S 161

 BILL AS INTRODUCED  S.161
 2026  Page 1 of 3
1S.161
2 Introduced by Senator Bongartz
3 Referred to Committee on
4 Date:
5 Subject: Taxation; income tax; federal tax credit; scholarships; executive
6authority
7 Statement of purpose of bill as introduced: This bill proposes to create a
8 structure for the Governor to make a list of scholarship granting organizations
9 so that the associated federal tax credit for contributions to such organizations
10 is available for Vermont taxpayers.
11    An act relating to the Governor’s list of scholarship granting organizations
12 It is hereby enacted by the General Assembly of the State of Vermont:
13 Sec. 1. 3 V.S.A. § 24 is added to read:
14 § 24. GOVERNOR’S LIST OF SCHOLARSHIP GRANTING
15ORGANIZATIONS
16    (a) Annually on December 1, the Governor, or designee, may elect to
17 provide a list of organizations that satisfy the conditions of subsection (b) of
18 this section to the U.S. Secretary of the Treasury for purposes of making the
19 federal qualified elementary and secondary education scholarship tax credit
20 available for Vermont taxpayers under 26 U.S.C. § 25F. It shall be presumed
                                                                     VT LEG #385000 v.4
 BILL AS INTRODUCED  S.161
 2026  Page 2 of 3
1 that an organization listed in the previous year will be listed in the subsequent
2 year unless the Governor finds that the organization has failed to meet the
3 requirements of this section.
4    (b) An organization shall not be listed unless the organization meets the
5 following criteria:
6(1) it qualifies as a “scholarship granting organization” as defined under
7 26 U.S.C. § 25F(c)(5);
8(2) it is a nonprofit organization with the core mission of providing
9 educational opportunities to economically underprivileged students through
10 afterschool, summer tutoring, and similar programs; and
11(3) all grants and scholarships provided by the organization are to
12 students attending a public school, as defined in 16 V.S.A. § 11(7), or an
13 independent school, as defined in 16 V.S.A. § 11(8), that is also capable of
14 receiving public tuition.
15    (c) In the Governor’s discretion, the Governor may audit an organization
16 seeking placement on the list to ensure the organization meets all the
17 requirements for placement as provided by this section and applicable federal
18 law. The Governor shall not list an organization that the Governor knows is
19 not in compliance with the requirements of this section or 26 U.S.C.
20 § 25F(c)(5).
                                                                    VT LEG #385000 v.4
BILL AS INTRODUCED  S.161
2026  Page 3 of 3
1 Sec. 2. EFFECTIVE DATE
2   This act shall take effect on July 1, 2026.
                                                VT LEG #385000 v.4