The Iowa House passed HF 625 yesterday on a 96-2 vote with two members being absent. This bill increases the School Tuition Organization (STO) credit cap from $8.75 million to $12 million. The bill also adds Sub S corporations and LLCs to the list of qualified donors.
School Tuition Organizations are charitable organizations that raise tuition grant funding for students who enroll in accredited non-public schools. In order for a student to be eligible the student’s family’s income can be no more than 300% of the federal poverty guidelines. Enacted in 2006 Iowa taxpayers who choose to donate to STOs are eligible for a tax credit which is equal to 65% of their total contribution. Each School Tuition Organization is able to grant tax credits to its donors up to its share of the statewide limit, with each STO’s share determined by the enrollment at the schools it serves.
The bill was floor-managed by State Representative Chris Hagenow (R-Windsor Heights). The two no votes were State Representatives Mary Mascher (D-Iowa City) and Beth Wessel-Kroeschell (D-Ames).
Photo Credit: Jimmy Emerson via Flickr (CC-By-NC-ND 2.0)
