Tax-Credit Scholarship

Iowa School Tuition Organization Tax Credit

  • Enacted:
    2006
  • Launched:
    2006
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Program Stats

  • 66%

    Students Eligible

  • 2%

    Funded Eligibility

  • 17,184

    Participating Students (2024)

  • $1,450

    Average Account Value (school year)

  • 10%

    Public School Funding

  • 12 SGOs

    Providers or Schools

Program Summary

This program offers 75% tax credits to individuals and corporations that donate to SGOs. An individual may claim the tax credit allowed to a partnership, limited liability company, S-corporation, estate, or trust, electing to have the income taxed directly to the individual. The amount claimed by the individual shall be based upon the individual’s pro rata share of the income received by the partnership, limited liability company, S-corporation, estate, or trust. The credit is not refundable, but excess tax liability may be carried forward for the following five tax years, or until it is depleted. Eligibility is limited to students from families at or below 400% of the FPL. A student’s scholarship may not exceed the private school’s tuition and fees. The annual budget cap for this program is $20 million. 

Funding Mechanism: Private donors fund this program by donating to STOs. They receive tax credits for their donation, up to certain limits.  

Universal Eligibility: ❌
Universal Usage: ❌
Universal Funding: ❌
Truly Universal: ❌

(Last updated December 16, 2025)

 

Use of Funds

Funds may be used for tuition and fees at nonpublic schools.  

(Last updated December 16, 2025)

Program Guidelines

View program requirements for parents, schools, and scholarship granting organizations by clicking on each hyperlink.

(Last updated December 16, 2025)

Governing Statutes

Iowa Stat. §422.11S

(Last updated July 15, 2024)