,,ii  #aai? ,,congress  #a/ ,session    
,s4 #ahac  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,may #bj1 #bjbe,mr4    
,scott ( ,s\? ,c>ol9a 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$it aga9/ tax = *>itable      
donations = ! creation or expansion (   
*>t] s*ools4  #a4 ,%ort title ,?is ,act 
may be cit$ z ! ,high-,quality ,*>t]    
,s*ools ,act4  #b4 ,tax cr$it =         
contributions to eligible *>t] s*ool    
organizations  7a7 ,9 g5]al ,subp>t ,a (
 "p ,,iv ( sub*apt] ,a ( *apt] #a ( !   
,int]nal ,rev5ue ,code ( #aihf is am5d$ 
by ins]t+ aft] section #be;,e ! foll[+  
new section3  #be;,f4 ,contributions to 
eligible *>t] s*ool organizations  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 #ge     

p]c5t ( ! am\nt ( 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$ an am\nt equal to ! great] (--    
7#a7 #aj p]c5t ( ! adju/$ gross income (
 ! taxpay] = ! taxable ye>1 or  7#b7    
#e1jjj4  7c7 ,def9itions ,= purposes (  
?is section-- 7#a7 ,*>t] s*ool ,! t]m   
*>t] s*ool has ! mean+ giv5 su* t]m 9   
section #dcaj ( ! ,elem5t>y & ,second>y 
,education ,act ( #aife 7#bj ,u4,s4,c4  
#gbba;i74  7#b7 ,eligible *>t] s*ool    
organization  7,a7 ,9 g5]al ,! t]m      
eligible *>t] s*ool organization means  
an entity :i*-- 7i7 is describ$ 9       
section #eja7;c77#c7 & exempt f tax "u  
section #eja7;a7 & is n a private       
f\ndation1  7ii7 is a *>t] managem5t    
organization 7z def9$ 9 section #dcaj ( 
! ,elem5t>y & ,second>y ,education ,act 
( #aife 7#bj ,u4,s4,c4 #gbba;i771 or a  
*>t] s*ool1 t-- 7,i7 7aa7 has receiv$ a 
grant = ! replication or expansion (    
high-quality *>t] s*ools "u section     

#dcje7;b7 ( ! ,elem5t>y & ,second>y     
,education ,act ( #aife 7#bj ,u4,s4,c4  
#gbba;d7b771 or  7bb7 manages or op]ates
 a *>t] s*ool t has be5 support$ "u su* 
a grant1 or  7,,ii7 has be5 select$ by a
 ,/ate = eligibility "u ?is section bas$
 on a det]m9ation by ! ,/ate t ! entity 
is 9 ! highe/ #aj p]c5t ( *>t] managem5t
 organizations 7z s def9$7 or *>t]      
s*ools1 z ! case may be1 = /ud5t        
p]=mance 9 ! ,/ate1  7iii7 sep>ate f any
 o!r funds or contributions receiv$ by !
 entity1 ma9ta9s & acc\nts = any        
contributions made by any p]son = !     
purpose ( ! creation or expansion ( *>t]
 s*ools op]at$ or manag$ by su* entity1 
7iv7 obta9s f an indep5d5t c]tifi$      
public acc\ntant annual f9ancial &      
compliance audits1 &  7v7 c]tifies to ! 
,secret>y 7at su* "t1 & 9 su* =m &      
mann]1 z ! ,secret>y may prescribe7 t ! 
audit describ$ 9 clause 7iv7 has be5    
complet$4  7,b7 ,indep5d5t c]tifi$      
public acc\ntant ,= purposes (          
subp>agraph 7,a71 ! 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#c7      
,qualifi$ contribution ,! t]m qualifi$  
contribution means a *>itable           
contribution 7z def9$ by section        
#agj7;c77 to an eligible *>t] s*ool     
organization 9 ! =m ( ca% or m>ketable  
securities = ! purpose ( ! creation or  
expansion ( *>t] s*ools manag$ or op]at$
 by su* organization4  7d7 ,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 
7e7 ,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  7f7 ,application (     
volume cap  7#a7 ,9 g5]al ,subject to   
p>agraph 7#b71 a qualifi$ contribution  
%all n be tak5 into acc\nt "u ?is       
section if su* contribution w\ld result 
9 ! aggregate am\nt ( cr$its claim$ "u  
?is section exce$+ ! volume cap e/abli%$
 "u section #d ( ! ,high-,quality ,*>t] 
,s*ools ,act4  7#b7 ,/ate allocations ,=
 purposes ( ! allocation made to a ,/ate
 pursuant to subp>agraph 7,a7 ( section 
#d7;a77#a7 ( ! ,high-,quality ,*>t]     
,s*ools ,act1 if a qualifi$ contribution
 made by an individual resid+ 9 su*     
,/ate w\ld result 9 ! aggregate am\nt ( 
cr$its claim$ "u ?is section by         

