HF 2755 (LSB 6112HV (3) 91)

HOUSE FILE 2755

BY  COMMITTEE ON WAYS AND MEANS

(SUCCESSOR TO HF 2308)

A BILL FOR

An Act relating to state participation in the federal tax credit program for individual contributions to scholarship granting organizations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  SCHOLARSHIP GRANTING PROGRAM.
   1.  The governor shall elect to participate in the federal tax credit established by section 25F of the Internal Revenue Code for individuals who make qualified contributions to scholarship granting organizations.
   2.  The department of revenue and the department of education shall follow all federal laws and regulations to administer the federal tax credit established by section 25F of the Internal Revenue Code to ensure the state is eligible to participate in tax years beginning on or after January 1, 2027, and shall annually submit all required information to the secretary of the treasury of the United States for participation.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to participation in the federal tax credit program for individual contributions to scholarship granting organizations. A scholarship granting organization is a nonprofit entity that provides scholarships to pay qualified elementary or secondary expenses of eligible students attending elementary or secondary school. Eligible expenses include tuition, fees, tutoring, and other educational supports for students attending public or private schools. A scholarship granting organization may provide scholarships to eligible students in an amount not to exceed $1,700 per year.
   The bill requires the governor to elect to participate in the federal tax credit established by section 25F of the Internal Revenue Code (IRC). The bill requires the department of revenue and the department of education follow all federal laws and regulations to administer the federal tax credit established by section 25F of the IRC to ensure the state is eligible to participate in tax years beginning on or after January 1, 2027, and shall annually submit all required information to the secretary of the treasury of the United States for participation.