New Federal K-12 Scholarship Tax Credit Starting in 2027
The One Big Beautiful Bill Act establishes the first-ever federal K-12 scholarship tax credit, effective in 2027. This groundbreaking program allows donors to fund scholarships through approved nonprofit organizations in exchange for a dollar-for-dollar federal tax credit — up to $1,700 per taxpayer per year — with no national or state-level caps on total credits.
IACS is working with the Alliance for Choice in Education (Iowa ACE) to streamline the process for what we hope will be a state-wide Scholarship Granting Organization (SGO) under Iowa ACE. More details will be released as we get them.