Enacted in 1987 and expanded during the 2021 Iowa state legislative session, this state income tax credit now gives parents of public, private and home school students a tax credit to help with educational expenses:
- Effective for tax year 2021: Tax credit is equal to maximum 25% of the first $2,000 (up to $500) paid for each child in grades K-12 for tuition and textbooks, each school year.
- Definition of “textbooks” includes expenses for materials used in extra-curriculars such as drama, sports, driver’s education, and similar programs.
- Parents claim this credit on their Iowa income tax return.
- This program helps parents offset some of the expense of choosing private education options, as well as all the extras of public education.
- This tax credit is available to parents of public, private and home school students
