Does reading on the iPad or Kindle count toward my kids' daily reading minutes, or would it be considered screen time?

So long as they're really reading, then it's legit. The best way to ensure that real reading is happening, stick to real books or basic ereaders with paper-like screens that don't download apps. According to a 2012 study conducted by the Joan Ganz Cooney Center, print and basic ebooks are better for "literacy-building experiences" than feature-rich, multimedia ebooks. If you want to make sure your kids are comprehending what they're reading, read with them or ask them to read to you.

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Kid, 12 years old

Yes. If she is reading on it, it counts. It would also count if they read magazines, newspaper articles or real books.
Adult written by D-Rae

I think reading anything should count toward kids' daily reading minutes. A Kindle or e-book is just easier to carry around for them. In fact, my 12-year-old just went on a vacation and we downloaded five e-books onto her Kindle so that she would not have to carry so many on the airplane . Even reading a newspaper should be counted, though they can't take an AR test on newspaper articles.
Kid, 12 years old

Yes. The only difference between an e-reader and a book is that an e-reader is smaller, more compact, and can contain more data. But only if it's a REAL e-book. Not any of this "interactive e-picturebook" stuff that has been going around.