An Act amending the act of March 10, 1949 (P.L.30, No.14), known as the Public School Code of 1949, in educational tax credits, further providing for definitions and providing for compliance with Federal tax credit for contributions to scholarship organizations.

HB 1763 aligns Pennsylvania's tax credit program with a federal tax credit for contributions to scholarship organizations. It requires scholarship organizations in Pennsylvania to verify their tax-exempt status, maintain separate accounts for scholarship funds, provide scholarships to at least 10 students from different schools, spend 90% of income on scholarships, and verify applicants' household income to ensure eligibility. Organizations must submit compliance documentation by June 1, 2026, and annually thereafter, with the state department confirming their eligibility for the federal tax credit. This directly affects scholarship organizations seeking to participate in the federal tax credit program, ensuring they meet federal requirements to allow donors to claim tax benefits.