individuals resid+ 9 su* ,/ate exce$+ ! 
allocation made to su* ,/ate pursuant to
 su* subp>agraph1 su* contribution %all 
only be tak5 into acc\nt "u ?is section 
if su* contribution does n result 9 !   
aggregate am\nt ( cr$its claim$ by      
individuals pursuant to subp>agraph 7,b7
 ( su* section exce$+ ! am\nt made      
available pursuant to su* subp>agraph4  
4  7b7 ,cl]ical am5dm5t ,! table (      
sections = subp>t ,a ( "p ,,iv (        
sub*apt] ,a ( *apt] #a ( su* ,code is   
am5d$ by ins]t+ aft] ! item relat+ to   
section #be;,e ! foll[+ new item3  ,sec4
 #be;,f4 ,contributions to eligible *>t]
 s*ool organizations4  4  #c4 ,failure (
 eligible *>t] s*ool organization to    
make exp5ditures  7a7 ,9 g5]al ,*apt]   
#db ( ! ,int]nal ,rev5ue ,code ( #aihf  
is am5d$ by add+ at ! end ! foll[+ new  
sub*apt]3  ,i ,eligible ,*>t] ,s*ool    
,organizations  ,sec4 #difi4 ,failure to
 exp5d receipts4  #difi4 ,failure to    
exp5d receipts  7a7 ,9 g5]al ,9 ! case (
 any eligible *>t] s*ool organization 7z

 def9$ 9 section #be;,f7c77#b77 :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#c77 = purposes ( section    
#be;,f4  7b7 ,requirem5t ,! requirem5t  
describ$ 9 ?is subsection is t ! am\nt (
 qualifi$ contributions ( ! eligible    
*>t] s*ool organization = ! taxable ye> 
:i* are exp5d$ be=e ! exp5diture deadl9e
 ) respect to su* receipts %all n be    
less ?an ! requir$ exp5diture am\nt )   
respect to su* taxable ye>4  7c7        
,def9itions ,= purposes ( ?is section-- 
7#a7 ,requir$ exp5diture am\nt  7,a7 ,9 
g5]al ,! requir$ exp5diture am\nt )     
respect to a taxable ye> is ! am\nt     
equal to #ajj p]c5t ( qualifi$          
contributions = su* taxable ye>-- 7i7   
r$uc$ by ! sum ( su* qualifi$           
contributions t are reta9$ = reasonable 

adm9i/rative exp5ses = ! taxable ye> or 
are c>ri$ to ! succe$+ taxable ye> "u   
subp>agraph 7,c71 &  7ii7 increas$ by ! 
am\nt ( ! c>ryov] "u subp>agraph 7,c7 f 
! prec$+ taxable ye>4  7,b7 ,safe h>bor 
= reasonable adm9i/rative exp5ses ,=    
purposes ( subp>agraph 7,a77i71 if !    
p]c5tage ( total qualifi$ contributions 
to an eligible *>t] s*ool organization =
 a taxable ye> :i* are us$ =            
adm9i/rative purposes relat$ to         
activities = ! creation or expansion (  
*>t] s*ools 7z def9$ 9 section          
#be;,f7c77#a77 op]at$ or manag$ by su*  
organization is equal to or less ?an #aj
 p]c5t1 su* exp5ses %all be deem$ to be 
reasonable = purposes ( su* subp>agraph4
  7,c7 ,c>ryov] ,) respect to ! am\nt ( 
! total qualifi$ contributions to an    
eligible *>t] s*ool organization )      
respect to any taxable ye>1 an am\nt n  
great] ?an #ae p]c5t ( su* am\nt may1 at
 ! election ( su* organization1 be c>ri$
 to ! succe$+ taxable ye>4  7#b7        
,exp5ditures ,! t]m exp5ditures includes

 am\nts :i* are =mally committ$ b n     
exp5d$4 ,a =mal commitm5t describ$ 9 !  
prec$+ s5t5ce may include qualifi$      
contributions set aside = ! creation or 
expansion ( *>t] s*ools op]at$ or manag$
 by su* organization = m ?an "o ye>4    
7#c7 ,exp5diture deadl9e ,! exp5diture  
deadl9e ) respect to qualifi$           
contributions = a taxable ye> is ! fir/ 
day ( ! fif? taxable ye> foll[+ !       
taxable ye> 9 :i* su* qualifi$          
contributions are receiv$ by ! eligible 
*>t] s*ool organization4  7#d7 ,qualifi$
 contributions ,! t]m qualifi$          
contributions means contributions       
eligible = ! cr$it "u section #be;,f4  4
  7b7 ,cl]ical am5dm5t ,! table (       
sub*apt]s = *apt] #db ( su* ,code is    
am5d$ by add+ at ! end ! foll[+ new     
item3  ,sub*apt] ,i4 ,eligible ,*>t]    
,s*ool ,organizations  4  #d4 ,volume   
cap  7a7 ,allocation  7#a7 ,9 g5]al ,=  
purposes ( section #be;,f7f7 ( !        
,int]nal ,rev5ue ,code ( #aihf 7z add$  
by ?is ,act71 ! volume cap applicable ) 

