A scholarship from such an organization is not counted as income
What the document says“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.”
The section adds a new section 139K to part III of subchapter B of chapter 1 of the Internal Revenue Code of 1986 leaving out of gross income amounts given to an individual or a dependent under a scholarship for qualified elementary or secondary education expenses of an eligible student, provided by a scholarship granting organization, with the defined terms taking their meaning from section 25F(c).
What the document actually says“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.”
A scholarship from such a group is not counted as income. That holds for the student or a dependent.
So no tax is owed on it. The money must go to school costs. The group must be one of those listed by a state.
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