Read the full stored bill text
House
File
2078
-
Introduced
HOUSE
FILE
2078
BY
FETT
A
BILL
FOR
An
Act
relating
to
resident
dependents
not
enrolled
in
a
1
public
school
or
receiving
an
educational
savings
account
2
payment
by
creating
an
opportunity
tax
credit
available
3
against
the
individual
income
tax,
creating
a
fund,
making
4
appropriations,
and
including
effective
date
and
retroactive
5
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
TLSB
5532YH
(7)
91
jm/jh
H.F.
2078
Section
1.
SHORT
TITLE.
This
Act
shall
be
known
as
the
1
“Opportunity
Tax
Credit
Act”.
2
Sec.
2.
NEW
SECTION
.
422.12R
Opportunity
tax
credit.
3
1.
As
used
in
this
section,
“dependent”
has
the
same
meaning
4
as
provided
by
the
Internal
Revenue
Code.
5
2.
a.
The
taxes
imposed
under
this
subchapter,
less
the
6
credits
allowed
under
section
422.12,
shall
be
reduced
by
an
7
opportunity
tax
credit
equal
to
four
thousand
dollars
for
8
each
resident
dependent
of
the
taxpayer
eligible
to
enroll
in
9
a
school
district
in
this
state
and
who
is
not
enrolled
in
10
a
school
district
or
receiving
an
education
savings
account
11
payment
pursuant
to
section
257.11B,
if
any
of
the
following
12
apply
to
the
resident
dependent
in
the
tax
year
the
credit
is
13
claimed:
14
(1)
Eligibility
to
attend
kindergarten
in
a
public
school
15
in
this
state.
16
(2)
Attendance
at
a
public
school
in
this
state
for
at
least
17
one
semester
in
the
immediately
preceding
academic
year.
18
(3)
Receipt
of
an
educational
savings
account
payment
19
pursuant
to
section
257.11B
for
the
immediately
preceding
20
academic
year
by
the
parent
or
guardian.
21
(4)
Receipt
of
the
credit
by
the
parent
or
guardian
in
22
the
previous
tax
year
and
resident
dependent
remains
eligible
23
to
enroll
in
a
school
district
in
this
state
but
who
is
not
24
enrolled
in
a
school
district
in
the
tax
year
the
credit
25
is
claimed
and
the
parent
or
guardian
is
not
receiving
an
26
education
savings
account
payment
pursuant
to
section
257.11B
27
in
the
tax
year
the
credit
is
claimed.
28
b.
A
taxpayer
is
ineligible
to
claim
the
credit
for
the
tax
29
year
if
the
taxpayer
received
an
educational
savings
account
30
payment
pursuant
to
section
257.11B
that
covers
the
same
31
academic
year
as
the
tax
credit
award.
32
3.
a.
Any
credit
in
excess
of
tax
liability
is
refundable.
33
b.
In
lieu
of
claiming
the
credit
on
a
return
the
taxpayer
34
may
make
application
to
the
department
to
have
the
credit
35
-1-
LSB
5532YH
(7)
91
jm/jh
1/
4
H.F.
2078
payable
to
the
taxpayer
in
advance
prior
to
the
close
of
the
1
tax
year
in
the
same
form
and
manner
as
payments
made
under
2
section
257.11B.
An
opportunity
fund
is
created
in
the
state
3
treasury
under
the
control
of
the
department
consisting
of
4
moneys
appropriated
to
the
department
for
the
purpose
of
5
providing
advanced
payments
made
under
this
paragraph.
For
the
6
fiscal
year
commencing
July
1,
2026,
and
each
succeeding
fiscal
7
year,
there
is
appropriated
from
the
general
fund
of
the
state
8
to
the
opportunity
fund
an
amount
necessary
to
pay
all
advanced
9
payments
approved
for
that
fiscal
year.
10
4.
By
making
a
claim
for
the
credit
pursuant
to
this
11
section,
whether
by
return
or
application,
the
taxpayer
shall
12
be
considered
to
have
granted
the
department
permission
to
13
review
any
enrollment
status
or
educational
account
payments
14
with
the
department
of
education
to
determine
eligibility
for
15
the
credit.
16
5.
