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 $1700.
“Next year we can further expand educational options,” Reynolds said, “…empowering Iowa to improve student outcomes.”
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 yesterday.
“This is a momentous step to break away from top down mandates and expand ‘School Choice,’ and I know how hard Governor Reynolds worked for ‘School Choice’ over two terms, really battling to get it through, but she did it,” McMahan said. “…Thank you for setting a standard of leadership that inspires the entire nation.”
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 $8000 is available for each private school student whose parent signs up for a state-funded Education Savings Account.