The Friedman Foundation for Educational Choice

Advancing Milton and Rose D. Friedman's Vision of School Choice for All Children

Iowa - School Tuition Organization Tax Credit

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

Program Details

Student Funding
Scholarship amounts are determined by STOs.

Student Eligibility
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).

Legal Developments
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

Governing Statutes
Iowa Stat. §§ 422.11S

Friedman Contact
Michael Chartier |

Related Research

10/30/2014 The School Starter Checklist: Meeting the Private Education Regulations in States with School Choice
5/30/2014 Public Rules on Private Schools: Measuring the Regulatory Impact of State Statutes and School Choice Programs
10/8/2013 Iowa K-12 and School Choice Survey
2/5/2008 Grading School Choice: Evaluating School Choice Programs by the Friedman Gold Standard

Related News

3/12/2014 National Review Online | Choosing to Learn
1/23/2014 U.S. voucher, school choice enrollment reaches record high
10/26/2013 Des Moines Register | Another View: School choice is education reform that will help kids
10/9/2013 Radio Iowa | Iowa’s private, parochial schools push for “educational savings accounts”
10/8/2013 Iowa voters support public schools, favor expanding school choice
10/8/2013 Sioux City Journal | Poll: Iowans support school vouchers
8/15/2013 Sharing your story in “The ABCs” can be as easy as one, two, three
8/6/2013 Stateline | Tax Dollars for Private School Tuition Gain in States
1/23/2013 “The ABCs of School Choice,” 2013 Edition, Now Available
4/7/2011 Reed | Follow other states’ lead, support school choice in Oregon
3/7/2011 Register-Guard | Bills aim to add education options

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