Senate Bill 2195 amends Tennessee Code Annotated, Title 49, by introducing a new part that establishes a federal scholarship tax credit election. The bill mandates that the Department of Education participate in the federal tax credit program outlined in Section 70411 of Pub. L. No. 119-21, which benefits individuals making qualified contributions to scholarship granting organizations. Additionally, the Department is required to compile and submit an annual list of eligible scholarship granting organizations to the United States Secretary of the Treasury, ensuring compliance with federal regulations to maintain the state's eligibility for the program starting in taxable years after December 31, 2026.

The bill also specifies that no state department, agency, or board has the authority to create rules to implement this section, thereby centralizing the responsibility within the Department of Education. The act is set to take effect upon becoming law, emphasizing its importance for public welfare.