IA
Iowa Senate Bill SSB1119

Iowa 2025-2026 Regular Session

Iowa Senate Bill SSB1119

Introduced
2/13/25  

Caption

A bill for an act creating a deduction available against the individual income tax for educational expenses at institutions of higher education for career-related programs and apprenticeship programs, and including retroactive applicability provisions.(See SF 379.)

Impact

The legislation impacts Iowa's tax code, specifically modifying Section 422.7 to introduce new provisions regarding deductions for educational expenses. This change may incentivize residents to engage in career-related educational activities, potentially leading to a more skilled workforce in critical industries. With retroactive applicability starting from January 1, 2025, taxpayers will be able to deduct eligible expenses for the current tax year and beyond, which may influence individual financial planning and educational choices.

Summary

Senate Study Bill 1119 aims to provide a deduction against individual income tax for educational expenses related to institutions of higher education and registered apprenticeship programs. This bill is designed to support individuals pursuing career-related education that may not lead to college credits, thereby expanding access to various educational pathways that enhance workforce skills. By enabling taxpayers to deduct these expenses, the bill seeks to address the financial barriers associated with career training and education.

Contention

While the bill presents potential benefits for taxpayers, it may also raise concerns among local education institutions. The definition of what constitutes an eligible institution and allowable expenses is crucial, and there could be debates over how strictly these criteria are enforced. Additionally, the focus on career-related programs that do not qualify for college credits might lead to discussions about the value and recognition of such programs in the educational landscape, particularly in relation to traditional higher education pathways.

Companion Bills

IA SF379

Replaced by A bill for an act creating a deduction available against the individual income tax for educational expenses at institutions of higher education for career-related programs and apprenticeship programs, and including retroactive applicability provisions.(Formerly SSB 1119.)

Previously Filed As

IA SSB3128

A bill for an act relating to the Iowa educational savings plan trust by expanding the definition of qualified educational expenses and apprenticeship programs for purposes of withdrawals qualifying for an individual income tax exclusion, and including retroactive applicability provisions.(See SF 2259, SF 2440.)

IA SF2259

A bill for an act relating to the Iowa educational savings plan trust by expanding the definition of qualified educational expenses and apprenticeship programs for purposes of withdrawals qualifying for an individual income tax exclusion, and including retroactive applicability provisions.(Formerly SSB 3128; See SF 2440.)

IA SF2440

A bill for an act relating to the Iowa educational savings plan trust by expanding the plan trust to include career-related programs approved by the Iowa office of apprenticeship for purposes of withdrawals qualifying for an individual income tax deduction, and including retroactive applicability provisions.(Formerly SF 2259, SSB 3128.)

IA SSB1208

A bill for an act relating to certain education programs and tax credits and including effective date, applicability, and retroactive applicability provisions.(See SF 572.)

IA HF284

A bill for an act relating to the Iowa educational savings plan trust by excluding from the computation of net income for the individual income tax withdrawals for the payment of qualified education expenses for private instruction, and including retroactive applicability provisions.

IA SF2257

A bill for an act creating a child tax credit available against the individual income tax, and including retroactive applicability provisions.

IA HSB63

A bill for an act creating the new resident and new graduate tax credits, available against the individual income tax, and including retroactive applicability provisions.

IA SF572

A bill for an act relating to certain education programs and tax credits and including effective date, applicability, and retroactive applicability provisions.(Formerly SSB 1208.)

IA HF292

A bill for an act creating a private instruction organization tax credit available against the individual and corporate income taxes, and including effective date and retroactive applicability provisions.

IA SF459

A bill for an act increasing the earned income tax credit available against the Iowa individual income tax, and including retroactive applicability provisions.

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CA AB3167

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