Relating to state participation in the federal tax credit program for individual contributions to scholarship granting organizations

This bill relates to participation in the federal tax credit program for individual contributions to scholarship granting organizations. A scholarship granting organization is a nonprofit entity that provides scholarships to eligible elementary and secondary school children attending a nonpublic school. The bill requires the governor to elect to participate in the federal tax credit established by section 25F of the Internal Revenue Code (IRC). The bill requires the department of revenue and the department of education follow all federal laws and regulations to administer the federal tax credit established by section 25F of the IRC to ensure the state is eligible to participate in tax years beginning on or after January 1, 2027, and shall annually submit all required information to the secretary of the treasury of the United States for participation. A scholarship granting organization may provide scholarships to eligible students in the amount of $1,700 per year for any qualified elementary or secondary school expenses to the extent allowed by federal law.