Iowa House Bill HF811

Iowa 2025-2026 Regular Session

• Introduced: 3/6/25
• Refer: 3/6/25

Caption

A bill for an act repealing the school tuition organization tax credit available against the individual and corporate income taxes and including effective date provisions.

Impact

If enacted, HF811 would effectively phase out the STO tax credit, culminating in a complete repeal by July 1, 2031. This change would deeply affect how taxpayers can leverage credits associated with donations to STOs, which fund scholarships for students attending private schools. Opponents of the bill might argue that this would diminish financial support for educational alternatives to public schooling, potentially impacting student enrollment in charter or private schools funded by such credits.

Summary

House File 811 proposes the repeal of the school tuition organization (STO) tax credit that is presently available against individual and corporate income taxes in Iowa. The bill establishes that contributions made to STOs after July 1, 2025, will not be eligible for tax credits, significantly altering the existing framework that allows taxpayers to receive credits for their contributions. Additionally, the bill mandates a reduction in the total approved tax credits for calendar year 2025, bringing it down from $20 million to $10 million, given the impending repeal.

Contention

The discussions surrounding HF811 likely involve notable points of contention regarding educational funding and the role of private scholarships in Iowa's education system. Proponents may argue that eliminating these tax credits could save state funds and redirect them towards improving public education. In contrast, opponents may frame the repeal as a move that undermines parental choice and limits opportunities for families seeking different educational pathways for their children.