Senate Study Bill 1119 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WORKFORCE BILL BY CHAIRPERSON DICKEY) A BILL FOR An Act creating a deduction available against the individual 1 income tax for educational expenses at institutions 2 of higher education for career-related programs and 3 apprenticeship programs, and including retroactive 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 6 TLSB 1644XC (4) 91 jm/jh
S.F. _____ Section 1. Section 422.7, Code 2025, is amended by adding 1 the following new subsection: 2 NEW SUBSECTION . 45. a. Subtract, to the extent included, 3 the payment of expenses for the following: 4 (1) For instruction at an institution of higher education 5 for career-related programs that do not qualify for college 6 credit. 7 (2) For participation in an apprenticeship program. 8 b. Payments made from the Iowa education savings plan 9 established in chapter 12D or from a similar plan do not 10 qualify for the deduction under this subsection. 11 c. The department shall adopt rules pursuant to chapter 17A 12 to implement this subsection. 13 d. As used in this subsection: 14 (1) Apprenticeship program means a program registered with 15 the Iowa office of apprenticeship under chapter 84D. 16 (2) Expenses means tuition, fees, books, supplies, and 17 equipment. 18 (3) Institution of higher education means any of the 19 following: 20 (a) A community college established under chapter 260C. 21 (b) An institution governed by the state board of regents. 22 (c) An accredited private institution as defined in section 23 256.183, subsection 1. 24 (4) Payment includes loan repayments for expenses paid 25 for instruction at an institution of higher education and for 26 payments of expenses for instruction at an institution of 27 higher education and for the participation in an apprenticeship 28 program. 29 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 30 retroactively to January 1, 2025, for tax years beginning on 31 or after that date. 32 EXPLANATION 33 The inclusion of this explanation does not constitute agreement with 34 the explanations substance by the members of the general assembly. 35 -1- LSB 1644XC (4) 91 jm/jh 1/ 2
S.F. _____ This bill creates a deduction available against the 1 individual income tax for educational expenses at institutions 2 of higher education and apprenticeship programs. 3 The bill allows an individual income taxpayer to deduct the 4 expenses for instruction at an institution of higher education 5 for career-related programs that do not qualify for college 6 credit, and for participation in an apprenticeship program 7 registered with the Iowa office of apprenticeship under Code 8 chapter 84D. 9 The bill defines institution of higher education, 10 expenses, and payment. 11 The bill applies retroactively to tax years beginning on or 12 after January 1, 2025. 13 -2- LSB 1644XC (4) 91 jm/jh 2/ 2