Bill Text: IA SF572 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to certain education programs and tax credits and including effective date, applicability, and retroactive applicability provisions.(Formerly SSB 1208.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2023-06-05 - Referred to Ways and Means. S.J. 1092. [SF572 Detail]
Download: Iowa-2023-SF572-Introduced.html
Senate
File
572
-
Introduced
SENATE
FILE
572
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
SSB
1208)
A
BILL
FOR
An
Act
relating
to
certain
education
programs
and
tax
credits
1
and
including
effective
date,
applicability,
and
retroactive
2
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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DIVISION
I
1
TUITION
AND
TEXTBOOK
TAX
CREDIT
2
Section
1.
Section
422.12,
subsection
2,
paragraph
b,
Code
3
2023,
is
amended
to
read
as
follows:
4
b.
A
tuition
credit
equal
to
twenty-five
percent
of
the
5
first
two
thousand
dollars
which
the
taxpayer
has
paid
to
6
others
for
each
dependent
in
grades
kindergarten
through
7
twelve,
for
tuition
and
textbooks
of
each
dependent
who
8
is
receiving
private
instruction
or
who
is
attending
an
9
elementary
or
secondary
school
situated
in
Iowa,
which
school
10
is
accredited
or
approved
under
section
256.11
,
which
is
not
11
operated
for
profit,
and
which
adheres
to
the
provisions
of
12
the
federal
Civil
Rights
Act
of
1964
and
chapter
216
.
Amounts
13
paid
from
an
account
in
the
education
savings
account
fund
14
under
section
257.11B,
as
enacted
by
2023
Iowa
Acts,
House
File
15
68,
section
7,
shall
not
be
eligible
for
the
credit
under
this
16
paragraph.
Notwithstanding
any
other
provision,
all
other
17
credits
allowed
under
this
subsection
shall
be
deducted
before
18
the
tuition
credit
under
this
paragraph.
The
department,
when
19
conducting
an
audit
of
a
taxpayer’s
return,
shall
also
audit
20
the
tuition
tax
credit
portion
of
the
tax
return.
21
Sec.
2.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
22
deemed
of
immediate
importance,
takes
effect
upon
enactment.
23
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
division
of
this
24
Act
applies
retroactively
to
tax
years
beginning
on
or
after
25
January
1,
2023.
26
DIVISION
II
27
SCHOOL
TUITION
ORGANIZATION
GRANTS
28
Sec.
4.
Section
422.11S,
subsection
6,
paragraph
c,
29
subparagraph
(1),
Code
2023,
is
amended
to
read
as
follows:
30
(1)
Allocates
at
least
ninety
percent
of
its
annual
revenue
31
within
three
calendar
years
from
January
1
of
the
calendar
year
32
during
which
the
revenues
were
received
in
tuition
grants
for
33
children
to
allow
them
to
attend
a
qualified
school
of
their
34
parents’
choice.
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Sec.
5.
Section
422.11S,
subsection
6,
paragraph
c,
Code
1
2023,
is
amended
by
adding
the
following
new
subparagraph:
2
NEW
SUBPARAGRAPH
.
(05)
For
eligible
students
participating
3
in
the
education
savings
account
program
under
section
257.11B,
4
as
enacted
by
2023
Iowa
Acts,
House
File
68,
section
7,
only
5
provides
tuition
grants
in
amounts
not
to
exceed
the
tuition
6
amount
for
which
the
parent
or
guardian
is
responsible
for
7
payment
following
application
of
amounts
paid
using
moneys
from
8
the
student’s
account
in
the
education
savings
account
fund.
9
Sec.
6.
