Senate Bill 2206, also known as the "Federal Tax Credit Scholarship Act," amends Tennessee Code Annotated by adding a new part to Title 49. This legislation allows the commissioner of education to participate in a federal tax credit program for individuals who make qualified contributions to scholarship granting organizations, as established under Section 70411 of Pub. L. No. 119-21. The bill mandates the Department of Education to certify and publish a list of eligible scholarship granting organizations that comply with the requirements of the Internal Revenue Code, specifically 26 U.S.C. 25F. Additionally, the department is authorized to create rules for the qualification process of these organizations and may collaborate with other state agencies to fulfill the requirements.

Furthermore, the bill stipulates that the Department of Education must adhere to all federal regulations related to the administration of the tax credit to ensure state eligibility for participation starting in taxable years after December 31, 2026. Qualifying scholarship granting organizations listed by the department will be permitted to provide scholarships for various educational expenses, including those related to homeschooling, in accordance with federal law. The act will take effect upon becoming law, emphasizing its urgency for public welfare.