Gov. Kim Reynolds announced today that Iowa will opt into a new federal education tax credit program aimed at expanding school choice, with the program set to begin in 2027.
The plan allows eligible taxpayers to receive a dollar-for-dollar federal tax credit of up to $1,700 for donations made to approved scholarship-granting organizations, or SGOs. Those organizations would then use the funds to provide scholarships for eligible K-12 students across Iowa.
Under the program, families must have incomes below 300 percent of their area median income to qualify for scholarships. State officials say the program is designed to support a range of education options, including public schools, public charter schools, accredited private schools and homeschooling.
The governor’s office will work with the Iowa Department of Education to certify which SGOs can participate.
The tax credit program was authorized under federal legislation signed last year and, under federal law, will take effect in 2027.
