Statewide Iowa (RI) — Governor Kim Reynolds has opted Iowa into a federal program designed to financially reward some donors to private school scholarships.
Starting in 2027, Iowans who donate to a non-profit that provides scholarships to low-income students in private K-12 schools will quality for a tax credit worth up to $1,700.
Since 2007, there has been a similar state income tax credit worth 75% of donations Iowans make to a private School Tuition Organization.
U.S. Education Secretary Linda McMahon mentioned the new federal tax credit during her visit to Denison.
In 2022, Reynolds successfully campaigned for primary candidates who defeated fellow Republicans who’d voted against the governor’s initial plan to offer state-funded private school scholarships for students leaving low-performing public schools.
The next year, the legislature passed the governor’s current plan that’s now available for all students enrolled in private schools. This year, nearly $8,000 is available for each private school student whose parent signs up for a state-funded Education Savings Account.
KIWA Staff Photo
