bel[ #ejj p]c5t ( !      
pov]ty l9e 9 ! ,/ate1  7,d7 su*         
organization does n e>m>k or set aside  
contributions = s*ol>%ips on behalf (   
any p>ticul> /ud5t at ! direction ( any 
individual or corporation t has made a  
qualifi$ contribution to su*            
organization1  7,e7 su* organization--  
7i7 obta9s f an indep5d5t c]tifi$ public
 acc\ntant annual f9ancial & compliance 
audits1 &  7ii7 c]tifies to ! ,secret>y 
7at su* "t1 & 9 su* =m & mann]1 z !     
,secret>y may prescribe7 t ! audit      
describ$ 9 clause 7i7 has be5 complet$1 
&  7,f7 no (fic] or bo>d memb] ( su*    
organization has be5 convict$ ( a       
felony4  7#b7 ,income v]ification  7,a7 
,9 g5]al ,= purposes ( p>agraph         
7#a77;,c77iii71 9 ! case :]e provid+ su*
 priority may be applicable ) respect to
 a /ud5t1 ! organization %all take      
appropriate /eps to v]ify ! annual      

h\sehold income to ! /ud5t4  7,b7 ,safe 
h>bor ,= purposes ( subp>agraph 7,a71   
review ( all ( ! foll[+ 7z applicable7  
%all be treat$ z satisfy+ ! requirem5t  
to take appropriate /eps to v]ify annual
 h\sehold income3 7i7 ,f$]al & ,/ate    
income tax returns or tax return        
transcripts ) applicable s*$ules = !    
taxable ye> prior to application4  7ii7 
,income report+ /atem5ts = tax purposes 
or wage & income transcripts f !        
,int]nal ,rev5ue ,s]vice4  7iii7        
,not>iz$ income v]ification lett] f     
employ]s4  7iv7 ,unemploym5t or work]s  
comp5sation /atem5ts4  7v7 ,budget      
lett]s reg>d+ public assi/ance paym5ts &
 ,supplem5tal ,nutrition ,assi/ance     
,program 7,,snap7 paym5ts includ+ a li/ 
( h\sehold memb]s4  7#c7 ,indep5d5t     
c]tifi$ public acc\ntant ,= purposes (  
p>agraph 7#a77;,e71 ! t]m indep5d5t     
c]tifi$ public acc\ntant means1 )       
respect to an organization1 a c]tifi$   
public acc\ntant :o is n a p]son        
describ$ 9 section #dfe7;b77#c77;,a7 )  

respect to su* organization or any      
employee ( su* organization4  7#d7      
,prohibition on self-deal+  7,a7 ,9     
g5]al ,a s*ol>%ip grant+ organization   
may n aw>d a s*ol>%ip to any disqualifi$
 p]son4  7,b7 ,disqualifi$ p]son ,=     
purposes ( ?is p>agraph1 a disqualifi$  
p]son %all be det]m9$ pursuant to rules 
simil> to ! rules ( section #didf4  7e7 
,d5ial ( d\ble b5efit ,any qualifi$     
contribution = :i* a cr$it is all[$ "u  
?is section %all n be tak5 into acc\nt z
 a *>itable contribution = purposes (   
section #agj4  7f7 ,c>ry=w>d ( unus$    
cr$it  7#a7 ,9 g5]al ,if ! cr$it        
all[able "u subsection 7a7 = any taxable
 ye> exce$s ! limitation impos$ by      
section #bf7;a7 = su* taxable ye> r$uc$ 
by ! sum ( ! cr$its all[able "u ?is     
subp>t 7o!r ?an ?is section1 section    
#bc1 & section #be;,d71 su* excess %all 
be c>ri$ to ! succe$+ taxable ye> & add$
 to ! cr$it all[able "u subsection 7a7 =
 su* taxable ye>4  7#b7 ,limitation ,no 
cr$it may be c>ri$ =w>d "u ?is          

