Iowa Scholarship Granting Organizations

Iowa's School Tuition Organization Tax Credit program

Iowa's School Tuition Organization (STO) Tax Credit program was established in 2006 under the Educational Opportunities Act and is administered by the Iowa Department of Revenue. Approved School Tuition Organizations (STOs) pool donations from individuals and businesses, then award tuition grants to income-eligible students attending accredited nonpublic K-12 schools in Iowa.

Iowa also launched a separate Education Savings Account (ESA) program in 2023 under the Students First Act. The ESA and STO programs operate in parallel — families may receive both an STO tuition grant and ESA funds.

Am I eligible?

Your child may qualify if:

• Family income at or below 400% of the Federal Poverty Level (FPL) — approximately $132,000 for a family of four (2026 guidelines). Income is measured from the calendar year before the student receives the tuition grant.
• Iowa residency — your child must be an Iowa resident
• Enrolled in an accredited nonpublic school — the school must be an accredited nonpublic elementary or secondary school in Iowa

There are no special eligibility categories for students with IEPs or 504 plans, foster care, military families, or based on prior school performance. The sole statutory student eligibility criterion is the 400% FPL income threshold.

How much can my child receive?

No statutory per-student maximum — each STO determines award amounts based on family financial need and available funding.

• Covers tuition only — there is no provision for textbooks, tutoring, therapies, transportation, or other expenses
• Awards cover all or part of tuition at the student's accredited nonpublic school
• Most awards are partial — families typically reapply annually

The statewide average tuition grant was $1,763 in 2021-22, covering approximately 38% of average tuition ($4,596) at participating schools.

How to apply

Each STO manages its own application process — there is no centralized state application. Iowa has 12 active STOs, and each accredited nonpublic school is affiliated with one STO.

1. Contact your child's school — the school will direct you to the STO that serves it
2. Complete the STO's financial aid application — some use online assessment systems while others use paper applications
3. Provide income documentation — typically pages 1 and 2 of your prior-year federal income tax return (IRS Form 1040) to verify income eligibility
4. STO reviews and awards — the STO determines grant amounts based on need and available funding
5. Grants applied to tuition — awards are sent directly to the student's school

Browse the STOs listed on this page to find one serving your area.

How the tax credit works

Iowa offers a 75% nonrefundable state income tax credit for voluntary cash or noncash contributions to approved STOs. The Iowa Department of Revenue states the credit in its School Tuition Organization Tax Credit instructions.

• Individuals: Credit equal to 75% of your donation — no per-donor cap (limited only by your Iowa tax liability and the STO's remaining allotment)
• Corporations: Same 75% credit — corporations share the $20 million statewide pool with no separate corporate cap
• Pass-through entities: S-corporations, partnerships, LLCs, estates, and trusts eligible since 2013 — credit flows based on each individual's pro rata share of earnings
• Carry forward: Unused credits roll forward up to 5 years (less than 1% of awarded credits have historically expired unused)
• No minimum donation required

The statewide credit cap is $20 million in total tax credits per calendar year (effective 2022 and onward).

How to donate

Iowa does not use a state-level donor reservation or pre-approval system. Tax credits are issued by each STO on a first-come, first-served basis until that STO's annual allotment is exhausted.

1. Choose an STO from the list on this page
2. Make your donation — contribute directly to your chosen STO (cash or noncash contributions accepted)
3. Receive a tax credit certificate from the STO
4. Claim the credit on your Iowa state income tax return by attaching the IA 148 Tax Credit Schedule

Important: You cannot designate a contribution for the direct benefit of any dependent of yours or any other specific student. You may restrict your gift to one or more specific schools served by the STO, though the STO may reallocate unused restricted funds to other schools it serves.

Program impact

Iowa's program has grown steadily since its 2006 inception, with the statewide cap increasing from $2.5 million to $20 million.

Twelve active STOs serve approximately 139 participating schools statewide. Since inception, the program has awarded over $152 million in cumulative tax credits supporting $232 million in contributions.