The federal scholarship credit in Iowa
What it means for families in Iowa
K-12 students who live in Iowa can get a federal scholarship toward tuition and fees once the program starts. Household income has to be at or below 300% of your area's median, and foster children qualify automatically.
Scholarships are paid to a partner school, so the first step is finding out whether your child's school takes part. If it doesn't yet, recommend it and we'll reach out.
What it means for donors in Iowa
Any US taxpayer can donate and claim up to $1,700 against federal income tax, dollar for dollar, starting January 1, 2027. When you donate to CEN SGO, you choose the partner school your donation supports.
Iowa also has its own scholarship tax credit. Donors cannot claim a federal and state tax credit on the same funds, so your $1,700 federal credit contribution needs to be claimed separately from any claimed state credit contribution.
For schools in Iowa
Families only get scholarships through a partner school, so schools come first. Registering with CEN SGO costs nothing. It's one agreement, and CEN handles donor receipts, income checks, awards, payments and reporting.
Schools that register before donations open on January 1, 2027 can run a pledge campaign with their parents first.
Iowa at a glance
Iowa has opted in to the federal Education Freedom Tax Credit, so families here can get scholarships when the program starts on January 1, 2027.
- January 5, 2026
- Opted in · Governor's election
- Kim Reynolds
- Governor
- January 1, 2027
- The federal credit goes live
- $1,700
- The most a donor can claim each year
- School Tuition Organization credit
- State scholarship credit
Key dates
Every date in one placeJanuary 5, 2026
Iowa opted in (Governor's election)
Fall 2026
States open certification for scholarship granting organizations
Next
January 1, 2027
The first day a donation earns the federal credit
December 31, 2027
The last day to donate for the 2027 return
Early 2028
The IRS form comes out and 2027 returns are filed
Questions
Questions about Iowa
Short answers for families and donors in Iowa. Every other question is on the FAQ page.
Does Iowa take part in the federal credit?
Yes. Opted in January 5, 2026 (Governor's election). Families here can get scholarships when the program starts on January 1, 2027.
Who decided for Iowa?
Governor Kim Reynolds opted Iowa in. Each year the governor sends Treasury the list of qualifying scholarship granting organizations.
Can people in Iowa donate and claim the credit?
Yes. Any US taxpayer can claim up to $1,700 against federal income tax for a donation to a qualifying scholarship granting organization, starting January 1, 2027.
When does it start?
January 1, 2027. Donations made on or after that date count toward the credit.
Can I claim a state credit too?
Yes, with two separate donations. Donors cannot claim a federal and state tax credit on the same funds, so your $1,700 federal credit contribution needs to be claimed separately from any claimed state credit contribution.
Keep reading
Guides for families and donors
Other states that have opted in
Families in every opted-in state can get scholarships when the program starts. Each state has its own page.
Is your child's school in Iowa?
Recommend it and we'll reach out to the school about taking part. It takes a minute.