The bill amends the existing tax credit program for contributions to scholarship organizations by expanding eligibility to include both business entities and individuals. It raises the maximum allowable tax credit amounts, allowing up to $250,000 for business entities, $200,000 for single individuals, and $400,000 for married couples filing jointly. Additionally, the total aggregate amount of tax credits approved in a fiscal year is increased to $1.6 million, with a cap of $5 million for fiscal year 2027, which will adjust annually based on inflation. The bill introduces provisions for the carryforward of unused tax credits for up to two years and prioritizes applications for continued participation of eligible students already attending qualified schools.

Furthermore, the bill increases the tax credit rate from 75% to 85% for single-year contributions and from 90% to 99% for two-year contribution plans. It specifies that contributions totaling $750,000 will be allocated for scholarships for economically disadvantaged students, with an additional $250,000 designated for pre-K scholarships. The bill also clarifies definitions related to business entities and individuals within the context of the tax credit program. Overall, these changes aim to enhance the support for scholarship organizations and increase access to educational opportunities for students.