Bill > HB1763

This bill updates Pennsylvania's educational tax credit regulations to comply with a new federal tax credit (26 U.S.C. § 25F) for contributions to scholarship organizations. The bill designates the state department as the agency responsible for managing compliance and reporting to the U.S. Treasury, requiring scholarship organizations to submit detailed information about their operations by June 1, 2026, and annually thereafter. To be eligible for the federal tax credit, scholarship organizations must meet several specific criteria, including: providing scholarships to at least 10 students from different schools, spending at least 90% of their income on scholarships, prioritizing returning and sibling students, verifying student household income, avoiding earmarking contributions for specific students, and not awarding scholarships to disqualified persons. The department will notify scholarship organizations of their compliance status by September 1 each year, with the ability to perform random audits and remove organizations from the federal reporting list if they fail to meet requirements. The bill also requires the department to issue implementation guidelines within 60 days of the act's effective date, which must be published in the Pennsylvania Bulletin and posted online, and mandates that these guidelines cannot impose requirements beyond those specified in the federal tax code.

Education

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1763