Education - Certification of Scholarship Granting Organizations (Opting in on Opportunity Act)

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb0455*

HOUSE BILL 455
F1, Q3 6lr0893
CF SB 329
By: Delegates Miller, Wivell, Adams, Anderson, Arentz, Baker, Beauchamp,
Bouchat, Buckel, Ciliberti, Ghrist, Griffith, Hartman, Hinebaugh,
Hornberger, Howard, Hutchinson, Jacobs, Kipke, R. Long, Mangione,
T. Morgan, Nkongolo, Pippy, Reilly, Rose, Tomlinson, and Valentine
Introduced and read first time: January 23, 2026
Assigned to: Ways and Means

A BILL ENTITLED

AN ACT concerning 1

Education – Certification of Scholarship Granting Organizations 2
(Opting in on Opportunity Act) 3

FOR the purpose of requiring the State Department of Education to approve and certify a 4
nonprofit organization that meets certain requirements as a scholarship granting 5
organization; requiring the Department, beginning in a certain year, to annually 6
provide the Secretary of the U.S. Department of the Treasury a list of scholarship 7
granting organizations in the State; requiring the Comptroller to make available 8
online guidance that assists individual taxpayers in claiming the federal income tax 9
credit for contributions to scholarship granting organizations; and generally relating 10
to scholarship granting organizations. 11

BY adding to 12
Article – Education 13
Section 7–137 14
Annotated Code of Maryland 15
(2025 Replacement Volume and 2025 Supplement) 16

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 17
That the Laws of Maryland read as follows: 18

Article – Education 19

7–137. 20

(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 21
INDICATED. 22
2 HOUSE BILL 455

(2) “NONPROFIT ORGANIZATION” MEANS AN ORGANIZATION THAT IS 1
NOT SUBJECT TO TAXATION UNDER § 501(C)(3) OF THE INTERNAL REVENUE CODE 2
AND IS NOT A PRIVATE FOUNDATION. 3

(3) “SCHOLARSHIP GRANTING ORGANIZATION” HAS THE MEANING 4
STATED IN § 25F OF THE INTERNAL REVENUE CODE. 5

(B) IT IS THE INTENT OF THE GENERAL ASSEMBLY THAT THIS SECTION BE 6
CONSTRUED IN A MANNER THAT IS CONSISTENT WITH, AND ENABLES THE STATE TO 7
PARTICIPATE IN, THE FEDERAL TAX CREDIT SCHOLARSHIP PROGRAM ESTABLISHED 8
UNDER § 25F OF THE INTERNAL REVENUE CODE. 9

(C) TO CARRY OUT SUBSECTI ON (B) OF THIS SECTION , THE DEPARTMENT 10
SHALL: 11

(1) SUBJECT TO SUBSECTION (D) OF THIS SECTION , APPROVE AND 12
CERTIFY A NONPROFIT ORGANIZATI ON AS A SCHOLARSHIP GRA NTING 13
ORGANIZATION IF THE NONPROFIT ORGANIZATION: 14

(I) IS ORGANIZED UNDER THE LAWS OF THE STATE; 15

(II) PROVIDES SCHOLARSHIPS TO ELIG IBLE STUDENTS , AS 16
DEFINED IN § 25F OF THE INTERNAL REVENUE CODE, IN THE STATE; AND 17

(III) APPLIES TO THE DEPARTMENT IN ACCORDA NCE WITH 18
SUBSECTION (D) OF THIS SECTION; AND 19

(2) ON OR BEFORE JANUARY 1 EACH YEAR , BEGINNING IN 2027, 20
SUBMIT TO THE SECRETARY OF THE U.S. DEPARTMENT OF THE TREASURY A LIST 21
OF SCHOLARSHIP GRANTING ORGANIZATIONS IN THE STATE. 22

(D) (1) A NONPROFIT ORGANIZATI ON SEEKING STATUS AS A 23
SCHOLARSHIP GRANTING ORGANIZATION SHALL APPLY TO THE DEPARTMENT FOR 24
APPROVAL AND CERTIFICATION AS REQUIRED BY THE DEPARTMENT. 25

(2) EACH YEAR, EACH SCHOLARSHIP GRANTING ORGANIZATION 26
SHALL SUBMIT TO THE DEPARTMENT A FINANCIAL STATEMEN T AND PROGRAM 27
REPORT AS REQUIRED BY THE DEPARTMENT DEMONSTRATING COMPLIANCE WITH 28
THIS SECTION. 29

(E) EACH YEAR , THE DEPARTMENT SHALL MAKE AVAILABLE ONLIN E A 30
REPORT THAT INCLUDES: 31
HOUSE BILL 455 3

(1) THE NUMBER OF SCHOLAR SHIPS AWARDED BY EAC H 1
SCHOLARSHIP GRANTING ORGANIZATION; 2

(2) THE AVERAGE AND MEDIAN SCHOLARSHIP AMOUNTS; AND 3

(3) THE SCHOOLS ATTENDED BY SCHOLARSHIP RECIPIENTS. 4

(F) THE COMPTROLLER SHALL MAKE AVAILABLE ONLINE GUIDANCE THAT 5
ASSISTS INDIVIDUAL TAXPAYERS IN CLAIMING THE FEDE RAL INCOME TAX CREDI T 6
ALLOWABLE UNDER § 25F OF THE INTERNAL REVENUE CODE FOR MAKING 7
QUALIFIED CONTRIBUTI ONS, AS DEFINED IN § 25F OF THE INTERNAL REVENUE 8
CODE, TO SCHOLARSHIP GRANTING ORGANIZATIONS DURING A TAXABLE YEAR. 9

(G) (1) AS AUTHORIZED BY STATE AND FEDERAL LAW, THE DEPARTMENT 10
AND THE COMPTROLLER MAY SHARE INFORMATION AS NECESSARY TO CARRY OUT 11
THE REQUIREMENTS OF THIS SECTION. 12

(2) THE DEPARTMENT, IN CONSULTATION WITH THE COMPTROLLER, 13
MAY ADOPT REGULATIONS TO CARRY OUT THIS SECTION, INCLUDING REGULATIONS 14
GOVERNING REPORTING, ACCOUNTABILITY, AND PENALTIES FOR NONCOMPLIANCE. 15

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 16
1, 2026. 17