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HF 2308

A bill for an act relating to state participation in the federal tax credit program for individual contributions to scholarship granting organizations.

2025-2026 Regular Session Introduced by Samantha Fett

Iowa enables state tax credits for individual donations to scholarship granting organizations, funding private school scholarships through foregone tax revenue.

Committee report approving bill, renumbered as HF 2755.
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Bill Summary · HF 2308

Legislative bill overview

HF 2308 authorizes Iowa to participate in a federal tax credit program that allows individuals to receive state tax credits for contributions to scholarship granting organizations (SGOs). These organizations distribute scholarships to students, typically for private school tuition or educational expenses. The bill enables Iowa taxpayers to redirect a portion of their state tax liability toward education scholarships while receiving a tax benefit.

Why is this important

This policy creates a mechanism to fund private school scholarships through tax credits rather than direct state appropriations, potentially expanding educational choice. It affects state revenue, the distribution of education funding, and access to private school options for families who might not otherwise afford them. The program's design and participation level will determine its fiscal impact on the state budget.

Potential points of contention

  • State revenue impact: Tax credits reduce state income tax collections; the bill's cost depends on participation rates and credit amounts, which affect other state spending priorities
  • Educational equity concerns: SGO scholarships may benefit higher-income families more than low-income families, potentially widening educational access gaps rather than closing them
  • Accountability and oversight: Questions about how SGOs are regulated, how scholarships are awarded, whether funds reach underserved populations, and transparency requirements for fund usage

Compiled from official sources — confirm details with the bill’s official record.

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