Sec. 201. Refundable opt-out State education credit
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Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to refundable credits) is amended by inserting after section 36B the following new section: In the case of an eligible individual, there shall be allowed as a credit against the tax imposed by this chapter for the taxable year the opt-out State education amount. For purposes of this section— The term opt-out State education amount means, with respect to a taxpayer for a taxable year beginning in an opt-out year, the amount equal to— the amount creditable under section 102 of the Local Education Authority Returns Now Act to an opt-out State (determined under section 101 of such Act), multiplied by— a fraction— the numerator of which is the taxpayer’s household tax burden from such State for the opt-out year, and the denominator of which is the total tax revenue of such State for the opt-out year.
The household tax burden from a State for an opt-out year is the sum of— the State real property taxes, the State personal property taxes, the State income, war profits, and excess profits taxes, plus the State general sales taxes, for the calendar year in which the second preceding taxable year ends and within which paid or accrued by the taxpayer. For purposes of this section, terms used in the preceding sentence which are also used in section 164 shall have the respective meanings given such terms by section 164.
The total tax revenue of a State for an opt-out year is the amount determined by the Secretary to be the aggregate tax revenue of such State for the calendar year in which the second preceding taxable year ends. For purposes of this section— The term eligible individual means an individual whose principal place of abode (within the meaning of section 121) was in the opt-out State for the entire taxable year. The term eligible individual does not include any individual if a deduction under section 151 with respect to such individual is allowed to another taxpayer for a taxable year beginning in the calendar year in which such individual’s taxable year begins.
The term opt-out year means a calendar year for which the Secretary determines a State to be an opt-out State under section 101 of the Local Education Authority Returns Now Act . The credit under subsection
(a)shall be determined under tables prescribed by the Secretary. The tables prescribed under paragraph
(1)shall— reflect the provisions of this section, and take into account filing status, State of residence, and adjusted gross income. . Paragraph
(2)of section 1324(b) of title 31, United States Code, is amended by inserting 36C, after 36B, . The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item: Sec. 36C. Opt-out State education credit. . The amendments made by this section shall apply to taxable years beginning after the date of the enactment of this Act.