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Bill > HF2152

IA HF2152

IA HF2152
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.

summary

Introduced
01/26/2026
In Committee
01/26/2026
Crossed Over
Passed
Dead

Introduced Session

91st General Assembly

Bill Summary

This bill repeals the school tuition organization (STO) tax credit available against the individual and corporate income taxes. DIVISION I. Under the bill, a contribution made by a taxpayer to an STO on or after July 1, 2026, shall not be used by the taxpayer as a tax credit to reduce the individual or corporate income tax. The bill prohibits an STO from issuing tax credit certificates for contributions made to the STO on or after July 1, 2026. The bill reduces the total amount of approved STO tax credits that may be issued in calendar year 2026 from $20 million to $10 million due to the repeal occurring at the midpoint of the calendar year. The bill strikes the credit occurring each calendar year after calendar year 2026. The bill repeals Code section 422.11S (STO tax credit) on July 1, 2032, due to the carryforward capability of the tax credit in Code section 422.11S(3). DIVISION II. The bill strikes internal references to Code section 422.11S on the date that the Code section is repealed. This division takes effect on July 1, 2032.

AI Summary

This bill repeals the school tuition organization (STO) tax credit, which allows individuals and corporations to reduce their income taxes based on contributions made to STOs, which are organizations that provide scholarships for students to attend private schools. Starting July 1, 2026, contributions to STOs will no longer qualify for this tax credit, and STOs will be prohibited from issuing tax credit certificates for contributions made after that date. To account for the mid-year repeal, the total amount of STO tax credits that can be issued in calendar year 2026 is reduced from $20 million to $10 million. The bill also sets a final repeal date for the STO tax credit section of the law to July 1, 2032, to address any potential carryforward of existing tax credits. Additionally, other sections of the law that reference the STO tax credit will be removed on the same date the credit itself is fully repealed.

Committee Categories

Education

Sponsors (18)

Last Action

Introduced, referred to Education. H.J. 150. (on 01/26/2026)

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