A bill for an act modifying the tuition and textbook tax credit available against the individual income tax, and including retroactive applicability provisions.

House

File

417

-

Introduced

HOUSE

FILE

417

BY

GUSTOFF

A

BILL

FOR

An

Act

modifying

the

tuition

and

textbook

tax

credit

available

1

against

the

individual

income

tax,

and

including

retroactive

2

applicability

provisions.

3

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

4

TLSB

2692YH

(2)

91

jm/jh

H.F.

417

Section

1.

Section

422.12,

subsection

2,

paragraph

b,

Code

1

2025,

is

amended

to

read

as

follows:

2

b.

A

tuition

credit

equal

to

twenty-five

fifty

percent

3

of

the

first

two

thousand

dollars

which

the

taxpayer

has

4

paid

to

others

for

each

dependent

in

grades

kindergarten

5

through

twelve,

for

tuition

and

textbooks

of

each

dependent

6

who

is

receiving

private

instruction

or

who

is

attending

an

7

elementary

or

secondary

school

situated

in

Iowa,

which

school

8

is

accredited

or

approved

under

section

256.11

,

which

is

not

9

operated

for

profit,

and

which

adheres

to

the

provisions

10

of

the

federal

Civil

Rights

Act

of

1964

and

chapter

216

.

11

Notwithstanding

any

other

provision,

all

other

credits

allowed

12

under

this

subsection

shall

be

deducted

before

the

tuition

13

credit

under

this

paragraph.

The

department,

when

conducting

14

an

audit

of

a

taxpayer’s

return,

shall

also

audit

the

tuition

15

tax

credit

portion

of

the

tax

return.

16

Sec.

2.

RETROACTIVE

APPLICABILITY.

This

Act

applies

17

retroactively

to

January

1,

2025,

for

tax

years

beginning

on

18

or

after

that

date.

19

EXPLANATION

20

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

21

the

explanation’s

substance

by

the

members

of

the

general

assembly.

22

Current

law

establishes

a

tuition

credit

equal

to

25

percent

23

of

the

first

$2,000

which

the

taxpayer

has

paid

to

others

for

24

each

dependent

in

grades

kindergarten

through

12,

for

tuition

25

and

textbooks

of

each

dependent

who

is

receiving

private

26

instruction

or

who

is

attending

an

elementary

or

secondary

27

school

situated

in

Iowa,

which

school

is

accredited

or

approved

28

under

Code

section

256.11,

which

is

not

operated

for

profit,

29

and

which

adheres

to

the

provisions

of

the

federal

Civil

Rights

30

Act

of

1964

and

Code

chapter

216

(Iowa

civil

rights

Act

of

31

1965).

This

bill

increases

the

amount

of

this

tax

credit

to

50

32

percent

of

the

first

$2,000.

The

bill

applies

retroactively

to

33

January

1,

2025,

for

tax

years

beginning

on

or

after

that

date.

34

-1-

LSB

2692YH

(2)

91

jm/jh

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