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Will Federal Tax-Credit Scholarships Help Public School Students?
Iowa will provide up to $1,700 federal tax credits for donations to scholarship organizations supporting K-12 students from families earning less than 300% of area median income.
- DES MOINES — Governor Kim Reynolds announced Iowa will join the federal tax credit program outlined in the One Big Beautiful Bill Act, signed on July 4, 2025, effective following the signing.
- Under the federal measure, legislation set up a pathway for donations to scholarship‑granting organizations to fund K‑12 scholarships, effective in 2027.
- Donors can contribute up to $1,700 and receive that amount back as a federal tax credit, while SGOs must use funds for K-12 scholarships for families earning less than 300% of their area median income.
- Building on state policy, Reynolds said the federal tax credit will complement Iowa's state education programs and provide more resources for parents, adding to School Tuition Organizations and 41,044 students on state‑funded ESAs this year.
- The Governor's Office will work with the Iowa Department of Education to certify eligible SGOs, and federal law restricts scholarship use to tuition, books, technology, and other qualified expenses.
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32 Articles
Mason City Globe GazetteReposted by 
The Daily Nonpareil - Council Bluffs, Iowa…
The Daily Nonpareil - Council Bluffs, Iowa…Iowa joins federal school choice tax credit program
The program creates a federally funded, dollar-for-dollar tax credit match up to $1,700 for eligible taxpayers who contributed to approved scholarship granting organizations.
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Total News Sources32
Leaning Left2Leaning Right1Center23Last UpdatedBias Distribution88% Center
Bias Distribution
- 88% of the sources are Center
88% Center
C 88%
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