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House
File
2152
-
Introduced
HOUSE
FILE
2152
BY
MATSON
,
RAMIREZ
,
EHLERT
,
MADISON
,
KURTH
,
LEVIN
,
WICHTENDAHL
,
AMOS
JR.
,
WILSON
,
B.
MEYER
,
KONFRST
,
KRESSIG
,
WILBURN
,
McBURNEY
,
SCHOLTEN
,
R.
JOHNSON
,
WESSEL-KROESCHELL
,
and
BAGNIEWSKI
A
BILL
FOR
An
Act
repealing
the
school
tuition
organization
tax
credit
1
available
against
the
individual
and
corporate
income
taxes
2
and
including
effective
date
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5697YH
(4)
91
jm/jh
H.F.
2152
DIVISION
I
1
SCHOOL
TUITION
ORGANIZATION
TAX
CREDITS
——
REPEAL
2
Section
1.
Section
422.11S,
subsection
1,
Code
2026,
is
3
amended
to
read
as
follows:
4
1.
The
taxes
imposed
under
this
subchapter
,
less
the
credits
5
allowed
under
section
422.12
,
shall
be
reduced
by
a
school
6
tuition
organization
tax
credit
equal
to
seventy-five
percent
7
of
the
amount
of
the
voluntary
cash
or
noncash
contributions
8
made
by
the
taxpayer
during
the
tax
year
to
a
school
tuition
9
organization
before
July
1,
2026
,
subject
to
the
total
dollar
10
value
of
the
organization’s
tax
credit
certificates
as
computed
11
in
subsection
8
.
The
tax
credit
shall
be
claimed
by
use
of
a
12
tax
credit
certificate
as
provided
in
subsection
7
.
13
Sec.
2.
Section
422.11S,
subsection
7,
paragraph
b,
Code
14
2026,
is
amended
to
read
as
follows:
15
b.
The
department
shall
authorize
a
school
tuition
16
organization
to
issue
tax
credit
certificates
for
contributions
17
made
to
the
school
tuition
organization
before
July
1,
18
2026
.
The
aggregate
amount
of
tax
credit
certificates
19
that
the
department
shall
authorize
for
a
school
tuition
20
organization
for
a
calendar
year
shall
be
determined
for
that
21
organization
pursuant
to
subsection
8
.
However,
a
school
22
tuition
organization
shall
not
be
authorized
to
issue
tax
23
credit
certificates
unless
the
organization
is
controlled
by
a
24
board
of
directors
consisting
of
at
least
seven
members.
The
25
names
and
addresses
of
the
members
shall
be
provided
to
the
26
department
and
shall
be
made
available
by
the
department
to
the
27
public,
notwithstanding
any
state
confidentiality
restrictions.
28
Sec.
3.
Section
422.11S,
subsection
8,
paragraph
a,
29
subparagraph
(2),
Code
2026,
is
amended
to
read
as
follows:
30
(2)
“Total
approved
tax
credits”
means
for
the
2006
calendar
31
year,
two
million
five
hundred
thousand
dollars,
for
the
32
2007
calendar
year,
five
million
dollars,
for
calendar
years
33
beginning
on
or
after
January
1,
2008,
but
before
January
1,
34
2012,
seven
million
five
hundred
thousand
dollars,
for
calendar
35
-1-
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2152
years
beginning
on
or
after
January
1,
2012,
but
before
January
1
1,
2014,
eight
million
seven
hundred
fifty
thousand
dollars,
2
for
calendar
years
beginning
on
or
after
January
1,
2014,
but
3
before
January
1,
2019,
twelve
million
dollars,
for
calendar
4
years
beginning
on
or
after
January
1,
2019,
but
before
January
5
1,
2020,
thirteen
million
dollars,
for
calendar
years
beginning
6
on
or
after
January
1,
2020,
but
before
January
1,
2022,
7
fifteen
million
dollars,
and
for
calendar
years
beginning
on
8
or
after
January
1,
2022,
but
before
January
1,
2026,
twenty
9
million
dollars
,
and
for
calendar
years
beginning
on
or
after
10
January
1,
2026,
but
before
January
1,
2027,
ten
million
11
dollars
.
12
Sec.
4.
Section
422.11S,
Code
2026,
is
amended
by
adding
the
13
following
new
subsection:
14
NEW
SUBSECTION
.
10.
This
section
is
repealed
July
1,
2032.
15
DIVISION
II
16
REPEAL
OF
SCHOOL
TUITION
ORGANIZATION
TAX
CREDIT
——
FUTURE
17
CHANGES
18
Sec.
5.
Section
2.48,
subsection
3,
paragraph
b,
19
subparagraph
(3),
Code
2026,
is
amended
by
striking
the
20
subparagraph.
21
Sec.
6.
Section
22A.6,
subsection
1,
paragraph
d,
Code
2026,
22
is
amended
by
striking
the
paragraph.
23
Sec.
7.
Section
422.33,
subsection
28,
Code
2026,
is
amended
24
by
striking
the
subsection.
25
Sec.
8.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
26
effect
July
1,
2032.
27
EXPLANATION
28
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
29
the
explanation’s
substance
by
the
members
of
the
general
assembly.
30
This
bill
repeals
the
school
tuition
organization
(STO)
tax
31
credit
available
against
the
individual
and
corporate
income
32
taxes.
33
DIVISION
I.
Under
the
bill,
a
contribution
made
by
a
34
taxpayer
to
an
STO
on
or
after
July
1,
2026,
shall
not
be
used
35
-2-
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2152
by
the
taxpayer
as
a
tax
credit
to
reduce
the
individual
or
1
corporate
income
tax.
The
bill
prohibits
an
STO
from
issuing
2
tax
credit
certificates
for
contributions
made
to
the
STO
on
3
or
after
July
1,
2026.
4
The
bill
reduces
the
total
amount
of
approved
STO
tax
credits
5
that
may
be
issued
in
calendar
year
2026
from
$20
million
to
6
$10
million
due
to
the
repeal
occurring
at
the
midpoint
of
the
7
calendar
year.
The
bill
strikes
the
credit
occurring
each
8
calendar
year
after
calendar
year
2026.
9
The
bill
repeals
Code
section
422.11S
(STO
tax
credit)
on
10
July
1,
2032,
due
to
the
carryforward
capability
of
the
tax
11
credit
in
Code
section
422.11S(3).
12
DIVISION
II.
The
bill
strikes
internal
references
to
Code
13
section
422.11S
on
the
date
that
the
Code
section
is
repealed.
14
This
division
takes
effect
on
July
1,
2032.
15
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