Tennessee Senate Bill SB2195

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 49, relative to federal scholarship tax credit.

Summary

SB2195 directs the Tennessee Department of Education to elect to participate in a federal scholarship tax credit created under Section 70411 of Public Law 119-21. The bill is aimed at individuals who make qualified contributions to scholarship granting organizations, allowing Tennessee to take part in the federal program for taxable years beginning after December 31, 2026. To implement that participation, the department must annually compile and submit to the U.S. Secretary of the Treasury a list of scholarship granting organizations in Tennessee that meet federal requirements, publish that list on its website, certify its authority to submit the list on behalf of the state, and accept organization submissions throughout the year. The bill also states that no state department, agency, or board may adopt rules to implement the section, and it takes effect immediately upon becoming law.

Impact

The bill would amend Tennessee Code Annotated, Title 49, by adding a new part that assigns the Department of Education responsibility for administering Tennessee’s role in the federal scholarship tax credit program. It creates a state-level process for identifying eligible scholarship granting organizations and for formally opting Tennessee into the federal tax credit framework, while limiting state rulemaking authority for implementation. The practical effect is to connect Tennessee nonprofits and donors to a federal tax incentive tied to scholarship contributions, potentially affecting private scholarship organizations, taxpayers making eligible donations, and families receiving scholarships.

Sentiment

The available record shows no committee transcripts or recorded votes, so there is no direct evidence of debate, support, or opposition in the provided materials. Based on the bill text alone, the measure appears administrative and facilitative rather than controversial, as it simply positions Tennessee to participate in a federal tax credit program and sets out the Department of Education’s duties for compliance.

Contention

No specific points of contention are documented in the provided context. The only notable policy choice in the bill is that it centralizes the listing and certification process in the Department of Education while expressly prohibiting state agencies from adopting implementing rules, which could limit administrative flexibility. Any future disagreement would likely center on the federal scholarship tax credit itself, the eligibility of scholarship granting organizations, or the state’s role in facilitating the program, but those issues are not reflected in the supplied discussion or vote history.