Tennessee Senate Bill SB2206

Tennessee 2025-2026 Regular Session

• Introduced: 2/2/26
• Engrossed: 3/19/26
• Enrolled: 4/1/26
• Passed: 4/14/26
• Chaptered: 5/5/26

Caption

AN ACT to amend Tennessee Code Annotated, Title 4; Title 9 and Title 49, relative to the federal tax credit for contributions made to certain scholarship granting organizations.

Summary

SB2206 creates the “Federal Tax Credit Scholarship Act” and directs the Tennessee Department of Education to participate in a new federal tax credit program for individuals who make qualified contributions to scholarship granting organizations. The department must identify, certify, and publish on its website a list of Tennessee scholarship granting organizations that meet federal requirements, and it may adopt rules and coordinate with other state agencies, including the Department of Revenue, to administer the program. The bill also requires the department to comply with federal regulations so Tennessee remains eligible to participate for taxable years beginning after December 31, 2026. Under the bill, qualifying scholarship granting organizations on the state list may award scholarships for qualified elementary and secondary education expenses, including home school expenses, to the extent allowed by federal law. The act takes effect upon becoming law.

Impact

The bill adds a new part to Tennessee Code Annotated Title 49, Chapter 1, and gives the Department of Education new duties related to certifying scholarship granting organizations, submitting the state list to the U.S. Treasury, and publishing that list publicly. It also authorizes rulemaking under the Uniform Administrative Procedures Act and interagency cooperation to implement the federal tax credit. The practical effect is to create a state administrative framework for a federal tax incentive tied to private scholarship donations, with potential benefits for families using private, alternative, or home school education options.

Sentiment

The available voting history suggests generally strong support for the bill. It received a unanimous recommendation in the Senate Education Committee and later passed the Senate on third consideration by a wide margin. A later floor vote on an amendment failed, but the bill itself then passed overwhelmingly, indicating broad backing for the underlying policy even if some members sought changes to its details.

Contention

The main point of contention appears to have been the amendment considered on March 30, which failed 23-70, suggesting disagreement over how the program should be structured or limited. While the record provided does not include debate transcripts, the subject matter itself may raise concerns about public funding effects, oversight of scholarship granting organizations, and the inclusion of home school expenses. Supporters likely viewed the bill as expanding educational choice and leveraging federal tax credits, while opponents may have questioned accountability or the impact on public education resources.