Public and Private Education Assistance Act

Public and Private Education Assistance Act - Title I: Payments to States for Public Elementary and Secondary Education - Authorizes and directs the Secretary of Health, Education and Welfare to make available to the States funds from the Public Education Trust Fund established by this Act for the use by the States for expenditures to equalize public education within each State. Designates the Secretary as the trustee of the Public Education Trust Fund. Authorizes appropriations for deposit in the Fund of $2,250,000,000 for the fiscal year beginning July 1, 1973, and $2,250,000,000 for each fiscal year thereafter. Requires the Secretary to report to the Congress annually on the operation and status of the Fund during the preceding fiscal year.

Provides for standards which the States must establish in order to qualify for payments under this title.

Provides that no person in the United States shall on the ground of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this title.

Title II: Credit Against the Individual Income Tax for Tuition Paid for the Elementary or Secondary Education of Dependents - Allows as a credit under the Internal Revenue Code of 1954 the amount paid by an individual to any private non-profit elementary or secondary school during the taxable year for a dependent's education according to the following limitation: (1) 100 percent of such tuition; or (2) $400, whichever is the lesser.

Defines the terms used in this title.

Provides that the provisions of this Act shall apply to taxable years beginning after December 31, 1971.