Bill Text: IA SSB1184 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for an act providing for a tax credit for the repayment of certain student loan debt and including applicability provisions.
Spectrum: Unknown
Status: (N/A - Dead) 2013-02-28 - Voted - Economic Growth. [SSB1184 Detail]
Download: Iowa-2013-SSB1184-Introduced.html
Senate
Study
Bill
1184
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
ECONOMIC
GROWTH
BILL
BY
CHAIRPERSON
SODDERS)
A
BILL
FOR
An
Act
providing
for
a
tax
credit
for
the
repayment
of
certain
1
student
loan
debt
and
including
applicability
provisions.
2
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
3
TLSB
1960XC
(7)
85
ad/sc
S.F.
_____
Section
1.
NEW
SECTION
.
261.114
Technology
Workers
Tax
1
Credit
Program.
2
1.
For
purposes
of
this
section,
unless
the
context
3
otherwise
requires:
4
a.
“Commission”
means
the
college
student
aid
commission.
5
b.
“Eligible
lender”
means
the
same
as
defined
in
section
6
261.35.
7
c.
“Program”
means
the
technology
workers
tax
credit
program
8
established
in
this
section.
9
d.
“Program
agreement”
means
an
agreement
entered
into
10
between
the
commission
and
a
technology
worker
pursuant
to
this
11
section.
12
e.
“Qualified
student
debt”
means
the
maximum
amount
of
13
an
eligible
technology
worker’s
student
loan
principal
as
14
determined
pursuant
to
this
section.
15
f.
“Technology
worker”
means
a
worker
employed
as
a
computer
16
and
information
scientist,
systems
analyst,
computer
programmer
17
or
developer,
or
computer
professional,
or
any
skilled
worker
18
who
performs
any
function
related
to
information
technology,
19
including
the
study,
design,
development,
implementation,
20
support,
or
management
of
computer-based
information
systems.
21
2.
The
commission
shall
establish
and
administer
a
22
technology
workers
tax
credit
program
pursuant
to
this
section.
23
The
purpose
of
the
program
is
to
reimburse
eligible
technology
24
workers,
or
employers
of
such
workers,
for
the
amount
of
25
qualified
student
debt
borrowed
and
repaid
in
order
to
attend
a
26
postsecondary
institution.
27
3.
The
commission
shall
coordinate
with
postsecondary
28
institutions,
technology
workers,
eligible
lenders,
and
the
29
department
of
revenue
in
the
administration
of
this
program.
30
4.
The
commission
shall
enter
into
a
program
agreement
with
31
an
eligible
technology
worker
residing
and
working
in
Iowa
who
32
wishes
to
participate
in
the
program.
As
part
of
the
program
33
agreement,
the
technology
worker
shall
covenant
and
agree
to
34
the
following:
35
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_____
a.
That
the
person
is
or
will
become
an
Iowa
resident
and
1
will
remain
an
Iowa
resident
for
the
entirety
of
each
tax
year
2
for
which
the
person
wishes
to
claim
a
tax
credit
under
the
3
program.
A
person
not
meeting
the
residency
requirements
of
4
this
paragraph
is
not
eligible
to
claim
a
tax
credit.
5
b.
That
the
person
was
enrolled
in
a
program
of
study
at
a
6
postsecondary
institution
and
has
qualified
student
debt.
7
c.
To
keep
all
necessary
financial
and
educational
records
8
relating
to
the
degree
pursued
and
the
qualified
student
debt
9
incurred
for
a
period
of
not
less
than
three
years
after
the
10
last
tax
year
in
which
a
tax
credit
under
the
program
is
11
claimed.
12
d.
That
only
repayment
of
qualified
student
debt
is
eligible
13
to
be
claimed
as
a
tax
credit
under
the
program.
14
e.
That
any
acceleration
in
the
repayment
schedule
of
the
15
qualified
student
debt
will
result
in
a
forfeiture
of
the
tax
16
credit
in
that
tax
year
and
all
subsequent
tax
years.
17
f.
To
refinance
the
loans
comprising
qualified
student
debt
18
only
if
the
loans
remain
separate
from
all
other
debt
and
if
19
both
annual
repayments
and
the
total
remaining
indebtedness
20
under
the
loan’s
amortization
schedule
will
be
reduced
by
such
21
refinancing.
22
5.
A
technology
worker
shall
not
enter
into
more
than
one
23
program
agreement
or
claim
the
tax
credit
available
under
the
24
program
more
than
once.
25
6.
a.
