Assembly Bill 602 mandates the governor of Wisconsin to elect participation in the federal tax credit program for contributions to scholarship granting organizations, as established by the federal One Big Beautiful Bill Act of 2025. This election must be made by July 1, 2026, and will allow individuals making qualifying contributions to benefit from the tax credit starting with the taxable year after December 31, 2026. The bill also requires the Department of Administration to compile and submit an annual list of eligible scholarship granting organizations to the U.S. Secretary of the Treasury, ensuring compliance with federal regulations to maintain the state's eligibility for the program.

To facilitate this process, the bill creates a new statute, 16.004 (25), which outlines the responsibilities of the Department of Administration in certifying the list of qualifying organizations and adhering to federal guidelines. This legislative action aims to enhance educational funding opportunities through tax incentives for contributions to scholarship programs within Wisconsin.