; or (B) allow academic credits for coursework completed at a 4-year institution of higher education to be applied to a previously attended community college for the purpose of obtaining an associate degree or a certificate. (13) State fiscal support for higher education (A) Inclusions (i) In general Except as provided in subparagraph (B), the term State fiscal support for higher education , used with respect to a State for such State’s fiscal year, means an amount that is equal to— (I) the amount of applicable State funds appropriated by the State, including funds from lottery receipts, in the fiscal year, that are used to support institutions of higher education and student financial aid for higher education in the State; and (II) any funds described in clause (ii), if applicable. (ii) Local funds In the case of a State that includes, as part of the State share under section 786(b)(2)(B) for an award year, funds provided to community colleges by local governments in such State for the purpose of carrying out this subpart, local funds provided to community colleges operated or controlled by the State for operating expenses (excluding capital expenses, research and development costs, and local funds that are included in the State share under section 786(b)(2)(B)) shall be included in the calculation of the State fiscal support for higher education under clause (i). (B) Exclusions State fiscal support for higher education for a State fiscal year does not include— (i) funds described in subparagraph (A) that are returned to the State; (ii) State-appropriated funds derived from Federal sources, including funds provided under sections 786(a) and 801; (iii) funds that are included in the State share under section 786(b), except as provided in subparagraph (A)(ii), including funds included in the State share in accordance with paragraph (2)(A) of such section