subsection to any taxable ye> foll[+ !  
fif? taxable ye> aft] ! taxable ye> 9   
:i* ! cr$it arose4 ,= purposes ( !      
prec$+ s5t5ce1 cr$its %all be treat$ z  
us$ on a fir/-9 fir/-out basis4  7g7    
,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 ,con=m+ am5dm5ts  
7,a7 ,section #be7;e77#a77;,c7 ( su*    
,code is am5d$ by /rik+ & #be;,d &      
ins]t+ #be;,d1 & #be;,f4  7,b7 ,! table 
( sections = subp>t ,a ( "p ,,iv (      
sub*apt] ,a ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ aft] ! item relat+ to   
section #be;,e ! foll[+ new item3  ,sec4
 #be;,f4 ,qualifi$ elem5t>y & second>y  
education s*ol>%ips4  4  7b7 ,cr$it =   
corporations  7#a7 ,9 g5]al ,subp>t ,d (
 "p ,,iv ( sub*apt] ,a ( *apt] #a ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by add+ aft] section #de;,,aa ! foll[+3 
#de;,,bb4 ,contributions to s*ol>%ip    
grant+ organizations  7a7 ,g5]al rule ,=

 purposes ( section #ch1 9 ! case ( a   
corporation1 ! education s*ol>%ip cr$it 
det]m9$ "u ?is section = ! taxable ye>  
is ! aggregate am\nt ( qualifi$         
contributions = ! 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 ( !  
corporation = su* taxable ye>4  7c7     
,qualifi$ contributions ,= purposes (   
?is section1 ! t]m qualifi$ contribution
 has ! mean+ giv5 su* t]m "u section    
#be;,f4  7d7 ,d5ial ( d\ble b5efit ,no  
d$uction %all be all[$ "u any provision 
( ?is *apt] = any exp5se = :i* a cr$it  
is all[$ "u ?is section4  7e7           
,application ( volume cap ,a qualifi$   
contribution %all be tak5 into acc\nt "u
 ?is section only if su* contribution is
 n 9 excess ( ! volume cap e/abli%$ "u  
section #c ( ! ,univ]sal ,s*ool ,*oice  
,act4  4  7#b7 ,con=m+ am5dm5ts ,section
 #ch7;b7 ( su* ,code is am5d$ by /rik+  
plus at ! end ( p>agraph 7#dj71 by /rik+

 ! p]iod & ins]t+ 1 plus at ! end (     
p>agraph 7#da71 & by add+ at ! end !    
foll[+ new p>agraph3  7#db7 ! education 
s*ol>%ip cr$it det]m9$ "u section       
#de;,,bb7a74  4  7#c7 ,cl]ical am5dm5t  
,! table ( sections = subp>t ,d ( "p    
,,iv ( sub*apt] ,a ( *apt] #a ( su*     
,code is am5d$ by add+ at ! end ! foll[+
 new item3  ,sec4 #de;,,bb4             
,contributions to s*ol>%ip grant+       
organizations4  4  7c7 ,failure (       
s*ol>%ip grant+ organizations ,to make  
di/ributions  7#a7 ,9 g5]al ,*apt] #db (
 su* ,code is am5d$ by add+ at ! end !  
foll[+ new sub*apt]3  ,i ,s*ol>%ip      
,grant+ ,organizations  ,sec4 #difi4    
,failure to di/ribute receipts4  #difi4 
,failure to di/ribute receipts  7a7 ,9  
g5]al ,9 ! case ( any s*ol>%ip grant+   
organization 7z def9$ 9 section #be;,f7 
:i* has be5 det]m9$ by ! ,secret>y to h 
fail$ to satisfy ! requirem5t "u        
subsection 7b7 = any taxable ye>1 any   
contribution made to su* organization   
dur+ ! fir/ taxable ye> beg9n+ aft] !   

