H.F. 2755 Section 1. SCHOLARSHIP GRANTING PROGRAM. 1 1. The governor shall elect to participate in the federal 2 tax credit established by section 25F of the Internal Revenue 3 Code for individuals who make qualified contributions to 4 scholarship granting organizations. 5 2. The department of revenue and the department of education 6 shall follow all federal laws and regulations to administer the 7 federal tax credit established by section 25F of the Internal 8 Revenue Code to ensure the state is eligible to participate 9 in tax years beginning on or after January 1, 2027, and shall 10 annually submit all required information to the secretary of 11 the treasury of the United States for participation. 12 EXPLANATION 13 The inclusion of this explanation does not constitute agreement with 14 the explanation’s substance by the members of the general assembly. 15 This bill relates to participation in the federal tax credit 16 program for individual contributions to scholarship granting 17 organizations. A scholarship granting organization is a 18 nonprofit entity that provides scholarships to pay qualified 19 elementary or secondary expenses of eligible students attending 20 elementary or secondary school. Eligible expenses include 21 tuition, fees, tutoring, and other educational supports for 22 students attending public or private schools. A scholarship 23 granting organization may provide scholarships to eligible 24 students in an amount not to exceed $1,700 per year. 25 The bill requires the governor to elect to participate 26 in the federal tax credit established by section 25F of the 27 Internal Revenue Code (IRC). The bill requires the department 28 of revenue and the department of education follow all federal 29 laws and regulations to administer the federal tax credit 30 established by section 25F of the IRC to ensure the state is 31 eligible to participate in tax years beginning on or after 32 January 1, 2027, and shall annually submit all required 33 information to the secretary of the treasury of the United 34 States for participation. 35 -1- LSB 6112HV (3) 91 jm/jh 1/ 1