(a) A parent of an eligible student shall qualify to participate in the program if the parent signs an agreement promising:

(1) To provide an education for the participating student in at least the subjects of English language arts, mathematics, social studies, and science; and

(2) Not to enroll the parent's eligible student in a public school during participation in the IEA program and to release the LEA in which the student resides and is zoned to attend from all obligations to educate the student. Participation in the program shall have the same effect as a parental refusal to consent to the receipt of services under 20 U.S.C. § 1414 of the Individuals with Disabilities Education Act (IDEA).

(b) Parents shall agree to use the funds deposited in a participating student's IEA for any, or any combination, of the following expenses of the participating student:

(1) Tuition or fees at a participating school;

(2) Textbooks required by a participating school;

(3) Tutoring services provided by a tutor or tutoring facility that meets the requirements set by the department and the state board of education;

(4) Payment for purchase of curriculum, including any supplemental materials required by the curriculum;

(5) Fees for transportation paid to a fee-for-service transportation provider;

(6) Tuition or fees for a nonpublic online learning program or course that meets the requirements set by the department and the state board of education;

(7) Fees for nationally standardized norm-referenced achievement tests, Advanced Placement examinations, or any examinations related to college or university admission;

(8) Contributions to a Coverdell education savings account established under 26 U.S.C. § 530 for the benefit of the participating student, except that funds used for elementary or secondary education expenses shall be for expenses otherwise allowed under this section;

(9) Educational therapies or services provided by therapists that meet the requirements set by the department and the state board of education;

(10) Services provided under a contract with a public school, including individual classes and extracurricular programs;

(11) Tuition or fees at an eligible postsecondary institution;

(12) Textbooks required for courses at an eligible postsecondary institution;

(13) Fees for the management of the IEA by private financial management firms;

(14) Computer hardware or other technological devices approved by the department or a licensed treating physician, if the computer hardware or other technological device is used for the student's educational needs; or

(15) Contributions to an achieving a better life experience account in accordance with the ABLE Act, compiled in title 71, chapter 4, part 8, and the rules promulgated pursuant thereto, for the benefit of a participating student; provided, that the funds are used only for the student's education expenses subject to the rules established by the achieving a better life experience program and that the student meets the qualifications to participate in the achieving a better life experience program pursuant to the ABLE Act, and § 529A of the Internal Revenue Code of 1986 (26 U.S.C. § 529A), as amended, and all rules, regulations, notices, and interpretations released by the United States department of treasury, including the internal revenue service.

(c) Parents may make payments for the costs of educational programs and services not covered by the funds in their IEA.

(d) A participating school shall notify the department whether the school provides inclusive educational settings. The department shall indicate those schools that provide inclusive educational settings in its posting of participating schools on its web site under §  49-10-1405(a)(7).

(e) For participating students in grades three through eight (3-8), a parent shall ensure that the student is annually administered either a nationally norm-referenced test identified by the department or the Tennessee comprehensive assessment program (TCAP) tests or any future replacements of the TCAP tests. The tests should, at a minimum, measure learning in mathematics and English language arts. Results of the testing shall be reported to the parent. Students with disabilities who would have participated in the alternate assessment, as determined on the student's IEP, are exempt from this requirement.

(f) For purposes of continuity of educational attainment, a student who enrolls in the program shall remain eligible until the participating student returns to a public school, graduates from high school, or reaches twenty-two (22) years of age by August 15 for the next school year, whichever occurs first.

(g) Notwithstanding subdivision (a)(2), a participating student may return to the student's LEA at any time after enrolling in the program. Upon a participating student's return to the student's LEA, the student's IEA shall be closed, and any remaining funds shall be returned to the state treasurer to be placed in the basic education program (BEP) account of the education trust fund of 1992 under §§ 49-3-357 and 49-3-358.

(h) Any funds remaining in a student's IEA upon graduation from high school may be used to attend or take courses from an eligible postsecondary institution, with qualifying expenses subject to the applicable conditions of subsection (b).

(i) A participating student's IEA shall be closed, and any remaining funds shall be returned to the state treasurer to be placed in the basic education program (BEP) account of the education trust fund of 1992 under §§ 49-3-357 and 49-3-358, if a participating student graduates from a postsecondary institution, after a period of four (4) consecutive years after a student enrolls in a postsecondary institution, or after any period of four (4) consecutive years after high school graduation in which the student is not enrolled in an eligible postsecondary institution, whichever occurs first.

(j) Funds received pursuant to this part do not constitute income taxable to the parent of the participating student or to the student under title 67, chapter 2.