S. 5322

119 S5322 IS: Federal Tax Credit Scholarship Improvement Act
 U.S. Senate
 2026-08-06
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II  119th CONGRESS  2d Session  S. 5322  IN THE SENATE OF THE UNITED STATES   August 6, 2026   Mrs. Hyde-Smith  introduced the following bill; which was read twice and referred to the  Committee on Finance    A BILL
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.