After
entering
into
a
program
agreement
with
an
26
eligible
technology
worker,
and
before
a
tax
credit
certificate
27
is
issued,
the
commission
shall
request
the
postsecondary
28
institution
in
which
the
technology
worker
was
enrolled
to
29
verify
the
technology
worker’s
enrollment
at
the
institution
30
and
to
certify
to
the
commission
the
technology
worker’s
amount
31
of
qualified
student
debt.
32
b.
The
program
agreement
shall
terminate
if
the
commission
33
is
unable
to
verify
the
technology
worker’s
enrollment
at
a
34
postsecondary
institution
or
unable
to
certify
the
amount
of
35
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8
S.F.
_____
the
technology
worker’s
qualified
student
debt.
1
7.
a.
An
eligible
technology
worker’s
qualified
student
2
debt
shall
be
the
total
amount
of
principal
borrowed
from
an
3
eligible
lender
for
purposes
of
paying
the
amount
of
tuition
4
and
mandatory
fees
required
in
order
to
obtain
a
degree
from
a
5
postsecondary
institution.
6
b.
Only
loans
included
as
part
of
a
financial
aid
package
7
awarded
to
the
eligible
technology
worker
by
a
postsecondary
8
institution
shall
be
included
in
the
amount
of
qualified
9
student
debt
determined
pursuant
to
this
subsection.
10
8.
After
verifying
whether
the
technology
worker
qualifies
11
for
the
program
and
after
certifying
the
amount
of
qualified
12
student
debt,
the
commission
shall
issue
to
the
technology
13
worker
a
tax
credit
certificate
which
shall
contain
the
14
technology
worker’s
name,
address,
tax
identification
number,
15
the
amount
of
the
tax
credit,
and
any
other
information
16
required
by
the
department
of
revenue.
17
9.
a.
(1)
A
technology
workers
tax
credit
shall
be
allowed
18
against
the
taxes
imposed
in
chapter
422,
divisions
II,
III,
19
and
V,
and
in
chapter
432,
and
against
the
moneys
and
credits
20
tax
imposed
in
section
533.329,
for
the
repayment
of
qualified
21
student
debt.
22
(2)
An
individual
may
claim
the
tax
credit
under
this
23
section
of
a
partnership,
limited
liability
company,
S
24
corporation,
estate,
or
trust
electing
to
have
income
taxed
25
directly
to
the
individual.
The
amount
claimed
by
the
26
individual
shall
be
based
upon
the
pro
rata
share
of
the
27
individual’s
earnings
from
the
partnership,
limited
liability
28
company,
S
corporation,
estate,
or
trust.
29
b.
(1)
An
employer
may
claim
a
tax
credit
under
this
30
section
for
payments
made
directly
to
an
eligible
lender
on
31
behalf
of
a
technology
worker
who
has
been
issued
a
tax
credit
32
certificate
pursuant
to
this
subsection.
33
(2)
The
employer
may
claim
the
tax
credit
in
an
amount
34
equal
to
the
payments
made
by
the
employer
of
qualified
student
35
-3-
LSB
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S.F.
_____
debt
that
came
due
during
the
technology
worker’s
period
of
1
employment
with
the
employer.
2
(3)
The
employer
may
require
a
person
to
provide
a
copy
of
3
the
program
agreement
and
a
copy
of
the
tax
credit
certificate
4
issued
pursuant
to
this
section
in
order
to
verify
that
a
5
person
is
an
eligible
technology
worker
with
qualified
student
6
debt.
7
(4)
The
employer
claiming
a
tax
credit
under
the
program
8
shall
retain
all
relevant
records
for
at
least
three
tax
years
9
following
the
last
tax
year
in
which
the
tax
credit
is
claimed.
10
c.
A
technology
worker
and
the
technology
worker’s
employer
11
may
both
claim
tax
credits
for
payments
of
qualified
student
12
debt
made
in
the
same
year,
but
the
same
payment
of
qualified
13
student
debt
shall
not
be
claimed
by
more
than
one
taxpayer.
14
d.
A
technology
worker
and
the
technology
worker’s
employer
15
shall
receive
a
credit
for
the
amount
of
qualified
student
debt
16
repaid
by
the
employer
or
technology
worker
up
to
a
combined
17
amount
of
one
thousand
dollars
each
year
for
a
maximum
of
five
18
years.
19
e.
Any
tax
credit
in
excess
of
the
taxpayer’s
liability
20
for
the
tax
year
is
not
refundable
but
may
be
credited
to
the
21
tax
liability
for
the
following
five
years
or
until
depleted,
22
whichever
is
earlier.