Section
422.11S,
subsection
8,
paragraph
a,
10
subparagraph
(2),
Code
2023,
is
amended
to
read
as
follows:
11
(2)
“Total
approved
tax
credits”
means
for
the
2006
calendar
12
year,
two
million
five
hundred
thousand
dollars,
for
the
13
2007
calendar
year,
five
million
dollars,
for
calendar
years
14
beginning
on
or
after
January
1,
2008,
but
before
January
1,
15
2012,
seven
million
five
hundred
thousand
dollars,
for
calendar
16
years
beginning
on
or
after
January
1,
2012,
but
before
January
17
1,
2014,
eight
million
seven
hundred
fifty
thousand
dollars,
18
for
calendar
years
beginning
on
or
after
January
1,
2014,
but
19
before
January
1,
2019,
twelve
million
dollars,
for
calendar
20
years
beginning
on
or
after
January
1,
2019,
but
before
21
January
1,
2020,
thirteen
million
dollars,
for
calendar
years
22
beginning
on
or
after
January
1,
2020,
but
before
January
23
1,
2022,
fifteen
million
dollars,
and
for
calendar
years
24
beginning
on
or
after
January
1,
2022,
but
before
January
1,
25
2024,
twenty
million
dollars
,
for
the
calendar
year
beginning
26
January
1,
2024,
seventeen
million
dollars,
and
for
calendar
27
years
beginning
on
or
after
January
1,
2025,
fourteen
million
28
dollars
.
29
Sec.
7.
RETROACTIVE
APPLICABILITY.
The
section
of
this
30
division
of
this
Act
amending
section
422.11S,
subsection
6,
31
paragraph
“c”,
subparagraph
(1),
applies
retroactively
to
32
contributions
to
a
school
tuition
organization
made
on
or
after
33
January
1,
2022.
34
Sec.
8.
APPLICABILITY.
The
section
of
this
division
of
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this
Act
enacting
section
422.11S,
subsection
6,
paragraph
“c”,
1
subparagraph
(05),
applies
to
tuition
grants
made
for
school
2
years
beginning
on
or
after
July
1,
2023.
3
DIVISION
III
4
EDUCATION
SAVINGS
ACCOUNTS
——
ADMINISTRATION
OF
FUNDS
5
Sec.
9.
Section
257.11B,
subsection
6,
paragraph
c,
as
6
enacted
by
2023
Iowa
Acts,
House
File
68,
section
7,
is
amended
7
to
read
as
follows:
8
c.
Moneys
remaining
in
a
pupil’s
individual
account
upon
9
conclusion
of
the
fiscal
year
shall
remain
in
the
pupil’s
10
individual
account
for
the
payment
of
qualified
educational
11
expenses
in
future
consecutive
fiscal
years
during
which
the
12
pupil
participates
in
the
program
until
the
pupil
becomes
13
ineligible
under
the
program
or
until
the
remaining
amounts
are
14
transferred
to
the
state
general
fund
under
subsection
8.
If
15
moneys
remain
in
a
pupil’s
individual
account
upon
conclusion
16
of
the
fiscal
year
and
the
pupil
does
not
participate
in
the
17
program
during
the
immediately
succeeding
fiscal
year,
the
18
department
of
education
or
third-party
entity
shall
close
the
19
pupil’s
account
in
the
fund,
and
transfer
any
remaining
moneys
20
in
the
account
for
deposit
in
the
general
fund
of
the
state.
21
Sec.
10.
Section
257.11B,
subsection
7,
as
enacted
by
2023
22
Iowa
Acts,
House
File
68,
section
7,
is
amended
to
read
as
23
follows:
24
7.
a.
A
person
who
makes
a
false
claim
for
the
purpose
of
25
obtaining
an
education
savings
account
payment
or
who
knowingly
26
receives
the
payment
or
makes
a
payment
from
an
individual
27
account
within
the
fund
without
being
legally
entitled
to
do
28
so
is
guilty
of
a
fraudulent
practice
under
chapter
714.
The
29
false
claim
for
an
education
savings
account
or
a
payment
from
30
an
individual
account
shall
be
disallowed.
The
department
of
31
education
or
third-party
entity
shall
also
close
the
pupil’s
32
individual
account
in
the
fund
and
transfer
any
remaining
33
moneys
in
the
account
for
deposit
in
the
general
fund
of
the
34
state.
