Education

Plain English Breakdown

The bill summary does not provide specific details about tax credit amounts or additional requirements for scholarship granting organizations.

Participating in Federal Scholarship Tax Credit

This bill requires Tennessee to join a federal tax credit program for individuals who donate money to scholarship organizations.

What This Bill Does

• Requires the state of Tennessee to participate in a federal tax credit program for individuals who contribute to scholarship granting organizations as established under federal law.
• Directs the Department of Education to publish an annual list of eligible scholarship granting organizations on its website and submit it to the U.S. Secretary of the Treasury.
• Specifies that the Department of Education must accept applications from scholarship granting organizations throughout the year.
• Ensures compliance with federal requirements for Tennessee's participation in the tax credit program starting after December 31, 2026.

Who It Names or Affects

• The state of Tennessee and its Department of Education
• Scholarship granting organizations located in Tennessee
• Individuals who make contributions to scholarship granting organizations

Terms To Know

Tax Credit

A reduction in the amount of tax a person or organization owes.

Scholarship Granting Organization

An entity that provides scholarships to students, often funded by donations from individuals and businesses.

Limits and Unknowns

• The bill does not specify the exact amount of tax credit or how it will be calculated.
• It is unclear what additional requirements scholarship granting organizations must meet beyond those outlined in federal law.
• The Department of Education's authority to implement this section without creating new rules is noted.

Official Summary Text

Abstract summarizes the bill.

Current Bill Text

HOUSE BILL 2512
By Grills

SENATE BILL 2195
By Taylor
SB2195
012216
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 49,
relative to federal scholarship tax credit.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE:
SECTION 1. Tennessee Code Annotated, Title 49, Chapter 1, is amended by adding
the following as a new part:
49-1-1301. Federal scholarship tax credit – election.
The department of education shall elect to participate in the federal tax credit
established under Section 70411 of Pub. L. No. 119-21 for individuals who make
qualified contributions to scholarship granting organizations.
49-1-1302. List of scholarship granting organizations.
(a) The department of education shall:
(1) By no later than January 1, annually submit to the United States
secretary of the treasury and publish on the department's website a list of all
scholarship granting organizations that meet the requirements under § 70411 of
Pub. L. No. 119-21 and are located in this state;
(2) Certify to the United States secretary of the treasury the department's
authority to submit the list on behalf of the state;
(3) Accept submissions from scholarship granting organizations
throughout the year for inclusion on the list submitted pursuant to subdivision
(a)(1); and
(4) Comply with any other requirement under Section 70411 of Pub. L.
No. 119-21, including any applicable federal regulations or guidance, to ensure

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that this state is eligible to participate in taxable years beginning after December
31, 2026.
(b) A department, agency, or board of state government does not have authority
to promulgate a rule to implement this section.
SECTION 2. The headings in this act are for reference purposes only and do not
constitute a part of the law enacted by this act. However, the Tennessee Code Commission is
requested to include the headings in any compilation or publication containing this act.
SECTION 3. This act takes effect upon becoming a law, the public welfare requiring it.