date ( su* det]m9ation %all n be treat$ 
z a qualifi$ contribution 7z def9$ 9    
section #be;,f7c77#b77 = purposes (     
sections #be;,f & #de;,,bb4  7b7        
,requirem5t  7#a7 ,9 g5]al ,! requirem5t
 describ$ 9 ?is subsection is t ! am\nt 
( receipts ( ! s*ol>%ip grant+          
organization = ! taxable ye> :i* are    
di/ribut$ be=e ! di/ribution deadl9e )  
respect to su* receipts %all n be less  
?an ! requir$ di/ribution am\nt )       
respect to su* taxable ye>4  7#b7       
,di/ribution deadl9e ,! di/ribution     
deadl9e ) respect to receipts = a       
taxable ye> is ! fir/ day ( ! ?ird      
taxable ye> foll[+ ! taxable ye> 9 :i*  
su* receipts are receiv$ by ! s*ol>%ip  
grant+ organization4  7c7 ,def9itions ,=
 purposes ( ?is section-- 7#a7 ,requir$ 
di/ribution am\nt  7,a7 ,9 g5]al ,!     
requir$ di/ribution am\nt ) respect to a
 taxable ye> is ! am\nt equal to #ajj   
p]c5t ( ! total receipts ( ! s*ol>%ip   
grant+ organization = su* taxable ye>1 z
 r$uc$ by ! sum ( su* receipts t are    

reta9$ = reasonable adm9i/rative exp5ses
 = ! taxable ye>4  7,b7 ,safe h>bor =   
reasonable adm9i/rative exp5ses ,=      
purposes ( subp>agraph 7,a71 if !       
p]c5tage ( total receipts ( a s*ol>%ip  
grant+ organization = a taxable ye> :i* 
are us$ = adm9i/rative purposes is equal
 to or less ?an #aj p]c5t1 su* exp5ses  
%all be deem$ to be reasonable =        
purposes ( su* subp>agraph4  7#b7       
,di/ributions ,! t]m di/ribution        
includes am\nts :i* are =mally committ$ 
b n di/ribut$4 ,a =mal commitm5t        
describ$ 9 ! prec$+ s5t5ce may include  
contributions set aside = eligible      
/ud5ts = m ?an #a ye>4  4  7#b7 ,cl]ical
 am5dm5t ,! table ( sub*apt]s = *apt]   
#db ( su* ,code is am5d$ by add+ at !   
end ! foll[+ new item3  ,sub*apt] ,i4   
,s*ol>%ip ,grant+ ,organizations  4  7d7
 ,effective date ,! am5dm5ts made by ?is
 section %all apply to taxable ye>s end+
 aft] ,decemb] #ca1 #bjbe4  #c4 ,volume 
cap  7a7 ,9 g5]al  7#a7 ,national ,cap  
,= purposes ( sections #be;,f7b77#b7 &  

#de;,,bb7e7 ( ! ,int]nal ,rev5ue ,code (
 #aihf 7z add$ by ?is ,act71 ! volume   
cap applicable "u ?is section %all be   
#aj1jjj1jjj1jjj = cal5d> ye> #bjbf & ea*
 subsequ5t ye> !reaft]4  7#b7           
,allocation ( cap  7,a7 ,9 g5]al ,= ea* 
cal5d> ye>1 ! ,secret>y %all1 f ! am\nt 
allott$ "u p>agraph 7#a7-- 7i7 subject  
to subp>agraph 7,c71 fir/ res]ve1 = ea* 
,/ate1 an am\nt equal to ! sum ( !      
qualify+ contributions designat$ "u     
p>agraph 7#d7 ) respect to su* ,/ate 9 !
 prec$+ ye>2 &  7ii7 next1 allocate !   
rema9+ am\nt among ! ,/ates by allocat+ 
to ea* ,/ate ! sum (-- 7,i7 an am\nt t  
be>s ! same relation%ip to #bj p]c5t (  
su* rema9+ am\nt z ! numb] ( individuals
 ag$ #e ?r\gh #ag 9 ! ,/ate1 z det]m9$  
by ! ,secret>y 79 coord9ation ) !       
,secret>y ( ,education7 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 79 coord9ation ) ! ,secret>y (
 ,education71 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 cal5d> ye>4  7,c7     
,initial ye> ,= purposes ( ! fir/ cal5d>
 ye> ) respect to :i* ?is section       
applies1 ! am\nt allocat$ to ea* ,/ate  
"u ?is p>agraph %all be det]m9$ )\t     
respect to subp>agraph 7,a77i74  7#c7   
,allocation & adju/m5ts  7,a7 ,initial  
allocation to ,/ates ,no lat] ?an       
,novemb] #a ( ! ye> prec$+ a ye> = :i*  
!re is a volume cap on cr$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 