If
the
improperly
obtained
amounts
have
been
disbursed
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from
the
applicable
individual
account,
the
department
of
1
education
or
third-party
entity
shall
recover
such
amounts
2
from
the
parent
or
guardian,
including
by
initiating
legal
3
proceedings
to
recover
such
amounts,
if
necessary.
A
parent
or
4
guardian
who
commits
a
fraudulent
practice
under
this
section
5
is
prohibited
from
participating
in
the
education
savings
6
account
program
in
the
future.
7
b.
(1)
If,
prior
to
the
end
of
the
required
attendance
8
period
of
the
school
year,
a
pupil
who
receives
an
education
9
savings
account
payment
withdraws
from
enrollment
in
the
10
nonpublic
school
or
is
expelled,
the
nonpublic
school
shall
11
notify
the
department
of
education
or
third-party
entity
in
12
writing
of
the
pupil’s
withdrawal
or
expulsion.
13
(2)
Upon
receipt
of
a
notice
of
expulsion,
the
department
14
of
education
or
third-party
entity
shall
cease
disbursements
15
of
remaining
moneys
in
the
pupil’s
account,
close
the
pupil’s
16
account
in
the
fund,
and
transfer
any
remaining
moneys
in
the
17
account
for
deposit
in
the
general
fund
of
the
state.
18
(3)
Upon
receipt
of
a
notice
of
withdrawal
and
a
19
determination
that
the
pupil
did
not
enroll
in
a
different
20
nonpublic
school
in
this
state
for
the
remainder
of
the
school
21
year,
the
department
of
education
or
third-party
entity
shall
22
cease
disbursements
of
remaining
moneys
in
the
pupil’s
account
23
in
the
fund,
close
the
pupil’s
account,
and
transfer
any
moneys
24
remaining
in
the
pupil’s
account
for
deposit
in
the
general
25
fund
of
the
state.
26
Sec.
11.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
27
deemed
of
immediate
importance,
takes
effect
upon
enactment.
28
Sec.
12.
RETROACTIVE
APPLICABILITY.
This
division
of
this
29
Act
applies
retroactively
to
January
24,
2023.
30
DIVISION
IV
31
NONPUBLIC
SCHOOL
PUPIL
TEXTBOOK
SERVICES
32
Sec.
13.
Section
301.1,
subsections
2
and
3,
Code
2023,
are
33
amended
by
striking
the
subsections.
34
Sec.
14.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
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effect
July
1,
2025.
1
DIVISION
V
2
EDUCATION
SAVINGS
ACCOUNTS
——
CORRECTIONS
3
Sec.
15.
Section
257.11B,
subsection
2,
paragraph
a,
4
subparagraph
(1),
subparagraph
division
(c),
as
enacted
by
2023
5
Iowa
Acts,
House
File
68,
section
7,
is
amended
to
read
as
6
follows:
7
(c)
A
resident
pupil
who
is
eligible
to
enroll
in
grades
one
8
through
twelve
and
was
enrolled
in
a
nonpublic
school
for
the
9
school
year
immediately
preceding
the
school
year
for
which
the
10
education
savings
account
payment
is
requested
if
the
pupil’s
11
household
has
an
annual
income
less
than
or
equal
to
three
12
hundred
percent
of
the
most
recently
revised
poverty
income
13
guidelines
published
by
the
United
States
department
of
health
14
and
human
services.
15
Sec.
16.
Section
257.46,
subsection
3,
Code
2023,
as
amended
16
by
2023
Iowa
Acts,
House
File
68,
section
16,
is
amended
to
17
read
as
follows:
18
3.
If
any
portion
of
the
gifted
and
talented
program
budget
19
remains
unexpended
at
the
end
of
the
budget
year,
the
remainder
20
shall
be
carried
over
to
the
subsequent
budget
year
and
added
21
to
the
gifted
and
talented
program
budget
for
that
year.
