The Iowa School Tuition Organization Tax Credit program, a tax-credit scholarship program, was enacted and launched in 2006. It helps Iowa students from low- and lower middle-income households to afford the schooling options that best fit their needs. Learn more about the program’s details on this page, including eligibility, funding, regulations, and more.
Iowa offers tax credits to donors supporting School Tuition Organizations (STOs), nonprofits that provide private school scholarships to students in need.
Scholarship amounts are determined by STOs.
The credit is worth 65 percent of the donation’s value, which also is limited by a statewide cap of $12 million. 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.
Children are eligible to receive scholarships if their family income does not exceed 300 percent of federal poverty guidelines ($72,750 for a family of four in 2015–16).
Iowa Stat. § 422.11S
No legal challenges have been filed against the program.