Federal Tax Credit Scholarship Improvement Act

This bill proposes significant changes to the existing tax credit for qualified elementary and secondary education scholarships by amending the Internal Revenue Code. It establishes a new base credit amount of $1,700 per taxpayer, which is doubled to $3,400 for those filing a joint return . Furthermore, the legislation introduces an important mechanism for inflation adjustment to the $1,700 credit amount. Beginning with taxable years after December 31, 2026, the credit will be annually increased based on cost-of-living adjustments, with specific rounding rules. These changes aim to enhance the value and accessibility of the education scholarship tax credit.