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 .)

Senate

File

379

-

Introduced

SENATE

FILE

379

BY

COMMITTEE

ON

WORKFORCE

(SUCCESSOR

TO

SSB

1119)

A

BILL

FOR

An

Act

creating

a

deduction

available

against

the

individual

1

income

tax

for

educational

expenses

at

institutions

2

of

higher

education

for

career-related

programs

and

3

apprenticeship

programs,

and

including

retroactive

4

applicability

provisions.

5

BE

IT

ENACTED

BY

THE

GENERAL

ASSEMBLY

OF

THE

STATE

OF

IOWA:

6

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S.F.

379

Section

1.

Section

422.7,

Code

2025,

is

amended

by

adding

1

the

following

new

subsection:

2

NEW

SUBSECTION

.

45.

a.

Subtract,

to

the

extent

included,

3

the

payment

of

expenses

for

the

following:

4

(1)

For

instruction

at

an

institution

of

higher

education

5

for

career-related

programs

that

do

not

qualify

for

college

6

credit.

7

(2)

For

participation

in

an

apprenticeship

program.

8

b.

Payments

made

from

the

Iowa

education

savings

plan

9

established

in

chapter

12D

or

from

a

similar

plan

do

not

10

qualify

for

the

deduction

under

this

subsection.

11

c.

The

department

shall

adopt

rules

pursuant

to

chapter

17A

12

to

implement

this

subsection.

13

d.

As

used

in

this

subsection:

14

(1)

“Apprenticeship

program”

means

a

program

registered

with

15

the

Iowa

office

of

apprenticeship

under

chapter

84D.

16

(2)

“Expenses”

means

tuition,

fees,

books,

supplies,

and

17

equipment.

18

(3)

“Institution

of

higher

education”

means

any

of

the

19

following:

20

(a)

A

community

college

established

under

chapter

260C.

21

(b)

An

institution

governed

by

the

state

board

of

regents.

22

(c)

An

accredited

private

institution

as

defined

in

section

23

256.183,

subsection

1.

24

(4)

“Payment”

includes

loan

repayments

for

expenses

paid

25

for

instruction

at

an

institution

of

higher

education

and

for

26

payments

of

expenses

for

instruction

at

an

institution

of

27

higher

education

and

for

the

participation

in

an

apprenticeship

28

program.

29

Sec.

2.

RETROACTIVE

APPLICABILITY.

This

Act

applies

30

retroactively

to

January

1,

2025,

for

tax

years

beginning

on

31

or

after

that

date.

32

EXPLANATION

33

The

inclusion

of

this

explanation

does

not

constitute

agreement

with

34

the

explanation’s

substance

by

the

members

of

the

general

assembly.

35

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S.F.

379

This

bill

creates

a

deduction

available

against

the

1

individual

income

tax

for

educational

expenses

at

institutions

2

of

higher

education

and

apprenticeship

programs.

3

The

bill

allows

an

individual

income

taxpayer

to

deduct

the

4

expenses

for

instruction

at

an

institution

of

higher

education

5

for

career-related

programs

that

do

not

qualify

for

college

6

credit,

and

for

participation

in

an

apprenticeship

program

7

registered

with

the

Iowa

office

of

apprenticeship

under

Code

8

chapter

84D.

9

The

bill

defines

“institution

of

higher

education”,

10

“expenses”,

and

“payment”.

11

The

bill

applies

retroactively

to

tax

years

beginning

on

or

12

after

January

1,

2025.

13

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