1. Short title This Act may be cited as the Public Funds for Public Schools Act . 2. Elimination of school voucher State tax credit loophole by limiting the double benefit of charitable contributions (a) In general Section 170(f) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: (19) Limitation on double benefit in the case of State school voucher tax benefits (A) In general The amount of any charitable contribution otherwise taken into account under this section shall be reduced by any State school voucher tax benefit with respect to such contribution. (B) State school voucher tax benefit For purposes of this paragraph, the term State school voucher tax benefit means the aggregate amount of any State income tax credits, and excess State income tax deductions, provided to the taxpayer by a State for any contribution to a specified school voucher organization. (C) Excess State income tax deductions For purposes of this paragraph, the term excess State income tax deduction means the product of— (i) the highest rate of State income tax applicable to the taxpayer for the taxable year, multiplied by (ii) the excess (if any) of— (I) the State income tax deduction provided to the taxpayer with respect to contributions by the taxpayer to specified school voucher organizations, over (II) the amount of such contributions. (D) Specified school voucher organization For purposes of this paragraph, the term specified school voucher organization means any organization the primary purpose of which is the provision of vouchers, scholarships, or other funds, for the expenses of students to attend elementary or secondary schools. (E) Treatment of similar State benefits For purposes of this paragraph, any State benefit which is economically equivalent to a tax credit (including any payment) shall be treated as a State income tax credit for purposes of this paragraph and any State benefit which is economically equivalent to a State income tax deduction (including any exclusion from