A last minute provision in an education bill could mean a new corporate tax credit to benefit private schools, if the governor signs the change into law. Currently, individual contributors to private school scholarship funds receive a significant income tax credit.
Under the new law, that tax break would extend to corporations. Representative Cindy Winckler, a Democrat from Davenport, says the cost to the state treasury will still be capped at seven-point-five million dollars. "They had not reached their limit on the 7.5 million dollar cap so they extended it to corporate entities who could contribute and get the tax credit," Winckler says.
The senate unanimously approved the change. Winckler says the house had reservations about yet another tax credit when the state treasury is under siege. "Those were the conversations that occurred in our democratic caucus when we were identifying the differences between the house and senate version. It had not even been discussed in the house. So as you work on compromise however, the senate felt strongly about keeping that in," Winckler says.
The change was a top priority for private schools for this year’s legislative session.