Bill Text: IA SF469 | 2015-2016 | 86th General Assembly | Introduced

Iowa Senate Bill 469 (Prior Session Legislation)

Introduced

Bill Title: A bill for an act providing a deduction from the individual income tax for the amount of interest paid on a qualified educational loan and including retroactive applicability provisions.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2015-03-17 - Subcommittee, Bolkcom, Hogg, and Smith. S.J. 600. [SF469 Detail]

Download: Iowa-2015-SF469-Introduced.html

Senate File 469 - Introduced




                                 SENATE FILE       
                                 BY  CHELGREN

                                      A BILL FOR

  1 An Act providing a deduction from the individual income tax for
  2    the amount of interest paid on a qualified educational loan
  3    and including retroactive applicability provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
    TLSB 2412XS (2) 86
    mm/sc

PAG LIN



  1  1    Section 1.  Section 422.7, Code 2015, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  18.  Subtract, to the extent not already
  1  4 excluded, the amount of interest paid by the taxpayer during
  1  5 the tax year on a qualified educational loan, as defined in
  1  6 section 221 of the Internal Revenue Code.
  1  7    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies
  1  8 retroactively to January 1, 2015, for tax years beginning on
  1  9 or after that date.
  1 10                           EXPLANATION
  1 11 The inclusion of this explanation does not constitute agreement with
  1 12 the explanation's substance by the members of the general assembly.
  1 13    This bill relates to the deduction of student loan interest
  1 14 for purposes of the individual income tax.
  1 15    Under current law for federal income tax purposes and Iowa
  1 16 income tax purposes, an individual is allowed to deduct up
  1 17 to $2,500 of interest paid on a qualified education loan.
  1 18 However, this deduction is gradually phased out for individuals
  1 19 with income in excess of $65,000 ($130,000 for a married
  1 20 couple filing a joint return), and is completely phased out
  1 21 for individuals with income of $80,000 or more ($160,000 for a
  1 22 married couple filing a joint return).  These income phase=out
  1 23 levels are adjusted for inflation each year according to
  1 24 federal  law.
  1 25    The bill allows an individual to deduct, for Iowa income tax
  1 26 purposes, the total amount of interest paid during the tax year
  1 27 on a qualified educational loan.
  1 28    The bill applies retroactively to tax years beginning on or
  1 29 after January 1, 2015.
       LSB 2412XS (2) 86
       mm/sc