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26 U.S.C. §26(a): The limit on non-refundable credits
The overall cap on non-refundable personal credits, which the scholarship credit is one of. It's why the credit can't be more than the tax you owe.
- Status
- Published
The official text
As published on uscode.house.gov, copied September 28, 2026. The official copy is the one that counts.
(a) Limitation based on amount of tax
The aggregate amount of credits allowed by this subpart for the taxable year shall not exceed the sum of-
(1) the taxpayer's regular tax liability for the taxable year reduced by the foreign tax credit allowable under section 27, and
(2) the tax imposed by section 55(a) for the taxable year.
On this site
Where we use it
The pages whose rules and figures come from §26(a).