Iowa lawmakers approved a measure May 2 that would establish a tax credit for individuals who make donations to groups that provide scholarships to help low-income students pay tuition at private religious or secular schools.
Gov. Tom Vilsack, a Democrat who vetoed a similar proposal in 2004, is expected to approve the program, said Troy M. Price, a spokesman for the office of the governor.
Under the legislation, individuals would receive a tax credit for donating to nonprofit scholarship organizations that would be set up to distribute the money to a group of schools. The state could not give out more than $2.5 million in tax credits for fiscal year 2007.
The schools would then award scholarships to low-income students. The grants would be distributed based on need and could not exceed the school’s tuition.