A
tax
credit
shall
not
be
carried
back
23
to
a
tax
year
prior
to
the
tax
year
in
which
the
taxpayer
first
24
receives
the
tax
credit.
25
f.
A
technology
worker
or
employer
may
claim
the
tax
credit
26
only
if
the
technology
worker
is
in
compliance
with
the
program
27
agreement,
and
the
technology
worker
is
not
in
arrears
on
the
28
repayment
schedule
for
the
qualified
student
debt.
29
10.
a.
(1)
To
claim
the
technology
workers
tax
credit,
30
a
technology
worker
shall
attach
the
tax
credit
certificate
31
issued
by
the
commission
to
the
taxpayer’s
tax
return.
32
(2)
To
claim
the
technology
workers
tax
credit
for
payments
33
made
on
behalf
of
a
technology
worker,
a
taxpayer
shall
attach
34
a
copy
of
the
tax
credit
certificate
issued
to
the
technology
35
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_____
worker
along
with
any
information
required
by
the
department
of
1
revenue
pertaining
to
the
payments
made
to
an
eligible
lender.
2
b.
The
tax
credit
certificate
attached
to
the
taxpayer’s
3
tax
return
shall
expire
on
or
after
the
last
day
of
the
taxable
4
year
for
which
the
taxpayer
is
claiming
the
tax
credit
and
show
5
a
tax
credit
amount
equal
to
or
greater
than
the
tax
credit
6
claimed
on
the
taxpayer’s
tax
return.
7
c.
The
tax
credit
certificate,
unless
rescinded
by
the
8
commission,
shall
be
accepted
by
the
department
of
revenue
as
9
payment
for
taxes
imposed
pursuant
to
chapter
422,
divisions
10
II,
III,
and
V,
and
in
chapter
432,
and
for
the
moneys
and
11
credits
tax
imposed
in
533.329,
subject
to
any
conditions
or
12
restrictions
placed
by
the
commission
upon
the
face
of
the
13
tax
credit
certificate
and
subject
to
the
limitations
of
this
14
section.
15
11.
Except
as
otherwise
provided
in
this
section,
a
tax
16
credit
certificate
is
not
transferable
to
any
person
or
entity.
17
12.
An
eligible
technology
worker
who
exercises
the
18
forbearance
or
deferment
provisions
of
a
student
loan
agreement
19
that
comprises
a
portion
of
the
technology
worker’s
qualified
20
student
debt
does
not
forfeit
the
right
to
claim
the
tax
credit
21
available
under
this
section.
The
department
of
revenue
shall
22
toll
the
carryforward
provisions
of
subsection
9,
paragraph
23
“e”
,
for
any
worker
exercising
forbearance
or
deferment
24
provisions.
25
13.
a.
The
commission,
in
consultation
with
the
department
26
of
revenue,
shall
adopt
rules
pursuant
to
chapter
17A
for
the
27
implementation
and
administration
of
the
program.
28
b.
The
department
of
revenue,
in
consultation
with
the
29
commission,
may
adopt
rules
pursuant
to
chapter
17A
for
the
30
implementation
and
administration
of
subsections
9
through
12.
31
Sec.
2.
NEW
SECTION
.
422.11R
Technology
workers
tax
credit.
32
The
taxes
imposed
under
this
division,
less
the
credits
33
allowed
under
section
422.12,
shall
be
reduced
by
a
technology
34
workers
tax
credit
authorized
pursuant
to
section
261.114.
35
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_____
Sec.
3.
Section
422.33,
Code
2013,
is
amended
by
adding
the
1
following
new
subsection:
2
NEW
SUBSECTION
.
30.
The
taxes
imposed
under
this
division
3
shall
be
reduced
by
a
technology
workers
tax
credit
authorized
4
pursuant
to
section
261.114.
5
Sec.
4.
Section
422.60,
Code
2013,
is
amended
by
adding
the
6
following
new
subsection:
7
NEW
SUBSECTION
.
12.
The
taxes
imposed
under
this
division
8
shall
be
reduced
by
a
technology
workers
tax
credit
authorized
9
pursuant
to
section
261.114.
10
Sec.
5.
NEW
SECTION
.
432.12N
Technology
workers
tax
credit.
11
The
taxes
imposed
under
this
chapter
shall
be
reduced
by
a
12
technology
workers
tax
credit
authorized
pursuant
to
section
13
261.114.