,reallocation ( unclaim$ cr$its ,on or  
aft] ,july #ca ( any applicable ye>1 !  
,secret>y %all-- 7i7 make available any 
am\nts ( ! volume cap :i* 7 allocat$ to 
,/ates "u p>agraph 7#b7 & :i* h n be5   
claim$2 &  7ii7 allocate su* am\nts on a
 fir/-come1 fir/-s]ve basis1 z det]m9$  
bas$ on ! "t 7dur+ su* cal5d> ye>7 at   
:i* ! taxpay] made ! qualifi$           
contribution ) respect to :i* !         
allocation is made4  7#d7 ,designation  
by taxpay]  7,a7 ,9 g5]al ,= purposes ( 
det]m9+ ! am\nt ( ! volume cap allocat$ 
to a ,/ate "u p>agraph 7#b7 = any cal5d>
 ye> :i* has be5 claim$ by taxpay]s1 !  
,secret>y %all-- 7i7 z "p ( ! sy/em     
describ$ 9 subsection 7c71 require ea*  
taxpay] mak+ a qualifi$ contribution to 
designate ! di/ribution ,/ate ) respect 
to su* contribution2 &  7ii7 = ea* ,/ate
 :i* an allocation has be5 made "u      
p>agraph 7#b71 ensure t ! total am\nt ( 
qualifi$ contributions designat$ )      
respect to su* ,/ate pursuant to clause 
7i7 dur+ su* cal5d> ye> does n exce$ !  

am\nt ( ! volume cap allocat$ to a ,/ate
 = su* cal5d> ye>4  7,b7 ,b9d+ on       
s*ol>%ip grant+ organization ,!         
designation by ! taxpay] ( ! di/ribution
 ,/ate pursuant to subp>agraph 7,a77i7  
%all be b9d+ on ! s*ol>%ip grant+       
organization = purposes ( any           
di/ribution ( ! qualifi$ contribution   
made by su* taxpay]4  7,c7 ,di/ribution 
,/ate ,= purposes ( ?is section1 ! t]m  
di/ribution ,/ate means ! ,/ate = :i* ! 
s*ol>%ip grant+ organization %all1      
pursuant to ! requirem5ts "u section    
#difi ( ! ,int]nal ,rev5ue ,code (      
#aihf1 be requir$ to make di/ributions )
 respect to eligible /ud5ts resid+ 9 su*
 ,/ate4  7,d7 ,exception = adm9i/rative 
exp5ses ,! requirem5ts applicable to a  
s*ol>%ip grant+ organization "u         
subp>agraphs 7,b7 & 7,c7 %all n apply to
 su* portion ( ! qualifi$ contributions 
receiv$ by su* organization t are us$ = 
adm9i/rative purposes 7z describ$ 9     
section #difi7;c77#a77;,b7 ( ! ,int]nal 
,rev5ue ,code ( #aihf74  7b7 ,annual    

