(a) The Commonwealth shall pay to any school district making a preliminary payment on account of the approved building construction or approved renovation cost as authorized by section 783¹ or by clause (4) of section 790² or by clause (5) of section 791³ of this act, an amount determined by multiplying the district's capital account reimbursement fraction computed for the year 1967 or aid ratio whichever is larger by the amount of the payment made by the school district.

(b) Whenever any school district provides the full payment on account of approved building construction or approved renovation cost without incurring debt, or without assuming a lease, the Commonwealth shall pay to such school district an amount determined by multiplying the district's capital account reimbursement fraction computed for the year 1967 or aid ratio whichever is larger by the amount of the payment made by the school district.

(c) The payment required by this section shall be made for the year in which the school district made its payment on account of the approved building construction or approved renovation cost.