student means any student who— (A) is enrolled in, or attends, any public, private, or religious school (as defined in section 530(b)(3)(B)), and (B) whose principal residence (within the meaning of section 123) is located in an Economic Freedom Zone. (3) Economic freedom zone The term Economic Freedom Zone means any area which is an Economic Freedom Zone under title II of the Economic Freedom Zone Act. . (b) Clerical amendment The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25D the following new item: Sec. 25E. Credit for qualified elementary and secondary education expenses. . (c) Effective date The amendments made by this section shall apply to expenditures made in taxable years beginning after the date of the enactment of this Act. 502. School choice through portability (a) In general Subpart 2 of part A of title I of the Elementary and Secondary Education Act of 1965 ( 20 U.S.C. 6331 et seq.) is amended by adding at the end the following: 1128. School choice through portability (a) Authorization (1) In general Notwithstanding sections 1124, 1124A, and 1125 and any other provision of law, and to the extent permitted under State law, a State educational agency may allocate grant funds under this subpart among the local educational agencies in the State based on the formula described in paragraph (2). (2) Formula A State educational agency may allocate grant funds under this subpart for a fiscal year among the local educational agencies in the State in proportion to the number of eligible children enrolled in public schools served by the local educational agency and enrolled in State-accredited private schools within the local educational agency's geographic jurisdiction, for the most recent fiscal year for which satisfactory data are available, compared to the number of such children in all such local educational agencies for that fiscal year. (b) Eligible child (1) In general In this section, the term eligible