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(Iowa) -- The state of Iowa will opt into a federal education tax credit program.
Governor Kim Reynolds announced Monday that the state will enter the program set to begin in 2027. The program will provide a match of up to $1,700 to eligible taxpayers who contribute to approved scholarship granting organizations that will be required to use the contributions for scholarships to qualifying K-12 students. Taxpayers who contribute up to $1,700 will receive the full amount back as a federal tax credit. To qualify to receive a scholarship, students must be part of a family with an income of below 300% of their area median household income.
The program was outlined in the One Big Beautiful Bill Act signed on July 4th of last year. The Office of the Governor and the Iowa Department of Education will certify eligible scholarship granting organizations to participate in the program.
