Bill Text: IA SF2348 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act relating to the individual income tax by creating a tax credit for community college students pursuing a credential leading to a high-demand occupation and including applicability provisions. (Formerly SF 2046.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2018-04-17 - Subcommittee recommends amendment and passage. [SF2348 Detail]
Download: Iowa-2017-SF2348-Introduced.html
Senate File 2348 - Introduced SENATE FILE BY COMMITTEE ON EDUCATION (SUCCESSOR TO SF 2046) A BILL FOR 1 An Act relating to the individual income tax by creating 2 a tax credit for community college students pursuing a 3 credential leading to a high=demand occupation and including 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 5063SV (2) 87 kh/jh PAG LIN 1 1 Section 1. NEW SECTION. 260C.41 High=demand occupation tax 1 2 credit ==== agreement. 1 3 1. A high=demand occupation tax credit is allowed under this 1 4 section. The tax credit is allowed against the taxes imposed 1 5 in chapter 422, division II, as provided in section 422.11K, 1 6 to facilitate an increase in the number of Iowans prepared to 1 7 enter high=demand occupational fields. 1 8 2. In order to qualify for the tax credit, the taxpayer 1 9 must meet qualifications established by the board of directors 1 10 of the community college in which the taxpayer enrolled and 1 11 attended a course of study in accordance with this subsection. 1 12 At a minimum, the taxpayer must comply with all of the 1 13 following: 1 14 a. Be a resident of Iowa who enrolls in a community 1 15 college in a course of study which results in the community 1 16 college conferring a credential that qualifies the taxpayer 1 17 for a high=demand occupation. For purposes of this section, 1 18 "credential" means a postsecondary certificate, diploma, or 1 19 degree, but not more than an associate degree. For purposes 1 20 of this section, "high=demand occupation" means an occupation 1 21 in the fields of science, technology, engineering, and 1 22 mathematics, and occupations aligned with the six career and 1 23 technical education service areas as defined in section 256.11, 1 24 subsection 5, paragraph "h". 1 25 b. Execute an agreement with the community college under 1 26 which the taxpayer maintains a grade point average of at least 1 27 two on a four=point grade scale, or the equivalent if another 1 28 grade scale is used, until the taxpayer is issued a credential 1 29 by the community college for successful completion of a course 1 30 of study that meets the requirements of paragraph "a". The 1 31 agreement shall be for at least two years, but not more than 1 32 five years. 1 33 3. a. If the taxpayer meets the terms of the agreement 1 34 entered into under subsection 2, the community college shall 1 35 submit to the department of revenue the total amount of tuition 2 1 and mandatory fees paid by the taxpayer in earning a credential 2 2 under this section. 2 3 b. The department of revenue shall issue the tax credit 2 4 certificate to the taxpayer upon receipt of information 2 5 submitted to the department of revenue by a community college 2 6 in accordance with this subsection. 2 7 4. The tax credit shall equal the gross amount paid to the 2 8 community college for tuition and mandatory fees paid by the 2 9 taxpayer under the agreement. 2 10 5. a. To claim a tax credit under this section, a taxpayer 2 11 shall include one or more tax credit certificates with the 2 12 taxpayer's tax return. 2 13 b. The tax credit certificate shall contain the taxpayer's 2 14 name, address, tax identification number, the amount of the 2 15 credit, and any other information required by the department 2 16 of revenue. 2 17 c. The tax credit certificate, unless rescinded by the 2 18 department of revenue, shall be accepted by the department 2 19 of revenue as payment for taxes imposed in chapter 422, 2 20 division II, subject to any conditions or restrictions placed 2 21 by the department of revenue upon the face of the tax credit 2 22 certificate and subject to the limitations of this tax credit. 2 23 6. A tax credit in excess of the taxpayer's liability for 2 24 the tax year is not refundable but may be credited to the tax 2 25 liability for the following five tax years or until depleted, 2 26 whichever is earlier. However, if the taxpayer enters into 2 27 active military service as a member of the Iowa army national 2 28 guard, the Iowa air national guard, the active military forces 2 29 of the United States, the army national guard of the United 2 30 States, or the air national guard of the United States, or 2 31 enrolls in an accredited private institution as defined in 2 32 section 261.9 or in an institution of higher learning governed 2 33 by the state board of regents, the tax credit may be credited 2 34 to the tax liability for an additional two years or until 2 35 depleted, whichever is earlier. A tax credit shall not be 3 1 carried back to a tax year prior to the tax year in which the 3 2 taxpayer redeems the tax credit. A tax credit shall not be 3 3 transferable to any other person. 3 4 Sec. 2. NEW SECTION. 422.11K High=demand occupation tax 3 5 credit. 3 6 The taxes imposed under this division, less the credits 3 7 allowed under section 422.12, shall be reduced by a high=demand 3 8 occupation tax credit allowed under section 260C.41. 3 9 Sec. 3. APPLICABILITY. This Act applies to tax years 3 10 beginning on or after January 1, 2019. 3 11 EXPLANATION 3 12 The inclusion of this explanation does not constitute agreement with 3 13 the explanation's substance by the members of the general assembly. 3 14 This bill provides for a high=demand occupation tax credit 3 15 to facilitate an increase in the number of Iowans prepared to 3 16 enter high=demand occupational fields. 3 17 To qualify, the taxpayer must enroll in and attend a course 3 18 of study at a community college which results in the community 3 19 college conferring a credential that qualifies the taxpayer 3 20 for a high=demand occupation. The bill defines "high=demand 3 21 occupation" as an occupation in the fields of science, 3 22 technology, engineering, and mathematics, and occupations 3 23 aligned with any of six career and technical education service 3 24 areas. 3 25 The taxpayer must also execute an agreement with the 3 26 community college for at least two years, but not more than 3 27 five years, under which the taxpayer maintains a grade point 3 28 average of at least 2.0 on a 4.0 grade scale. 3 29 If the taxpayer meets the terms of the agreement, the 3 30 community college submits to the department of revenue the 3 31 total amount of tuition and mandatory fees paid by the taxpayer 3 32 in earning a credential, and the department must issue the 3 33 tax credit certificate. The tax credit shall equal the gross 3 34 amount paid by the taxpayer to the community college for 3 35 tuition and mandatory fees. 4 1 A tax credit in excess of the taxpayer's liability for 4 2 the tax year is not refundable but may be credited to the 4 3 personal net income tax liability for the following five tax 4 4 years or until depleted, whichever is earlier. However, if 4 5 the taxpayer enters into active military service or enrolls 4 6 in an accredited private postsecondary institution in Iowa or 4 7 a regents university, the tax credit may be credited to the 4 8 tax liability for an additional two years or until depleted, 4 9 whichever is earlier. 4 10 The bill applies to tax years beginning on or after January 4 11 1, 2019. LSB 5063SV (2) 87 kh/jh
