DES MOINES— Today, Governor Kim Reynolds announced her plan to opt into a federal education tax credit program, set to begin in 2027, that will expand school choice in Iowa.  

“Iowa believes in empowering every student and family with world-class educational options — from our K-12 public schools to public charter schools, accredited private schools, and homeschooling — so they can choose the best place and path for their future,” Governor Kim Reynolds said.  “The Trump Administration’s federal tax credit will complement Iowa’s existing programs, expanding opportunity even further while reinforcing the state’s commitment to school choice.” 

Outlined in the One Big Beautiful Bill Act signed on July 4, 2025, the federally funded tax credit program will provide a direct dollar-for-dollar tax credit match up to $1,700 for eligible taxpayers who contribute to approved scholarship granting organizations (SGOs). Participating taxpayers may donate up to $1,700 and receive the full amount back as a federal tax credit, allowing donors to support students at no cost to themselves. SGOs will be required to use these contributions for scholarships to eligible K-12 students across Iowa. Students eligible to receive scholarships through the federal tax credit program must have a family income below 300% of their area median income (AMI). 

The Office of the Governor will work with the Iowa Department of Education to certify eligible SGOs to participate in the federal tax credit program. In accordance with federal law, the program will go into effect in 2027.