Read the full stored bill text
House
File
2525
-
Introduced
HOUSE
FILE
2525
BY
WULF
A
BILL
FOR
An
Act
creating
tax
deductions
against
the
individual
income
1
tax
for
veterinarians
by
providing
a
deduction
for
income
2
resulting
from
rural
veterinarian
loan
repayments
and
by
3
allowing
a
deduction
for
the
amount
of
interest
paid
on
4
student
loans
for
attendance
at
a
veterinary
school,
and
5
including
retroactive
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
TLSB
5973YH
(2)
91
jm/jh
H.F.
2525
Section
1.
Section
422.7,
Code
2026,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
46.
a.
(1)
Subtract,
to
the
extent
3
included,
income
resulting
from
loan
repayments
received
under
4
a
program
agreement
entered
into
by
a
taxpayer
who
is
a
loan
5
repayment
recipient
and
the
Iowa
college
student
aid
commission
6
pursuant
to
section
256.226,
if
the
taxpayer
fulfills
the
7
obligation
to
engage
in
the
practice
of
veterinary
medicine
8
according
to
terms
of
that
section
and
the
program
agreement.
9
(2)
The
deduction
in
subparagraph
(1)
shall
not
exceed
the
10
following
limits:
11
(a)
For
any
tax
year,
fifteen
thousand
dollars.
12
(b)
For
the
aggregate
of
all
tax
years,
sixty
thousand
13
dollars.
14
(c)
In
any
case,
the
amount
of
the
outstanding
eligible
15
loan.
16
b.
(1)
Subtract,
to
the
extent
not
already
excluded,
the
17
amount
of
interest
paid
by
a
veterinarian
during
the
tax
year
18
on
a
qualified
education
loan
for
attendance
at
an
accredited
19
or
approved
college
of
veterinary
medicine,
if
the
veterinarian
20
practiced
veterinary
medicine
in
the
state
during
the
tax
year.
21
(2)
The
deduction
in
this
paragraph
“b”
shall
not
be
allowed
22
when
the
taxpayer
is
receiving
a
loan
repayment
pursuant
to
23
section
256.226
in
the
same
tax
year.
24
(3)
As
used
in
this
paragraph
“b”
:
25
(a)
“Accredited
or
approved
college
of
veterinary
medicine”
26
means
the
same
as
defined
in
section
169.3.
27
(b)
“Qualified
education
loan”
means
the
same
as
defined
in
28
section
221
of
the
Internal
Revenue
Code.
29
(c)
“Veterinarian”
means
the
same
as
defined
in
section
30
169.3.
31
(d)
“Veterinary
medicine”
means
the
same
as
defined
in
32
section
169.3.
33
c.
The
department
shall
adopt
rules
pursuant
to
chapter
34
17A
to
administer
this
subsection
including
the
number
of
days
35
-1-
LSB
5973YH
(2)
91
jm/jh
1/
3
H.F.
2525
of
veterinarian
practice
required
in
this
state
in
order
to
be
1
eligible
for
the
deduction
under
paragraph
“b”
.
2
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
3
retroactively
to
January
1,
2026,
for
tax
years
beginning
on
4
or
after
that
date.
5
EXPLANATION
6
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
7
the
explanation’s
substance
by
the
members
of
the
general
assembly.
8
This
bill
creates
two
separate
tax
deductions
against
9
the
individual
income
tax
for
veterinarians
by
providing
a
10
deduction
for
income
resulting
from
rural
veterinarian
loan
11
repayments
and
by
allowing
a
deduction
for
the
amount
of
12
interest
paid
on
student
loans
for
attendance
at
a
veterinary
13
school.
14
DEDUCTION
FOR
RURAL
VETERINARIAN
LOAN
REPAYMENTS.
The
bill
15
allows
a
licensed
veterinarian
participating
in
the
rural
16
veterinarian
loan
repayment
program
to
deduct
net
income
17
attributable
to
loan
payments
received
under
the
program,
18
subject
to
the
restrictions
provided
in
the
program.
The
19
amount
subject
to
the
exclusion
cannot
exceed
$15,000
per
tax
20
year,
and
an
aggregate
of
$60,000
for
all
tax
years.
However,
21
in
any
case,
the
excluded
amount
cannot
exceed
the
amount
of
22
the
outstanding
eligible
loan.
23
DEDUCTION
FOR
INTEREST
AMOUNT
PAID
ON
STUDENT
LOANS.
Under
24
current
law
for
federal
income
tax
purposes
and
therefore
for
25
Iowa
income
tax
purposes,
an
individual
is
allowed
to
deduct
26
up
to
$2,500
of
interest
paid
on
a
qualified
education
loan
27
(section
221
of
the
Internal
Revenue
Code).
However,
this
28
deduction
is
gradually
phased
out
based
upon
the
taxpayer’s
29
income
level.
30
The
bill
allows
a
veterinarian
to
deduct,
for
Iowa
income
tax
31
purposes,
the
total
amount
of
interest
paid
during
the
tax
year
32
on
a
qualified
education
loan
for
attendance
at
an
accredited
33
or
approved
college
of
veterinary
medicine,
if
the
veterinarian
34
practiced
veterinary
medicine
in
the
state
during
the
tax
year.
35
-2-
LSB
5973YH
(2)
91
jm/jh
2/
3
H.F.
2525
The
deduction
for
the
interest
paid
during
the
tax
year
is
not
1
allowed
if
the
veterinarian
is
receiving
a
loan
repayment
under
2
the
rural
education
loan
repayment
program
in
the
same
tax
3
year.
4
RULES.
The
department
of
revenue
is
required
to
adopt
rules
5
to
administer
the
bill
including
establishing
the
number
of
6
days
of
veterinarian
practice
required
in
this
state
in
order
7
to
be
eligible
for
the
deduction
for
the
amounts
paid
for
8
student
loan
interest.
9
APPLICABILITY.
The
bill
applies
retroactively
to
tax
years
10
beginning
on
or
after
January
1,
2026.
11
-3-
LSB
5973YH
(2)
91
jm/jh
3/
3