H 770

 BILL AS INTRODUCED  H.770
 2026  Page 1 of 2
1H.770
2 Introduced by Representatives Conlon of Cornwall and Kornheiser of
3Brattleboro
4 Referred to Committee on
5 Date:
6 Subject: Taxation; income tax; federal tax credit; scholarships; executive
7authority
8 Statement of purpose of bill as introduced: This bill proposes to preclude
9 Vermont’s participation in the federal tax credit program for contributions to
10 scholarship granting organizations.
11    An act relating to opting out of the federal tax credit program for
12    contributions to scholarship granting organizations
13 It is hereby enacted by the General Assembly of the State of Vermont:
14 Sec. 1. FINDINGS
15    The General Assembly finds:
16(1) Section 25F of the Internal Revenue Code creates a new federal
17 program to subsidize scholarships for expenses at public and private schools.
18(2) Under the terms of the statute, states may voluntarily elect to
19 participate in the program, or they may decline to participate.
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 BILL AS INTRODUCED  H.770
 2026  Page 2 of 2
1(3) The decision concerning whether or not to participate in the program
2 is to be made by “the Governor of the State or by such other individual,
3 agency, or entity as is designated under State law to make such elections on
4 behalf of the State with respect to Federal tax benefits.”
5 Sec. 2. 2 V.S.A. § 24 is added to read:
6 § 24. DESIGNATED ENTITY; PARTICIPATION IN FEDERAL TAX
7CREDIT PROGRAM
8    (a) In accordance with 26 U.S.C. § 25F(g)(1)(B), the General Assembly
9 designates itself as the sole entity to make an election under 26 U.S.C. § 25F.
10    (b) Vermont shall not participate in the federal tax credit program for
11 contributions to scholarship granting organizations under 26 U.S.C. § 25F.
12    (c) Any election to the contrary made by another State official or entity is
13 void and shall have no effect.
14 Sec. 3. EFFECTIVE DATE
15    This act shall take effect on July 1, 2026.
                                                                   VT LEG #385542 v.5