Enacted 2006 • Launched 2006 • Tax-Credit Scholarship
Iowa provides a credit on individual income taxes for donations to School Tuition Organizations (STOs),
nonprofits that provide private school scholarships. The credit is worth 65 percent of the donation’s
value, which also is limited by a statewide cap. A maximum of $12 million in tax credits is available.
Each STO is able to grant tax credits to its donors up to its share of the statewide limit, with each STO’s
share determined by the enrollment at the schools it serves. Corporate donations are able to constitute
up to 25 percent of the $12 million cap.
Latest Stats (2012-13)
- Students participating: 10,446
- Schools participating: 153
- Scholarship organizations: 12
- Average scholarship value: $1,086
Scholarship amounts are determined by STOs.
Children are eligible to receive scholarships if their family income does not exceed 300 percent of
federal poverty guidelines ($70,650 for a family of four in 2013-14).
No legal challenges have been filed against the program.
Rules & Regulations
• Income Limit: 300 percent x poverty
• Prior Year Public School Requirement: None
• Geographic Limit: Statewide
• Enrollment Cap: None
• Scholarship Cap: Full tuition
• Testing Mandates: None
• Credit Value: 65 percent
• Total Credit Cap: None
• Budget Cap: $8.75 million
Iowa Stat. §§ 422.11S
Michael Chartier | firstname.lastname@example.org