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SB2206 • 2026

Federal Aid

AN ACT to amend Tennessee Code Annotated, Title 4; Title 9 and Title 49, relative to the federal tax credit for contributions made to certain scholarship granting organizations.

Education Taxes
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
Johnson, Lamberth
Last action
2026-04-14
Official status
Signed by Governor.
Effective date
Not listed

Plain English Breakdown

The official source does not provide specific details on when Tennessee will start participating in the federal tax credit program.

Federal Tax Credit Scholarship Act

This bill allows Tennessee to participate in a federal tax credit program for contributions made to scholarship granting organizations that fund educational expenses.

What This Bill Does

  • Requires the commissioner of education to elect whether Tennessee will join a federal tax credit program for scholarships.
  • Directs the department of education to create and publish a list of eligible scholarship granting organizations on its website, as required by federal law.
  • Allows the department to establish rules governing how entities can become scholarship granting organizations in accordance with federal requirements.
  • Permits the department to work with other state agencies, such as the revenue department, to comply with federal regulations.

Who It Names or Affects

  • The commissioner and department of education in Tennessee
  • Scholarship granting organizations in Tennessee

Terms To Know

scholarship granting organization
An organization that collects donations to give out scholarships for educational expenses.
qualified elementary or secondary education expense
Money spent on approved school-related costs, including homeschooling.

Limits and Unknowns

  • The bill does not specify the exact date when Tennessee will start participating in the federal tax credit program.
  • It is unclear how many scholarship granting organizations will qualify under this new law.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

Amendment 1-0 to HB2187

Plain English: The amendment changes how Tennessee lists scholarship granting organizations that qualify for federal tax credits, ensuring at least one organization focuses on tutoring, afterschool programs, and special needs services.

  • Adds a requirement for the department of education to list at least one scholarship granting organization whose sole purpose is funding scholarships for tutoring, afterschool programs, and special needs services for public school students.
  • Specifies that this particular organization must be listed first on the website.
  • Requires the department to certify its authority to submit the list and comply with federal requirements.
  • The amendment text does not specify how the department will select or verify the sole-purpose scholarship granting organization.
Amendment 1-0 to SB2206

Plain English: The amendment changes how Tennessee lists scholarship granting organizations on its website to include a specific organization focused on tutoring, afterschool programs, and special needs services for public school students.

  • Adds a requirement that the department of education must list at least one scholarship granting organization whose sole purpose is funding scholarships for tutoring, afterschool programs, and special needs services for public school students first on its website.
  • Modifies the certification process to include compliance with federal tax credit requirements under 26 U.S.C. § 25F.
  • The amendment text does not specify how the department will select or verify the specific scholarship granting organization mentioned in (a)(2).

Bill History

  1. 2026-04-14 Tennessee General Assembly

    Signed by Governor.

  2. 2026-04-02 Tennessee General Assembly

    Transmitted to Governor for action.

  3. 2026-04-02 Tennessee General Assembly

    Signed by H. Speaker

  4. 2026-04-01 Tennessee General Assembly

    Signed by Senate Speaker

  5. 2026-04-01 Tennessee General Assembly

    Enrolled and ready for signatures

  6. 2026-03-30 Tennessee General Assembly

    Passed H., Ayes 75, Nays 19, PNV 0

  7. 2026-03-30 Tennessee General Assembly

    Failed to adopt Am (Amendment 1 - HA0888), Ayes 24, Nays 70, PNV 0

  8. 2026-03-30 Tennessee General Assembly

    Subst. for comp. HB.

  9. 2026-03-30 Tennessee General Assembly

    Sponsor(s) Added.

  10. 2026-03-30 Tennessee General Assembly

    Comp. SB subst.

  11. 2026-03-23 Tennessee General Assembly

    Rcvd. from S., held on H. desk.

  12. 2026-03-23 Tennessee General Assembly

    H. Placed on Regular Calendar for 3/30/2026

  13. 2026-03-23 Tennessee General Assembly

    Objected to on Consent Calendar.

  14. 2026-03-23 Tennessee General Assembly

    Sponsor(s) Added.

  15. 2026-03-19 Tennessee General Assembly

    Sponsor(s) Added.

  16. 2026-03-19 Tennessee General Assembly

    Engrossed; ready for transmission to House

  17. 2026-03-19 Tennessee General Assembly

    Passed Senate, Ayes 27, Nays 5, PNV 1

  18. 2026-03-19 Tennessee General Assembly

    Amendment tabled (Amendment 1 - SA0722)

