S. 5322

Federal Tax Credit Scholarship Improvement Act

Shown here: Introduced in Senate (2026-08-06)

To amend the Internal Revenue Code of 1986 to modify the credit amount for qualified elementary and secondary education scholarships.

1. Short title

This Act may be cited as the “Federal Tax Credit Scholarship Improvement Act”.

2. Treatment of joint returns; inflation adjustment

(a) In general

Paragraph (1) of section 25F(b) of the Internal Revenue Code of 1986 is amended to read as follows:

(1) Dollar limitation
For purposes of this section—
(A) In general
The credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed the applicable amount (twice such amount in the case of a joint return).
(B) Applicable amount
The applicable amount is $1,700.
(C) Adjustment for inflation
(i) In general
In the case of a taxable year beginning after December 31, 2026, the $1,700 amount under subparagraph (B) shall be increased by an amount equal to—
(I) such amount, multiplied by
(II) the cost-of-living adjustment determined under section 1(f)(3) by substituting “calendar year 2025” for “calendar year 2016” in subparagraph (A)(ii) thereof.
(ii) Rounding
If any increase determined under clause (i) is not a multiple of $50, such increase shall be rounded to the nearest multiple of $50.
(iii) Publication of adjusted amount
Not later than November 1 of each calendar year, the Secretary shall publish the adjusted limitation applicable for the following taxable year.

(b) Effective date

The amendment made by this section shall apply to taxable years beginning after December 31, 2025.

Workspace/Typeset/Bill