Iowa is taking an important step forward by establishing a Scholarship Granting Organization designed specifically to serve Iowa school communities through the new federal Scholarship Tax Credit program.
Unlike national organizations that are already seeking SGO business in Iowa, this effort is rooted here at home. Rather than directing administrative fees out of state, the goal is to keep resources focused on Iowa schools, Iowa families, and Iowa students. For more than 20 years, Iowa’s School Tuition Organizations have served families across the state, and that same Iowa-centered commitment will continue through this new effort.
The new federal tax credit scholarship program, approved last July as part of the One Big Beautiful Bill, allows donors to receive a 100% federal tax credit of up to $1,700 for contributions made to a qualified Scholarship Granting Organization. Those organizations will then use the funds to provide scholarships for students attending nonpublic schools. Governor Reynolds has already opted Iowa into the program, which is scheduled to launch on January 1, 2027.
Similar to Iowa’s long-standing STO model, donations and scholarships under the federal program will be administered through Scholarship Granting Organizations. Iowa STOs are working together to create the Iowa Scholarship Granting Organization, or ISGO, now incorporated, and will partner with existing STOs to assist donors, families, applicants, private schools, and charter schools across the state.
If you have any questions please reach out to Trish Wilger at twilger@iowaace.org or Josh Bowar at josh@iowachristianschools.org.