Beginning
January
15,
2028,
and
each
January
15
17
thereafter,
the
department
shall
prepare
and
file
a
report
with
18
the
general
assembly
on
the
credit,
detailing
the
number
of
19
claims
including
any
known
fraudulent
claims,
and
any
other
20
relevant
information
the
department
deems
necessary.
21
6.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
22
to
administer
this
section.
23
Sec.
3.
EFFECTIVE
DATE.
This
Act,
being
deemed
or
immediate
24
importance,
takes
effect
upon
enactment.
25
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
26
retroactively
to
January
1,
2026,
for
tax
years
beginning
on
27
or
after
that
date.
28
EXPLANATION
29
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
30
the
explanation’s
substance
by
the
members
of
the
general
assembly.
31
This
bill
relates
to
resident
dependents
not
enrolled
in
32
a
public
school
or
receiving
an
educational
savings
account
33
payment
by
creating
an
opportunity
tax
credit
available
34
against
the
individual
income
tax,
creating
a
fund,
and
making
35
-2-
LSB
5532YH
(7)
91
jm/jh
2/
4
H.F.
2078
appropriations.
The
bill
shall
be
known
as
the
“Opportunity
1
Tax
Credit
Act”.
2
The
tax
credit
is
equal
to
$4,000
for
each
resident
dependent
3
of
a
taxpayer
(parent
or
guardian)
who
is
eligible
to
enroll
4
in
a
school
district
in
this
state
and
who
is
not
enrolled
5
in
a
school
district
or
the
taxpayer
is
not
receiving
an
ESA
6
payment,
and
any
of
the
following
apply
to
the
dependent:
(1)
7
eligibility
to
attend
kindergarten;
(2)
attendance
at
a
public
8
school
in
this
state
for
at
least
one
semester
in
the
previous
9
academic
year;
(3)
receipt
of
an
ESA
payment
by
the
taxpayer
10
in
the
previous
academic
year;
or
(4)
receipt
of
the
credit
11
in
the
previous
tax
year
by
the
taxpayer
and
the
dependent
12
remains
eligible
to
be
enrolled
in
a
school
district
but
is
not
13
enrolled
in
the
tax
year
the
credit
is
claimed
and
the
taxpayer
14
is
not
receiving
an
ESA
payment
in
the
tax
year.
15
A
taxpayer
is
ineligible
to
claim
the
credit
if
the
taxpayer
16
received
an
ESA
payment
that
covers
the
same
academic
year
as
17
the
opportunity
tax
credit
awarded
under
the
bill.
18
Any
credit
in
excess
of
tax
liability
is
refundable
under
the
19
bill.
In
lieu
of
claiming
the
credit
on
a
return,
the
taxpayer
20
may
make
application
to
the
department
of
revenue
(department)
21
to
have
the
credit
payable
to
the
taxpayer
in
advance
prior
to
22
the
close
of
the
tax
year
in
the
same
form
and
manner
as
ESA
23
payments.
24
The
bill
creates
an
opportunity
fund
in
the
state
treasury
25
under
the
control
of
the
department
for
the
purpose
of
26
providing
advanced
payments.
For
the
fiscal
year
commencing
27
July
1,
2026,
and
each
succeeding
fiscal
year,
there
is
28
appropriated
from
the
general
fund
of
the
state
to
the
29
opportunity
fund
an
amount
necessary
to
pay
all
advanced
30
payments
approved
for
that
fiscal
year.
31
By
making
a
claim
for
the
credit,
the
taxpayer
shall
be
32
considered
to
have
granted
the
department
permission
to
review
33
the
enrollment
status
or
ESA
payments
with
the
department
of
34
education
to
determine
eligibility
for
the
credit.
35
-3-
LSB
5532YH
(7)
91
jm/jh
3/
4
H.F.
2078
Beginning
January
15,
2028,
and
each
January
15
thereafter,
1
the
department
shall
prepare
and
file
a
report
with
the
2
general
assembly
on
the
credit,
detailing
the
number
of
claims
3
including
any
known
fraudulent
claims
and
any
other
relevant
4
information
the
department
deems
necessary.
5
The
bill
requires
the
department
to
adopt
rules
to
6
administer
the
credit.
7
The
bill
takes
effect
upon
enactment
and
applies
8
retroactively
to
tax
years
beginning
on
or
after
January
1,
9
2026.
10
-4-
LSB
5532YH
(7)
91
jm/jh
4/
4