At
22
the
end
of
a
fiscal
year
beginning
on
or
after
July
1,
2022,
23
the
school
district
may
use
all
or
a
portion
of
funds
for
24
the
purposes
authorized
under
section
257.10,
subsection
9,
25
paragraph
“d”
.
26
Sec.
17.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
27
deemed
of
immediate
importance,
takes
effect
upon
enactment.
28
Sec.
18.
RETROACTIVE
APPLICABILITY.
This
division
of
this
29
Act
applies
retroactively
to
January
24,
2023.
30
EXPLANATION
31
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
32
the
explanation’s
substance
by
the
members
of
the
general
assembly.
33
This
bill
relates
to
certain
education
programs
and
tax
34
credits.
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572
DIVISION
I
——
TUITION
AND
TEXTBOOK
TAX
CREDIT.
Code
section
1
422.12(2)(b)
provides
an
income
tax
tuition
credit
equal
to
2
25
percent
of
the
first
$2,000
which
the
taxpayer
has
paid
to
3
others
for
each
dependent
in
grades
kindergarten
through
12,
4
for
tuition
and
textbooks
of
each
dependent
who
is
receiving
5
private
instruction
or
who
is
attending
an
elementary
or
6
secondary
school
situated
in
Iowa
meeting
certain
criteria.
7
The
bill
specifies
that
amounts
paid
from
an
account
in
the
8
education
savings
account
fund
under
Code
section
257.11B,
as
9
enacted
by
2023
Iowa
Acts,
House
File
68,
shall
not
be
eligible
10
for
the
credit.
11
Division
I
takes
effect
upon
enactment
and
applies
12
retroactively
to
tax
years
beginning
on
or
after
January
1,
13
2023.
14
DIVISION
II
——
SCHOOL
TUITION
ORGANIZATION
GRANTS.
15
Code
sections
422.11S
and
422.33
provide
a
school
tuition
16
organization
tax
credit
against
the
individual
income
tax
17
and
corporate
income
tax,
respectively,
for
contributions
18
made
by
the
taxpayer
during
the
tax
year
to
a
school
tuition
19
organization.
The
bill
adds
a
requirement
to
the
criteria
for
20
a
school
tuition
organization
by
specifying
that
for
eligible
21
students
participating
in
the
education
savings
account
program
22
under
Code
section
257.11B,
the
organization
only
provides
23
tuition
grants
in
amounts
not
to
exceed
the
tuition
amount
24
for
which
the
parent
or
guardian
is
responsible
for
payment
25
following
application
of
amounts
paid
using
moneys
from
the
26
student’s
account
in
the
education
savings
account
fund.
This
27
provision
applies
to
tuition
grants
made
for
school
years
28
beginning
on
or
after
July
1,
2023.
29
The
bill
requires
school
tuition
organizations
to
allocate
30
90
percent
of
annual
revenues
as
tuition
grants
within
three
31
years
from
January
1
of
the
calendar
year
during
which
the
32
revenues
were
received.
This
provision
applies
retroactively
33
to
contributions
to
a
school
tuition
organization
made
on
or
34
after
January
1,
2022.
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The
bill
also
reduces
the
total
annual
amount
of
available
1
school
tuition
organization
tax
credits
for
the
calendar
year
2
beginning
January
1,
2024,
from
$20
million
to
$17
million,
and
3
to
$14
million
for
calendar
years
beginning
on
or
after
January
4
1,
2025.
5
DIVISION
III
——
EDUCATION
SAVINGS
ACCOUNTS
——
ADMINISTRATION
6
OF
FUNDS.
Code
section
257.11B,
as
enacted
by
2023
Iowa
Acts,
7
House
File
68,
section
7,
specifies
that
moneys
remaining
in
a
8
pupil’s
individual
account
upon
conclusion
of
the
fiscal
year
9
shall
remain
in
the
pupil’s
individual
account
for
the
payment
10
of
qualified
educational
expenses
in
future
fiscal
years
during
11
which
the
pupil
participates
in
the
program
until
the
pupil
12
becomes
ineligible
under
the
program
or
until
the
remaining
13
amounts
are
transferred
to
the
state
general
fund
as
required
14
in
that
Code
section.
