Public Law 119-21 · §70411(b)(1) · enacted July 4, 2025
§139K. Exclusion from Gross Income for Qualified ECCA Scholarships
(a)In general
In the case of an individual, gross income shall not include any amounts provided to such individual or any dependent of such individual pursuant to a scholarship for qualified elementary or secondary education expenses of an eligible student which is provided by a scholarship granting organization.
(b)Definitions
In this section, the terms “qualified elementary or secondary education expense,” “eligible student,” and “scholarship granting organization” have the same meaning given such terms under section 25F(c).
Effective date: applies to amounts received after December 31, 2026, in taxable years ending after that date, per §70411(c)(2) of Public Law 119-21.
Note, October 1, 2026: subsection (b) borrows its definitions from §25F(c). Treasury’s proposed §25F regulations (not final) define those terms for §25F purposes, for example measuring household income under HUD’s Section 8 method and tying qualified expenses to §530(b)(3)(A) and forthcoming §530 guidance. The proposal does not separately address §139K.
