[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 5322 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 5322

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


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                   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

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                                 A BILL


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

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Tax Credit Scholarship 
Improvement Act''.

SEC. 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.
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