To restrict the use of certain State or local tax incentives.

Prohibits a State or political subdivision from being eligible to receive any grant for economic development purposes under the Housing and Community Development Act of 1974 or under the Public Works and Economic Development Act of 1965 if such State, political subdivision, or other State instrumentality offers, permits, or grants a tax incentive that relieves a taxpayer from paying any State or local tax which would otherwise be payable for the direct or indirect support of primary and secondary education.