State opens interest form for nonprofits that would run federal education tax credit scholarships
Tennessee is one of 30 states to elect to take part; the form is open to would-be scholarship granting organizations
NASHVILLE - The Tennessee Department of Education opened a preliminary interest form on Oct. 7 for nonprofits that want to become scholarship granting organizations under the federal education tax credit program, according to a department news release.
The department said Tennessee is one of 30 states that have made an advance election to participate so far. Federal temporary regulations released last Thursday set requirements for states to make that election and for organizations to be certified. The scholarship groups are nonprofits that accept contributions and fund scholarships; the release says they must spend at least 90 percent of their income on scholarships for tuition, fees, tutoring and classroom supplies for eligible K-12 students.
The release says more information on eligible expenses will be available later this fall from the U.S. Department of the Treasury. Questions go to SGO.Questions@tn.gov.
Source: Tennessee Department of Education, "Tennessee Advances Participation in the Federal Education Tax Credit Program," Oct. 7, 2026 - https://www.tn.gov/education/news/2026/10/7/tennessee-advances-participation-in-the-federal-education-tax-credit-program-.html