14
Sec.
6.
Section
533.329,
subsection
2,
Code
2013,
is
amended
15
by
adding
the
following
new
paragraph:
16
NEW
PARAGRAPH
.
k.
The
moneys
and
credits
tax
imposed
under
17
this
section
shall
be
reduced
by
a
technology
workers
tax
18
credit
authorized
pursuant
to
section
261.114.
19
Sec.
7.
APPLICABILITY.
This
Act
applies
to
tax
years
20
beginning
on
or
after
January
1,
2014.
21
EXPLANATION
22
This
bill
provides
for
the
establishment
of
a
technology
23
workers
tax
credit
program
to
be
administered
by
the
college
24
student
aid
commission
and
the
department
of
revenue.
25
The
purpose
of
the
program
is
to
provide
a
tax
credit
to
26
eligible
technology
workers
or
to
provide
a
tax
credit
to
27
an
eligible
technology
worker’s
employer
for
payments
made
28
toward
the
qualified
student
debt.
For
purposes
of
the
bill,
29
“qualified
student
debt”
is
the
total
amount
of
principal
30
borrowed
by
the
eligible
technology
worker
to
attend
a
31
postsecondary
institution.
Only
those
loans
included
as
part
32
of
an
eligible
technology
worker’s
financial
aid
package
from
33
a
postsecondary
institution
may
be
included
in
the
amount
of
34
qualified
student
debt.
35
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_____
To
be
eligible
for
the
program,
a
technology
worker
must
be
1
or
become
an
Iowa
resident
and
remain
an
Iowa
resident
for
the
2
entirety
of
any
tax
year
in
which
the
technology
worker
seeks
3
to
claim
the
tax
credit
available
under
the
program.
The
bill
4
defines
a
“technology
worker”
for
purposes
of
the
bill
as
a
5
worker
who
is
employed
as
a
computer
and
information
scientist,
6
systems
analyst,
computer
programmer
or
developer,
or
computer
7
professional,
or
any
skilled
worker
who
performs
any
function
8
related
to
information
technology,
including
the
study,
9
design,
development,
implementation,
support,
or
management
of
10
computer-based
information
systems.
The
eligible
technology
11
worker
must
enter
into
an
agreement
with
the
college
student
12
aid
commission.
13
The
commission
is
required
to
coordinate
with
postsecondary
14
institutions,
technology
workers,
eligible
lenders,
and
the
15
department
of
revenue
in
the
administration
of
the
program.
16
Upon
entering
into
a
program
agreement,
the
commission
must
17
request
information
from
the
postsecondary
institution
in
18
which
the
technology
worker
was
enrolled
in
order
to
verify
19
that
the
technology
worker
was
enrolled
at
the
institution
20
and
to
certify
the
amount
of
qualified
student
debt.
Upon
21
receiving
this
information,
the
commission
must
issue
a
tax
22
credit
certificate
to
an
eligible
technology
worker.
If
the
23
commission
is
unable
to
verify
or
certify
the
information,
the
24
agreement
is
terminated.
25
The
technology
worker
may
claim
the
repayment
of
qualified
26
student
debt
as
a
credit
against
state
income
taxes
and
may
27
carry
the
credit
forward
for
up
to
five
years.
A
technology
28
worker
and
the
technology
worker’s
employer
may
receive
a
29
combined
maximum
tax
credit
amount
of
$1,000
a
year
for
up
to
30
five
years.
31
An
employer
may
claim
the
portion
of
the
credit
for
payments
32
made
directly
to
eligible
lenders
on
the
technology
worker’s
33
behalf
to
the
extent
that
such
payments
are
due
under
the
terms
34
of
the
loan
during
the
eligible
technology
worker’s
period
of
35
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8
S.F.
_____
employment
with
that
employer.
The
credit
is
not
refundable
1
or
transferable
and
may
not
be
carried
back
to
prior
tax
years
2
but
may
be
carried
forward
for
the
earlier
of
five
years
or
3
until
depleted.
The
credit
is
only
available
if
the
technology
4
worker
is
in
compliance
with
the
agreement
entered
into
with
5
the
college
student
aid
commission,
and
is
not
in
arrears
on
6
the
repayment
schedule
for
the
qualified
student
debt.
7
The
bill
provides
for
rulemaking
by
both
the
college
8
student
aid
commission
and
the
department
of
revenue
for
the
9
administration
of
the
program.
10
The
bill
applies
to
tax
years
beginning
on
or
after
January
11
1,
2014.
12
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