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.

II119th CONGRESS2d SessionS. 5322IN THE SENATE OF THE UNITED STATESAugust 6, 2026Mrs. Hyde-Smith introduced the following bill; which was read twice and referred to the Committee on FinanceA BILLTo 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.