increases  7#a7 ,9 g5]al ,9 ! case ( !  
cal5d> ye> aft] a high use cal5d> ye>1 !
 doll> am\nt o!rwise 9 effect "u        
subsection 7a7 = su* cal5d> ye> %all be 
equal to #aje p]c5t ( ! doll> am\nt 9   
effect = su* high use cal5d> ye>4  7#b7 
,high use cal5d> ye> ,= purposes ( ?is  
subsection1 ! t]m high use cal5d> ye>   
means any cal5d> ye> = :i* #ij p]c5t or 
m ( ! volume cap 9 effect = su* cal5d>  
ye> "u subsection 7a7 is allocat$ to    
taxpay]s4  7#c7 ,prev5tion ( decreases 9
 annual volume cap ,! volume cap 9      
effect "u subsection 7a7 = any cal5d>   
ye> %all n be less ?an ! volume cap 9   
effect "u su* subsection = ! prec$+     
cal5d> ye>4  7#d7 ,publication ( annual 
volume cap ,! ,secret>y %all make       
publicly available ! doll> am\nt ( !    
volume cap 9 effect "u subsection 7a7 = 
ea* cal5d> ye>4  7c7 ,real-,"t in=mation
 ,= purposes ( ?is section1 ! ,secret>y 
%all develop a sy/em to track ! am\nt ( 
qualifi$ contributions made dur+ !      
cal5d> ye> = :i* a cr$it may be claim$  

"u section #be;,f or #de;,,bb ( !       
,int]nal ,rev5ue ,code ( #aihf1 ) su*   
in=mation to be updat$ 9 real "t4  7d7  
,def9ition ,= purposes ( ?is section1 ! 
t]m ,secret>y means ! ,secret>y ( !     
,treasury 7or ! ,secret>y's delegate7   
#d4 ,exemption f gross income =         
s*ol>%ips = qualifi$ elem5t>y or        
second>y education exp5ses ( eligible   
/ud5ts  7a7 ,9 g5]al ,"p ,,iii (        
sub*apt] ,b ( *apt] #a ( ! ,int]nal     
,rev5ue ,code ( #aihf is am5d$ by ins]t+
 be=e section #adj ! foll[+ new section3
  #aci;,j4 ,s*ol>%ips = qualifi$        
elem5t>y or second>y education exp5ses (
 eligible /ud5ts  7a7 ,9 g5]al ,9 ! case
 ( an individual1 gross income %all n   
include any am\nts provid$ to any       
dep5d5t ( su* individual pursuant to a  
s*ol>%ip = qualifi$ elem5t>y or second>y
 education exp5ses ( an eligible /ud5t  
:i* is provid$ by a s*ol>%ip grant+     
organization4  7b7 ,def9itions ,9 ?is   
section1 ! t]ms qualifi$ elem5t>y or    
second>y education exp5se1 eligible     

/ud5t1 & s*ol>%ip grant+ organization h 
! same mean+ giv5 su* t]ms "u section   
#be;,f7c74  4  7b7 ,con=m+ am5dm5t ,!   
table ( sections = "p ,,iii ( sub*apt]  
,b ( *apt] #a ( ! ,int]nal ,rev5ue ,code
 ( #aihf is am5d$ by ins]t+ be=e ! item 
relat+ to section #adj ! foll[+ new     
item3  ,sec4 #aci;,j4 ,s*ol>%ips =      
qualifi$ elem5t>y or second>y education 
exp5ses ( eligible /ud5ts4  4  7c7      
,effective date ,! am5dm5ts made by ?is 
section %all apply to am\nts receiv$    
aft] ,decemb] #ca1 #bjbe1 9 taxable ye>s
 end+ aft] su* date4  #e4               
,organizational & p>5tal autonomy  7a7  
,prohibition ( control ov] s*ol>%ip     
organizations  7#a7 ,9 g5]al  7,a7      
,treatm5t ,a s*ol>%ip grant+            
organization %all n1 by virtue (        
p>ticipation "u any provision ( ?is ,act
 or any am5dm5t made by ?is ,act1 be    
reg>d$ z act+ on behalf ( any gov]nm5tal
 entity4  7,b7 ,no gov]nm5tal control   
,no?+ 9 ?is ,act1 or any am5dm5t made by
 ?is ,act1 %all be con/ru$ to p]mit1    

