Why it matters: The state set an application deadline for nonprofits that want to run scholarships in Iowa in 2027 of 11:59 PM on December 11, 2026.
Iowa has opened applications for nonprofit organizations to serve as Scholarship Granting Organizations (SGOs) under the new federal Education Freedom Tax Credit program, Gov. Kim Reynolds' office announced on Oct. 30, 2026. The program begins in 2027.
What the program is. According to the state's release, the credit was created in the One Big Beautiful Bill Act, signed July 4, 2025. Taxpayers who make qualifying cash contributions to approved SGOs in participating states can claim a dollar-for-dollar, nonrefundable federal income tax credit. The cap is $1,700 a year for individuals and $3,400 for married couples filing jointly. The SGOs use the contributions to fund scholarships for eligible K-12 students.
Who is eligible. Students qualify if their family income is below 300% of their area median income. The release says scholarships may support students attending public schools, public charter schools and nonpublic schools in Iowa, per the governor's office.
Deadline for nonprofits. Under the state's rules, SGOs are eligible 501(c)(3) organizations, and nonprofits that want to take part in 2027 complete the Iowa Scholarship Granting Organization application on the Iowa Department of Revenue's website by 11:59 p.m. on Dec. 11, 2026.
What happens next. Contributions that qualify for the federal credit can be made only after Iowa submits its official list of eligible SGOs to the IRS, which the state expects to do in early 2027. The approved list will then be posted on the Iowa Department of Revenue's webpage, the release says.
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How we checked this: We read the Iowa governor's Oct 30, 2026 release in a copy saved on Nov 1, 2026 at 7:20 PM ET, and checked each date, amount and rule in this story against it.
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