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IA HF2078
Bill
Status
1/15/2026
Primary Sponsor
Samantha Fett
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AI Summary
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Creates a $4,000 refundable "Opportunity Tax Credit" per dependent for Iowa taxpayers whose children are eligible for public school but not enrolled in a public school district and not receiving educational savings account (ESA) payments.
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Eligibility requires the dependent to meet one of four conditions: eligible for kindergarten, attended public school for at least one semester in the prior year, received ESA payment in the prior year, or the parent received the credit in the previous tax year.
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Taxpayers cannot claim both the tax credit and an ESA payment for the same dependent in the same academic year.
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Establishes an "Opportunity Fund" in the state treasury with appropriations from the general fund beginning July 1, 2026, to allow advance payments of the credit prior to the close of the tax year.
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Requires annual reporting to the general assembly beginning January 15, 2028, detailing the number of claims, any fraudulent claims, and other relevant information; applies retroactively to tax years beginning January 1, 2026.
Legislative Description
A bill for an act relating to resident dependents not enrolled in a public school or receiving an educational savings account payment by creating an opportunity tax credit available against the individual income tax, creating a fund, making appropriations, and including effective date and retroactive applicability provisions.
Last Action
Subcommittee recommends passage.
2/18/2026