all[1 enc\rage1 or au?orize any ,f$]al1 
,/ate1 or local gov]nm5t entity1 or     
(fic] or employee !re(1 to m&ate1       
direct1 or control any aspect ( any     
s*ol>%ip grant+ organization4  7,c7     
,maximum fre$om ,to ! ext5t p]missible  
by law1 ?is ,act1 & any am5dm5t made by 
?is ,act1 %all be con/ru$ to all[       
s*ol>%ip grant+ organizations maximum   
fre$om to provide = ! ne$s ( !          
p>ticipants )\t gov]nm5tal control4     
7#b7 ,prohibition ( control ov]         
non-public s*ools  7,a7 ,no gov]nm5tal  
control ,no?+ 9 ?is ,act1 or any am5dm5t
 made by ?is ,act1 %all be con/ru$ to   
p]mit1 all[1 enc\rage1 or au?orize any  
,f$]al1 ,/ate1 or local gov]nm5t entity1
 or (fic] or employee !re(1 to m&ate1   
direct1 or control any aspect ( any     
private or religi\s elem5t>y or second>y
 education in/itution4  7,b7 ,no        
exclusion ( private or religi\s s*ools  
,no ,f$]al1 ,/ate1 or local gov]nm5t    
entity1 or (fic] or employee !re(1 %all 
impose or p]mit ! imposition ( any      

conditions or requirem5ts t w\ld exclude
 or op]ate to exclude educational       
exp5ses at private or religi\s elem5t>y 
& second>y education in/itutions f be+  
consid]$ qualifi$ elem5t>y or second>y  
education exp5ses4  7,c7 ,no exclusion (
 qualifi$ exp5ses due to in/itution's   
religi\s "* or affiliation ,no ,f$]al1  
,/ate1 or local gov]nm5t entity1 or     
(fic] or employee !re(1 %all exclude1   
discrim9ate aga9/1 or o!rwise           
disadvantage any elem5t>y or second>y   
education in/itution ) respect to       
qualifi$ elem5t>y or second>y education 
exp5ses at t in/itution bas$ 9 :ole or 9
 "p on ! in/itution's religi\s "* or    
affiliation1 includ+ religi\sly bas$ or 
mission-bas$ policies or practices4     
7#c7 ,p>5tal rights to use s*ol>%ips ,no
 ,f$]al1 ,/ate1 or local gov]nm5t       
entity1 or (fic] or employee !re(1 %all 
disfavor or disc\rage ! use ( s*ol>%ips 
grant$ by p>ticipat+ s*ol>%ip grant+    
organizations = qualifi$ elem5t>y or    
second>y education exp5ses at private or

 nonpr(it elem5t>y & second>y education 
in/itutions1 includ+ fai?-bas$ s*ools4  
7#d7 ,p>5tal "r to int]v5e ,9 any action
 fil$ 9 any ,/ate or ,f$]al c\rt :i*    
*all5ges ! con/itutionality 7"u !       
con/itution ( su* ,/ate or !            
,con/itution ( ! ,unit$ ,/ates7 ( any   
provision ( ?is ,act 7or any am5dm5t    
made by ?is ,act71 any p>5t ( an        
eligible /ud5t :o has receiv$ a s*ol>%ip
 f a s*ol>%ip grant+ organization %all h
 ! "r to int]v5e 9 support ( !          
con/itutionality ( su* provision or     
am5dm5t4 ,to avoid duplication ( ef=ts &
 r$uce ! burd5s plac$ on ! p>ties to !  
action1 ! c\rt 9 any su* action may     
require int]v5]s tak+ simil> positions  
to file jo9t pap]s or to be repres5t$ by
 a s+le attorney at oral argum5t1       
provid$ t ! c\rt does n require su*     
int]v5]s to jo9 any brief fil$ on behalf
 ( any ,/ate :i* is a def5dant 9 su*    
action4  7b7 ,def9itions ,= purposes (  
?is section1 ! t]ms eligible /ud5t1     
s*ol>%ip grant+ organization1 & qualifi$

 elem5t>y or second>y education exp5se  
%all h ! same mean+s giv5 su* t]ms "u   
section #be;,f7c7 ( ! ,int]nal ,rev5ue  
,code ( #aihf 7z add$ by section #b7;a7 
( ?is ,act74