Bill > HF811

This bill repeals the School Tuition Organization (STO) tax credit for individual and corporate income taxes, effectively phasing out the program in stages. Under the proposed legislation, taxpayers will no longer be able to claim tax credits for contributions made to STOs on or after July 1, 2025. The bill reduces the total amount of approved STO tax credits for calendar year 2025 from $20 million to $10 million, reflecting the mid-year elimination of the credit. Specifically, the bill modifies existing tax code to restrict tax credit certificates for STO contributions only to those made before July 1, 2025, and includes a full repeal of the STO tax credit provision on July 1, 2031, to account for potential tax credit carryforward capabilities. Additionally, the bill removes related references to the STO tax credit in other sections of the state code, ensuring a comprehensive elimination of the tax credit program. The legislation aims to phase out this specific tax credit mechanism while providing a gradual transition period for taxpayers and organizations currently utilizing the STO tax credit.

Education

https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=HF811