HF 2078: 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

What it does

This bill relates 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, and making appropriations. The bill shall be known as the “Opportunity Tax Credit Act”. The tax credit is equal to $4,000 for each resident dependent of a taxpayer (parent or guardian) who is eligible to enroll in a school district in this state and who is not enrolled in a school district or the taxpayer is not receiving an ESA payment, and any of the following apply to the dependent: (1) eligibility to attend kindergarten; (2) attendance at a public school in this state for at least one semester in the previous academic year; (3) receipt of an ESA payment by the taxpayer in the previous academic year; or (4) receipt of the credit in the previous tax year by the taxpayer and the dependent remains eligible to be enrolled in a school district but is not enrolled in the tax year the credit is claimed and the taxpayer is not receiving an ESA payment in the tax year.

House subcommittee · named February 12, 2026

• Rep. Samantha Fett (R) · samantha.fett@legis.iowa.gov
• Rep. Dan Gehlbach (R) · dan.gehlbach@legis.iowa.gov
• Rep. Heather Matson (D) · heather.matson@legis.iowa.gov

Lobbying · 12 for, 10 against

For: Americans For Prosperity; Excellence in Education National, Inc., d/b/a Excellence in Education in Action; Homeschool Iowa; Inspired Life; Iowa Baptists For Biblical Values; Iowa Catholic Conference; Iowa Coalition for Public Charter Schools; Iowa Faith and Freedom Coalition; National Alliance for Public Charter Schools; The Family Leader; The Family Leader Foundation; Yes. Every Kid.

Against: Home School Legal Defense Association; Homeschool Iowa; Interfaith Alliance of Iowa Action Fund; Iowa Association of School Boards; Iowa Integrated Health Planning and Advisory Council; Iowa State Education Association; Quadrivium Services; Rural School Advocates of Iowa; School Administrators of Iowa; Urban Education Network of Iowa

In plain words

1. January 15, 2026Filed in the House and sent to the Education committee
2. February 12, 2026House subcommittee named: Fett, Gehlbach and Matson
3. February 18, 2026Subcommittee recommended passing it