  19. 2026-03-19 Tennessee General Assembly

    H. Placed on Consent Calendar for 3/23/2026

  20. 2026-03-18 Tennessee General Assembly

    Placed on cal. Calendar & Rules Committee for 3/19/2026

  21. 2026-03-17 Tennessee General Assembly

    Placed on Senate Regular Calendar for 3/19/2026

  22. 2026-03-16 Tennessee General Assembly

    Senate Reset on calendar for 3/19/2026

  23. 2026-03-16 Tennessee General Assembly

    Rec. for pass; ref to Calendar & Rules Committee

  24. 2026-03-13 Tennessee General Assembly

    Placed on Senate Consent Calendar 2 for 3/16/2026

  25. 2026-03-11 Tennessee General Assembly

    Recommended for passage, refer to Senate Calendar Committee

  26. 2026-03-11 Tennessee General Assembly

    Placed on cal. Government Operations Committee for 3/16/2026

  27. 2026-03-10 Tennessee General Assembly

    Rec. for pass; ref to Government Operations Committee

  28. 2026-03-05 Tennessee General Assembly

    Placed on Senate Education Committee calendar for 3/11/2026

  29. 2026-03-05 Tennessee General Assembly

    Placed on cal. Education Committee for 3/10/2026

  30. 2026-03-03 Tennessee General Assembly

    Rec. for pass by s/c ref. to Education Committee

  31. 2026-02-25 Tennessee General Assembly

    Placed on s/c cal K-12 Subcommittee for 3/3/2026

  32. 2026-02-05 Tennessee General Assembly

    Passed on Second Consideration, refer to Senate Education Committee

  33. 2026-02-05 Tennessee General Assembly

    Assigned to s/c K-12 Subcommittee

  34. 2026-02-05 Tennessee General Assembly

    P2C, ref. to Education Committee - Government Operations for Review

  35. 2026-02-04 Tennessee General Assembly

    Intro., P1C.

  36. 2026-02-02 Tennessee General Assembly

    Introduced, Passed on First Consideration

  37. 2026-02-02 Tennessee General Assembly

    Filed for introduction

  38. 2026-02-02 Tennessee General Assembly

    Filed for introduction

Official Summary Text

Generally, federal law allows a tax credit for charitable contributions of cash to a scholarship granting organization that uses
the contributions to fund scholarships

for qualified elementary or secondary education expense
s

in a state that authorizes participation in the program. This bill requires the commissioner of

education
to
elect to participate in the federal tax credit.

This bill requires the department of education to take the following actions in order to facilitate the state's participation in the program:

(1) C
ertify and submit to the secretary of the treasury of the United States and publish on the department's website a list of scholarship granting organizations that meet the requirements of
federal law
and are located in
Tennessee; and

(2) C
ertify its authority to submit the list on behalf of the state and comply with any other requirements of
federal law.

This bill authorizes the department to do the following:

(1) E
stablish rules governing the process and documentation necessary for an entity to qualify to be included as a scholarship granting organization
; and

(
2
)
E
nter into an agreement with other state departments and agencies, including the department of revenue, to meet the requirements of this
bill
.

Current Bill Text

Read the full stored bill text 
HOUSE BILL 2187
By Lamberth

SENATE BILL 2206
By Johnson
SB2206
012209
- 1 -

AN ACT to amend Tennessee Code Annotated, Title 4;
Title 9 and Title 49, relative to the federal tax credit
for contributions made to certain scholarship
granting organizations.

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.
This part is known and may be cited as the "Federal Tax Credit Scholarship Act."
49-1-1302.
In accordance with § 25F of the Internal Revenue Code (26 U.S.C. § 25F), the
commissioner 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 and identify scholarship granting
organizations located in this state in accordance with § 49-1-1303.
49-1-1303.
(a) The department of education shall certify and submit to the secretary of the
treasury of the United States and publish on the department's website a list of
scholarship granting organizations that meet the requirements of § 25F of the Internal
Revenue Code (26 U.S.C. § 25F) and are located in this state. As part of the
submission, the department shall certify its authority to submit the list on behalf of the
state and comply with any other requirements of 26 U.S.C. § 25F, its associated
regulations, or other applicable guidance issued by the secretary of the treasury of the
United States.

- 2 - 012209

(b) The department may establish rules governing the process and
documentation necessary for an entity to qualify to be included as a scholarship granting
organization on the list produced and submitted by the department pursuant to
subsection (a) and in accordance with 26 U.S.C. § 25F, its associated regulations, or
other applicable guidance issued by the secretary of the treasury of the United States.
Rules must be promulgated in accordance with the Uniform Administrative Procedures
Act, compiled in title 4, chapter 5.
(c) The department may enter into an agreement with other state departments
and agencies, including the department of revenue, to meet the requirements of this
section.
49-1-1304.
The department of education shall comply with all federal regulations pertaining
to the administration of the federal tax credit established under 26 U.S.C. § 25F to
ensure that the state is eligible to participate in taxable years beginning after December
31, 2026.
49-1-1305.
In accordance with 26 U.S.C. § 25F and any applicable federal regulation and
guidance, qualifying scholarship granting organizations on the list produced pursuant to
§ 49-1-1303 may provide scholarships for any qualified elementary or secondary
education expense, including home school expenses, to the extent allowed under
federal law.
SECTION 2. This act takes effect upon becoming a law, the public welfare requiring it.