Branstad Signs Bill to Expand Tax Credits for Private School Scholarship Donations

(Source: Charter Pulse)

(Source: Charter Pulse)

This session House Republicans passed House File 625, a bill that greatly improves school choice options.  You can see the bill analysis by clicking here.

From the Des Moines Register

By Jason Noble

Businesses as well as individuals will soon be able to take advantage of a tax credit for contributions to private-school scholarships. More money will be available for the credits under legislation signed into law Tuesday by Iowa Gov. Terry Branstad.

House File 625 expands the state’s existing school tuition organization tax credit, raising its annual cap to $12 million, from $8.75 million, and making it available to estates, trusts and businesses that are organized as partnerships, limited liability companies, s-corporations.

Under current law, only individuals can receive the tax credit.

The program provides a tax credit worth 65 percent of the amount a taxpayers gives to a student tuition organization that is set up to provide scholarships for students attending private schools.

The measure had wide and bipartisan support, passing unanimously in both the House and Senate last month.