Participating in the federal tax credit program for contributions to scholarship granting organizations, the official text

2025 - 2026 LEGISLATURE
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2025 ASSEMBLY BILL 602
October 29, 2025 - Introduced by Representatives Rodriguez, Franklin, Behnke, Dittrich, Donovan, Goeben, Green, Gundrum, B. Jacobson, Knodl, Kreibich, Murphy, Nedweski, O'Connor, Penterman, Spiros, Steffen, Tusler, Wichgers, Wittke and Gustafson, cosponsored by Senators Felzkowski, Hutton, Wanggaard, Jagler, James, Kapenga, Nass, Quinn, Tomczyk and Wimberger. Referred to Committee on Ways and Means.

An Act to create 16.004 (25) of the statutes; relating to: participating in the federal tax credit program for contributions to scholarship granting organizations.

Analysis by the Legislative Reference Bureau
The federal One Big Beautiful Bill Act of 2025, P.L. 119-106, created a federal tax credit for qualifying contributions to scholarship granting organizations. For purposes of this tax credit, federal law defines a “qualifying contribution” as a charitable contribution of cash to a scholarship granting organization that uses the contribution to fund scholarships for eligible students solely within the state that includes the scholarship granting organization on a list submitted by the state to the U.S. secretary of the treasury. Under federal law, participation in this tax credit program is optional for states. The tax credit applies to a state only if the governor of the state or another individual, agency, or entity designated under state law to make such election with respect to federal tax benefits voluntarily elects to participate in the program.
This bill requires the governor to make the necessary election for this state to participate in the federal tax credit program described above beginning with the taxable year beginning after December 31, 2026. The bill also requires the Department of Administration to annually submit to the U.S. secretary of the treasury a list of scholarship granting organizations located in this state to which qualifying contributions may be made and to comply with federal law, including any regulations or guidance issued by the U.S. secretary of the treasury related to the tax credit program, to ensure the state is eligible to participate in the tax credit program in taxable years beginning after December 31, 2026.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

Section 1. 16.004 (25) of the statutes is created to read:
16.004 (25) Qualifying scholarship granting organizations. The department shall annually submit to the U.S. secretary of the treasury and publish on the department’s website a list of scholarship granting organizations that meet the requirements under 26 USC 25F and are located in this state. The department shall certify to the U.S. secretary of the treasury the department’s authority to submit the list on behalf of the state and comply with any other requirement under 26 USC 25F, including any regulations or guidance issued under 26 USC 25F (h), to ensure that the state is eligible to participate in taxable years beginning after December 31, 2026.
Section 2. Nonstatutory provisions.
(1) Election. By no later than July 1, 2026, the governor shall elect to participate in the federal tax credit program established under 26 USC 25F for individuals who make qualified contributions to scholarship granting organizations beginning with the taxable year beginning after December 31, 2026.
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