respect to su* section %all be          
#e1jjj1jjj1jjj ( tax cr$its = taxable   
ye>s beg9n+ 9 cal5d> ye> #bjbf & ea*    
subsequ5t ye> !reaft]1 ) su* am\nt to be
 allocat$ z foll[s3 7,a7 #aj1jjj1jjj (  
tax cr$its %all be allocat$ to ea* ,/ate
 7z def9$ 9 section #ggja7;a77#aj7 ( !  
,int]nal ,rev5ue ,code ( #aihf71 ) su*  
am\nt to be made available1 9 ! mann]   
describ$ 9 subsection 7b71 = any        
individual resid+ 9 su* ,/ate to claim !
 cr$it all[$ "u section #be;,f ( !      
,int]nal ,rev5ue ,code ( #aihf ) respect
 to any qualifi$ contributions 7z def9$ 
9 su* section7 made by su* individual   
dur+ any taxable ye> beg9n+ dur+ su*    
cal5d> ye>4  7,b7 ,) respect to ! am\nt 
rema9+ aft] ! allocation "u subp>agraph 
7,a71 su* am\nt 7z adju/$ pursuant to   
p>agraph 7#c77 %all be made available1 9
 ! mann] describ$ 9 subsection 7b71 =   
any individual to claim ! cr$it all[$ "u
 section #be;,f ( ! ,int]nal ,rev5ue    
,code ( #aihf ) respect to any qualifi$ 
contributions made by su* individual    

dur+ any taxable ye> beg9n+ dur+ su*    
cal5d> ye>4  7#b7 ,c>ryov] ,! am\nt (   
any allotm5t to a ,/ate "u p>agraph     
7#a77;,a7 = any cal5d> ye> :i* is n     
claim$ by taxpay]s describ$ 9 su*       
p>agraph dur+ su* cal5d> ye> %all be    
add$ to ! allotm5t provid$ "u p>agraph  
7#a77;,b7 = ! subsequ5t cal5d> ye>4     
7#c7 ,increase 9 nationwide volume cap  
,= purposes ( p>agraph 7#a77;,b71 if !  
,secret>y det]m9es dur+ any cal5d> ye> t
 ! am\nt ( tax cr$its all[able "u       
section #be;,f ) respect to qualifi$    
contributions made dur+ su* cal5d> ye>  
is equal to or great] ?an #ij p]c5t ( ! 
total am\nt made available "u su*       
p>agraph = su* cal5d> ye>1 su* am\nt    
%all be increas$ by an am\nt equal to #e
 p]c5t ( ! total am\nt made available "u
 su* p>agraph z ( ,janu>y #a ( su*      
cal5d> ye>1 ) su* increase to rema9 9   
effect = ! subsequ5t cal5d> ye>4  7b7   
,fir/-,come1 fir/-,s]ve ,= purposes (   
apply+ ! volume cap "u ?is section1 su* 
volume cap %all be appli$ bas$ on a     

fir/-come1 fir/-s]ve basis1 z det]m9$   
bas$ on ! date on :i* ! taxpay] made !  
qualifi$ contribution4  7c7 ,real-,"t   
in=mation ,= purposes ( ?is section1 !  
,secret>y ( ! ,treasury 7or !           
,secret>y's delegate7 %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 ( ! ,int]nal ,rev5ue ,code (     
#aihf1 ) su* in=mation to be updat$ 9   
real "t4  #e4 ,organizational & p>5tal  
autonomy  7a7 ,prohibition ( control ov]
 eligible *>t] s*ool organizations  7#a7
 ,9 g5]al ,an eligible *>t] s*ool       
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 ,maximum fre$om ,to !    
ext5t p]missible by law1 ?is ,act1 & any
 am5dm5t made by ?is ,act1 %all be      
con/ru$ to all[ eligible *>t] s*ool     
organizations maximum fre$om to provide 
= ! ne$s ( ! /ud5ts s]v$ by ! *>t]      

s*ools op]at$ or manag$ by !            
organization )\t gov]nm5tal control4    
7b7 ,def9itions ,= purposes ( ?is       
section1 ! t]ms *>t] s*ool & eligible   
*>t] s*ool organization %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  #f4 ,effective date ,! am5dm5ts 
made by ?is ,act %all apply to taxable  
ye>s beg9n+ aft] ,decemb] #ca1 #bjbe4