Iowa
Opted in on January 5, 2026
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Kim Reynolds
Governor , R
“Iowa believes in empowering every student and family with world-class educational options. The Trump Administration's federal tax credit will complement Iowa's existing programs, expanding opportunity even further.”
Governor Kim Reynolds, January 5, 2026 (Governor's Office press release)
FSTC Status in Iowa
Governor Kim Reynolds announced Iowa's participation on January 5, 2026, one of the earliest states.
Great news!
Iowa has opted in to the Federal Scholarship Tax Credit (FSTC).
Gubernatorial announcement; one of the earliest states to announce participation.
FSTC Readiness Checklist for Iowa Schools
Iowa has opted in to the FSTC. Use this 7-step checklist to prepare your school for participation.
Confirm Eligibility
Verify your school is an eligible K-12 institution (private, religious, or homeschool cooperative) under FSTC program rules.
Identify SGOs
Research which Scholarship Granting Organizations operate in Iowa. Contact them to understand application processes and timelines.
Estimate Family Eligibility
Use the FSTC Income Eligibility Calculator to estimate how many of your families fall within the 300% median income threshold.
Open CalculatorPrepare Documentation
Gather documentation of qualifying educational expenses: tuition, fees, tutoring, curriculum materials, and educational therapy costs.
Designate a Coordinator
Assign an FSTC coordinator to manage scholarship applications, SGO partnerships, and family communications.
Develop Communication Plan
Create materials to inform families about FSTC eligibility, the application process, and covered expenses. Plan for information sessions and one-on-one support.
Build SGO Relationships
Establish relationships with at least one SGO before the application window opens. Understand their requirements, reporting expectations, and disbursement timelines.
Recent News
On June 8, 2026, the IRS announced (IR-2026-76) that 27 states had elected to participate in the new federal scholarship tax credit program created by the One Big Beautiful Bill, and it listed Iowa among them. Participation confirms Iowa's federal opt-in ahead of the program's January 1, 2027 start, when eligible taxpayers can claim a credit of up to $1,700 for contributions to Scholarship Granting Organizations.
· Internal Revenue Service (IR-2026-76)
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