The bill S.161, introduced by Senator Bongartz, aims to establish a framework for the Governor of Vermont to create an annual list of scholarship granting organizations. This list will enable Vermont taxpayers to access a federal tax credit for contributions made to these organizations, as outlined in 26 U.S.C. 25F. The Governor, or a designated representative, will provide this list to the U.S. Secretary of the Treasury by December 1 each year. Organizations will be presumed to remain on the list unless the Governor determines they no longer meet the specified criteria.

To qualify for inclusion on the list, organizations must be nonprofit entities focused on providing educational opportunities to economically disadvantaged students through various programs, and all scholarships must be directed to students attending public or eligible independent schools. The Governor has the authority to audit organizations to ensure compliance with the requirements set forth in the bill and relevant federal law. The act is set to take effect on July 1, 2026.