Page 147

139 STAT. 217 PUBLIC LAW 119–21—JULY 4, 2025 ‘‘(1) IN GENERAL.—If the credit allowable under subsection (a) for any taxable year exceeds the limitation imposed by section 26(a) for such taxable year reduced by the sum of the credits allowable under this subpart (other than this sec- tion, section 23, and section 25D), such excess shall be carried to the succeeding taxable year and added to the credit allowable under subsection (a) for such taxable year. ‘‘(2) LIMITATION.—No credit may be carried forward under this subsection to any taxable year following the fifth taxable year after the taxable year in which the credit arose. For purposes of the preceding sentence, credits shall be treated as used on a first-in first-out basis. ‘‘(g) STATE LIST OF SCHOLARSHIP GRANTING ORGANIZATIONS.— ‘‘(1) LIST.— ‘‘(A) IN GENERAL.—Not later than January 1 of each calendar year (or, with respect to the first calendar year for which this section applies, as early as practicable), a State that voluntarily elects to participate under this section shall provide to the Secretary a list of the scholar- ship granting organizations that meet the requirements described in subsection (c)(5) and are located in the State. ‘‘(B) PROCESS.—The election under this paragraph shall be made by the Governor of the State or by such other individual, agency, or entity as is designated under State law to make such elections on behalf of the State with respect to Federal tax benefits. ‘‘(2) CERTIFICATION.—Each list submitted under paragraph (1) shall include a certification that the individual, agency, or entity submitting such list on behalf of the State has the authority to perform this function. ‘‘(h) REGULATIONS AND GUIDANCE.—The Secretary shall issue such regulations or other guidance as the Secretary determines necessary to carry out the purposes of this section, including regula- tions or other guidance— ‘‘(1) providing for enforcement of the requirements under subsections (d) and (g), and ‘‘(2) with respect to recordkeeping or information reporting for purposes of administering the requirements of this section.’’. (2) CONFORMING AMENDMENTS.— (A) Section 25(e)(1)(C) is amended by striking ‘‘and 25D’’ and inserting ‘‘25D, and 25F’’. (B) The table of sections for subpart A of part IV of subchapter A of chapter 1 is amended by inserting after the item relating to section 25E the following new item: ‘‘Sec. 25F. Qualified elementary and secondary education scholarships.’’. (b) EXCLUSION FROM GROSS INCOME FOR SCHOLARSHIPS FOR QUALIFIED ELEMENTARY OR SECONDARY EDUCATION EXPENSES OF ELIGIBLE STUDENTS.— (1) IN GENERAL.—Part III of subchapter B of chapter 1 is amended by inserting before section 140 the following new section: ‘‘SEC. 139K. SCHOLARSHIPS FOR QUALIFIED ELEMENTARY OR SEC- ONDARY EDUCATION EXPENSES OF ELIGIBLE STUDENTS. ‘‘(a) IN GENERAL.—In the case of an individual, gross income shall not include any amounts provided to such individual or any 26 USC 139K. 26 USC prec. 21. Deadlines.