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SB 2206

Federal Aid - As enacted, enacts the "Federal Tax Credit Scholarship Act." - Amends TCA Title 4; Title 9 and Title 49.

114th Regular Session (2025-2026)

Tennessee establishes federal tax credit scholarship program allowing donors tax credits for donations to education scholarship organizations, expanding school choice options.

Pub. Ch. 720
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Bill Summary · SB 2206

Legislative bill overview

SB 2206 enacts Tennessee's "Federal Tax Credit Scholarship Act," which would establish a tax credit scholarship program allowing individuals and businesses to receive federal tax credits for donations to scholarship-granting organizations. The bill amends multiple sections of Tennessee Code to create the framework for this program's administration and operation.

Why is this important

This legislation would create an alternative education funding mechanism that redirects federal tax benefits toward private school scholarships, potentially affecting K-12 education funding, school choice policy, and state revenue collection. The program's scope and implementation details will significantly impact both public education systems and families' educational options across Tennessee.

Potential points of contention

  • Public vs. private education funding: Critics may argue the program diverts resources from public schools; supporters contend it expands educational choice and leverages private giving
  • Federal tax credit mechanics: Questions about how federal tax credits interact with state administration, potential conflicts with IRS regulations, and whether federal approval is secured
  • Accountability and transparency: Concerns about oversight mechanisms for scholarship-granting organizations, eligibility criteria for participating schools, and how funds are distributed and audited

Compiled from official sources — confirm details with the bill’s official record.

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