The
bill
provides
that
such
remaining
15
moneys
are
available
for
future
consecutive
fiscal
years
during
16
which
the
pupil
participates
in
the
program.
The
bill
further
17
provides
that
if
moneys
remain
in
a
pupil’s
individual
account
18
upon
conclusion
of
the
fiscal
year
and
the
pupil
does
not
19
participate
in
the
program
during
the
immediately
succeeding
20
fiscal
year,
the
department
of
education
or
third-party
entity
21
shall
close
the
pupil’s
account
in
the
fund,
and
transfer
any
22
remaining
moneys
in
the
account
for
deposit
in
the
general
fund
23
of
the
state.
24
The
bill
also
amends
the
education
savings
account
program
25
under
Code
section
257.11B
by
providing
that
if,
prior
to
the
26
end
of
the
required
attendance
period
of
the
school
year,
27
a
pupil
who
receives
an
education
savings
account
payment
28
withdraws
from
enrollment
in
the
nonpublic
school
or
is
29
expelled,
the
nonpublic
school
shall
notify
the
department
30
of
education
or
third-party
entity
in
writing
of
the
pupil’s
31
withdrawal
or
expulsion.
Under
the
bill,
upon
receipt
of
a
32
notice
of
expulsion,
the
department
of
education
or
third-party
33
entity
shall
cease
disbursements
of
remaining
moneys
in
the
34
pupil’s
account,
close
the
pupil’s
account
in
the
fund,
and
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transfer
any
remaining
moneys
in
the
account
for
deposit
in
1
the
general
fund
of
the
state.
Additionally,
upon
receipt
of
2
a
notice
of
withdrawal
and
a
determination
that
the
pupil
did
3
not
enroll
in
a
different
nonpublic
school
in
this
state
for
4
the
remainder
of
the
school
year,
the
department
of
education
5
or
third-party
entity
shall
cease
disbursements
of
remaining
6
moneys
in
the
pupil’s
account
in
the
fund,
close
the
pupil’s
7
account,
and
transfer
any
moneys
remaining
in
the
pupil’s
8
account
for
deposit
in
the
general
fund
of
the
state.
9
Division
III
takes
effect
upon
enactment
and
applies
10
retroactively
to
January
24,
2023.
11
DIVISION
IV
——
NONPUBLIC
SCHOOL
PUPIL
TEXTBOOK
SERVICES.
12
Code
section
301.1
authorizes
each
school
board
to
adopt
13
textbooks
for
the
district,
and
to
contract
for
and
buy
such
14
books
and
any
and
all
other
necessary
school
supplies
at
15
contract
prices,
and
to
sell
them
to
the
pupils
of
their
16
respective
districts
at
cost,
loan
such
textbooks
to
such
17
pupils
free,
or
rent
them
to
pupils.
In
addition,
Code
section
18
301.1,
subsections
2
and
3,
provides
that
textbooks
adopted
19
and
purchased
by
a
school
district
shall,
to
the
extent
funds
20
are
appropriated
by
the
general
assembly,
be
made
available
to
21
pupils
attending
accredited
nonpublic
schools
upon
request
of
22
the
pupil
or
the
pupil’s
parent
under
comparable
terms
as
made
23
available
to
pupils
attending
public
schools.
The
bill
strikes
24
those
subsections
of
Code
section
301.1
relating
to
a
school
25
district
making
such
textbooks
available
to
pupils
attending
26
nonpublic
schools.
27
Division
IV
takes
effect
July
1,
2025.
28
DIVISION
V
——
EDUCATION
SAVINGS
ACCOUNTS
——
CORRECTIONS.
29
Division
V
corrects
errors
and
omissions
in
Code
section
30
257.11B,
as
enacted
by
2023
Iowa
Acts,
House
File
68,
section
31
7.
32
Division
V
takes
effect
upon
enactment
and
applies
33
retroactively
to
January
24,
2023.
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