Bill > HB2187

This bill, known as the "Federal Tax Credit Scholarship Act," allows Tennessee to participate in a federal tax credit program that encourages individuals to donate to certain scholarship granting organizations. The program, established by federal law (specifically Section 25F of the Internal Revenue Code and Section 70411 of Public Law 119-21), provides a tax credit to individuals who make "qualified contributions" to these organizations. The Tennessee Department of Education is tasked with identifying and certifying scholarship granting organizations within the state that meet federal requirements, submitting this list to the U.S. Treasury, and publishing it online. The department can create rules for organizations to qualify and can collaborate with other state agencies, like the Department of Revenue, to manage the program, ensuring Tennessee is eligible for the tax credit for taxable years starting after December 31, 2026, and allowing these scholarships to cover various elementary and secondary education expenses, including home schooling, as permitted by federal law.