Iowa will opt into a federal education tax credit program that will expand school choice in the state, Gov. Kim Reynolds announced. The federally funded tax credit program, outlined in the One Big Beautiful Act, will provide a direct dollar-for-dollar tax credit match up to $1,700 for eligible taxpayers who contribute to approved scholarship granting organizations. The organizations will be required to use these contributions for scholarships to eligible K-12 students across Iowa. Students eligible to receive scholarships through the federal tax credit program must have a family income below 300% of their area median income. Reynolds said that the governor’s office will work with the Iowa Department of Education to certify eligible organizations to participate in the federal tax credit program, which begins in 2027.