Iowa Launches Scholarship Granting Organization Application for the New Federal Education Freedom Tax Credit Program
Iowa Governor Kim Reynolds announced on October 30 the launch of the Iowa Scholarship Granting Organization (SGO) application, inviting nonprofit organizations to apply to serve as scholarship granting organizations in Iowa for the new federal Education Freedom Tax Credit program. Interested nonprofits must complete the application, accessible on the Iowa Department of Revenue's website, by 11:59 p.m. on December 11, 2026, to serve as an SGO in Iowa in 2027.
"Iowa believes in empowering every student and family with world-class educational options so they can choose the best place and path for their future," Reynolds said, adding that the federal credit complements existing statewide programs and that today's launch is the next step toward making the no-cost investment in Iowa students a reality.
The program, outlined in the One Big Beautiful Bill Act signed on July 4, 2025, is the first federal tax credit supporting private contributions for K-12 scholarships and is set to begin in 2027. Individual taxpayers will be able to claim a dollar-for-dollar nonrefundable federal income tax credit of up to $1,700 annually for qualified cash contributions to approved SGOs; married couples filing jointly can claim a combined credit of up to $3,400.
Students eligible for scholarships must have a family income below 300 percent of their area median income. If 20 percent of all Iowa taxpayers participate, an estimated $528.1 million in scholarships would be generated each year, which could support around 519,553 eligible K-12 students across public, public charter, and nonpublic schools in Iowa. The first eligible contributions can be made after the state submits its official list of eligible SGOs to the IRS in early 2027.
Source: GSM · USA (original Chinese edition)
Photo: 图：位于得梅因的爱荷华州议会大厦。Paul R. Burley 摄，CC BY-SA 4.0，经 Wikimedia Commons。 / The Iowa State Capitol in Des Moines. Photo by Paul R. Burley, CC BY-SA 4.0, via Wikimedia Commons.
