| Scholarship or Voucher Value: |
Parents receive a tax credit worth 25 percent of their expenditures, up to a maximum credit of $250 per family. To get the maximum $250 credit, parents must spend $1,000 in educational expenses; they also must have a state tax liability of at least $250 because the credit is non-refundable and thus cannot reduce an individual’s tax burden to less than zero.
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| Student or School Participation: |
In 2004, 171,600 families saved about $14.3 million by claiming the tax credit. More than half of the dollar value of the credits went to families with incomes below $50,000 per year. The average claim was worth $83.
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| Student Eligibility: |
All students enrolled in accredited non-profit public or private elementary or secondary schools in Iowa are eligible. |
| Legal Status of Program: |
No legal challenges have been filed against the program.
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| Regulations on the Program: |
Expenses for religious instruction are ineligible for the tax credit; schools may itemize the portion of tuition and other expenses that apply to religious instruction so that parents can claim the tax credit on the remaining expenses. Schools must be non-profit and comply with civil rights laws.
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| Research on Program: |
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| News on Program: |
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| Governing Statutes: |
Iowa Code, Section 422.12
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