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139 STAT. 215 PUBLIC LAW 119–21—JULY 4, 2025 adjusted gross income for the taxable year exceeds $75,000 ($150,000 in the case of a joint return).’’. (b) EFFECTIVE DATE.—The amendment made by this section shall apply to taxable years beginning after December 31, 2025. Subchapter B—Permanent Investments in Students and Reforms to Tax-exempt Institutions SEC. 70411. TAX CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO SCHOLARSHIP GRANTING ORGANIZATIONS. (a) ALLOWANCE OF CREDIT FOR CONTRIBUTIONS OF INDIVIDUALS TO SCHOLARSHIP GRANTING ORGANIZATIONS.— (1) IN GENERAL.—Subpart A of part IV of subchapter A of chapter 1 is amended by inserting after section 25E the following new section: ‘‘SEC. 25F. QUALIFIED ELEMENTARY AND SECONDARY EDUCATION SCHOLARSHIPS. ‘‘(a) ALLOWANCE OF CREDIT.—In the case of an individual who is a citizen or resident of the United States (within the meaning of section 7701(a)(9)), there shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to the aggregate amount of qualified contributions made by the taxpayer during the taxable year. ‘‘(b) LIMITATIONS.— ‘‘(1) IN GENERAL.—The credit allowed under subsection (a) to any taxpayer for any taxable year shall not exceed $1,700. ‘‘(2) REDUCTION BASED ON STATE CREDIT.—The amount allowed as a credit under subsection (a) for a taxable year shall be reduced by the amount allowed as a credit on any State tax return of the taxpayer for qualified contributions made by the taxpayer during the taxable year. ‘‘(c) DEFINITIONS.—For purposes of this section— ‘‘(1) COVERED STATE.—The term ‘covered State’ means one of the States, or the District of Columbia, that, for a calendar year, voluntarily elects to participate under this section and to identify scholarship granting organizations in the State, in accordance with subsection (g). ‘‘(2) ELIGIBLE STUDENT.—The term ‘eligible student’ means an individual who— ‘‘(A) is a member of a household with an income which, for the calendar year prior to the date of the application for a scholarship, is not greater than 300 percent of the area median gross income (as such term is used in section 42), and ‘‘(B) is eligible to enroll in a public elementary or secondary school. ‘‘(3) QUALIFIED CONTRIBUTION.—The term ‘qualified con- tribution’ means a charitable contribution of cash to a scholar- ship granting organization that uses the contribution to fund scholarships for eligible students solely within the State in which the organization is listed pursuant to subsection (g). ‘‘(4) QUALIFIED ELEMENTARY OR SECONDARY EDUCATION EXPENSE.—The term ‘qualified elementary or secondary edu- cation expense’ means any expense of an eligible student which is described in section 530(b)(3)(A). 26 USC 25F. 26 USC 21 note.