Education funding in Iowa
4 programs in Iowa, 1 open to homeschoolers. Each links to the program’s official sources.
Tuition and Textbook Credit (K-12)
Homeschoolers can qualify From official sources October 7, 2026
Yes. Parents of children receiving private instruction (homeschooling) can claim 25% of the first $2,000 per child paid for tuition, textbooks and other instructional materials, so up to $500 per child. Purchases made with Students First ESA funds do not count. Qualifying expenses paid with 529 account distributions may qualify.
Dates and status: Claimed on the Iowa individual income tax return (2025 instructions are current). Keep records showing each child, the private instruction qualifications, and an itemized list of expenses.
Federal Tax Credit Scholarship (Iowa opt-in)
Program doesn’t say whether homeschoolers qualify From official sources October 7, 2026 Not open yet
Official federal guidance says scholarships cover expenses "incurred in connection with or required by a K-12 public, private (including religious), or charter school," with "school" defined under state law, and does not mention homeschooling. Treasury and the IRS say separate guidance on which expenses qualify is still being written, so whether a homeschooled child can use a scholarship is not settled.
Dates and status: Iowa has made an advance election to participate for 2027 and appears on the IRS list (as of September 14, 2026). Donations can qualify starting January 1, 2027; families will apply to scholarship organizations on Iowa's list.
School Tuition Organization (STO) Tax Credit tuition grants
Not open to homeschoolers From official sources October 7, 2026
No. STO tuition grants are for students who enroll in accredited nonpublic schools in Iowa, so homeschooled children cannot use them.
Dates and status: Families can get information about STOs from their accredited nonpublic school. Family income must be no more than 400% of the federal poverty guidelines. The Department of Education lists the authorized STO tax credit total as $20,000,000 for tax years beginning on or after January 1, 2022.
Students First Education Savings Accounts
Not open to homeschoolers From official sources October 7, 2026
No. The ESA is only for students attending an Iowa accredited nonpublic school. A child who was homeschooled can apply only if they enroll full time at an accredited nonpublic school.
Dates and status: For 2026-27 the award is $8,148, open to all Iowa resident K-12 students regardless of income. Applications ran April 16 to June 30, 2026 and are closed; 2027-28 dates are not yet posted. Spring tuition and fees must be paid through the ESA portal by February 1, 2027.