Shown verbatim: the complete text as captured from the official PDF posted by the Tennessee General Assembly, fetched 2026-09-25. Page and line markers are part of the official record; nothing is edited or removed. This is the chaptered version. The official bill page.
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PUBLIC CHAPTER NO. 720
SENATE BILL NO. 2206
By Johnson, Bowling, Stevens, Taylor
Substituted for: House Bill No. 2187
By Lamberth, Doggett, Powers, Barrett, Davis, Terry, Vital, Maberry, Sparks, Cepicky
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.
(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.
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SB 2206
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.
2
SENATE BILL NO. 2206
PASSED: March 30, 2026
' n ... ?t .\-.\ ~D\ McNALLY
SPEAKER OF THE SENATE
CAMERU"RSEXTON,SPEAKER
HOUSE OF REPRESENTATIVES
&'\, APPROVED this fU-t:l day of 2026
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