Bill Text: IA SSB1208 | 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.(See SF 572.)
Spectrum: Committee Bill
Status: (Introduced) 2023-04-24 - Committee report approving bill, renumbered as SF 572. [SSB1208 Detail]
Download: Iowa-2023-SSB1208-Introduced.html
Senate
Study
Bill
1208
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
DAWSON)
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
TLSB
2542XC
(3)
90
md/jh
S.F.
_____
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,
Code
29
2023,
is
amended
by
adding
the
following
new
subparagraph:
30
NEW
SUBPARAGRAPH
.
(05)
For
eligible
students
participating
31
in
the
education
savings
account
program
under
section
257.11B,
32
as
enacted
by
2023
Iowa
Acts,
House
File
68,
section
7,
only
33
provides
tuition
grants
in
amounts
not
to
exceed
the
tuition
34
amount
for
which
the
parent
or
guardian
is
responsible
for
35
-1-
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_____
payment
following
application
of
amounts
paid
using
moneys
from
1
the
student’s
account
in
the
education
savings
account
fund.
2
Sec.
5.
Section
422.11S,
subsection
8,
paragraph
a,
3
subparagraph
(2),
Code
2023,
is
amended
to
read
as
follows:
4
(2)
“Total
approved
tax
credits”
means
for
the
2006
calendar
5
year,
two
million
five
hundred
thousand
dollars,
for
the
6
2007
calendar
year,
five
million
dollars,
for
calendar
years
7
beginning
on
or
after
January
1,
2008,
but
before
January
1,
8
2012,
seven
million
five
hundred
thousand
dollars,
for
calendar
9
years
beginning
on
or
after
January
1,
2012,
but
before
January
10
1,
2014,
eight
million
seven
hundred
fifty
thousand
dollars,
11
for
calendar
years
beginning
on
or
after
January
1,
2014,
but
12
before
January
1,
2019,
twelve
million
dollars,
for
calendar
13
years
beginning
on
or
after
January
1,
2019,
but
before
14
January
1,
2020,
thirteen
million
dollars,
for
calendar
years
15
beginning
on
or
after
January
1,
2020,
but
before
January
16
1,
2022,
fifteen
million
dollars,
and
for
calendar
years
17
beginning
on
or
after
January
1,
2022,
but
before
January
1,
18
2024,
twenty
million
dollars
,
for
the
calendar
year
beginning
19
January
1,
2024,
seventeen
million
dollars,
and
for
calendar
20
years
beginning
on
or
after
January
1,
2025,
fourteen
million
21
dollars
.
22
Sec.
6.
APPLICABILITY.
The
section
of
this
division
of
23
this
Act
amending
section
422.11S,
subsection
6,
paragraph
“c”,
24
applies
to
tuition
grants
made
for
school
years
beginning
on
25
or
after
July
1,
2023.
26
DIVISION
III
27
EDUCATION
SAVINGS
ACCOUNTS
——
ADMINISTRATION
OF
FUNDS
28
Sec.
7.
Section
257.11B,
subsection
6,
paragraph
c,
as
29
enacted
by
2023
Iowa
Acts,
House
File
68,
section
7,
is
amended
30
to
read
as
follows:
31
c.
Moneys
remaining
in
a
pupil’s
individual
account
upon
32
conclusion
of
the
fiscal
year
shall
remain
in
the
pupil’s
33
individual
account
for
the
payment
of
qualified
educational
34
expenses
in
future
consecutive
fiscal
years
during
which
the
35
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pupil
participates
in
the
program
until
the
pupil
becomes
1
ineligible
under
the
program
or
until
the
remaining
amounts
are
2
transferred
to
the
state
general
fund
under
subsection
8.
If
3
moneys
remain
in
a
pupil’s
individual
account
upon
conclusion
4
of
the
fiscal
year
and
the
pupil
does
not
participate
in
the
5
program
during
the
immediately
succeeding
fiscal
year,
the
6
department
of
education
or
third-party
entity
shall
close
the
7
pupil’s
account
in
the
fund,
and
transfer
any
remaining
moneys
8
in
the
account
for
deposit
in
the
general
fund
of
the
state.
9
Sec.
8.
Section
257.11B,
subsection
7,
as
enacted
by
2023
10
Iowa
Acts,
House
File
68,
section
7,
is
amended
to
read
as
11
follows:
12
7.
a.
A
person
who
makes
a
false
claim
for
the
purpose
of
13
obtaining
an
education
savings
account
payment
or
who
knowingly
14
receives
the
payment
or
makes
a
payment
from
an
individual
15
account
within
the
fund
without
being
legally
entitled
to
do
16
so
is
guilty
of
a
fraudulent
practice
under
chapter
714.
The
17
false
claim
for
an
education
savings
account
or
a
payment
from
18
an
individual
account
shall
be
disallowed.
The
department
of
19
education
or
third-party
entity
shall
also
close
the
pupil’s
20
individual
account
in
the
fund
and
transfer
any
remaining
21
moneys
in
the
account
for
deposit
in
the
general
fund
of
the
22
state.
If
the
improperly
obtained
amounts
have
been
disbursed
23
from
the
applicable
individual
account,
the
department
of
24
education
or
third-party
entity
shall
recover
such
amounts
25
from
the
parent
or
guardian,
including
by
initiating
legal
26
proceedings
to
recover
such
amounts,
if
necessary.
A
parent
or
27
guardian
who
commits
a
fraudulent
practice
under
this
section
28
is
prohibited
from
participating
in
the
education
savings
29
account
program
in
the
future.
30
b.
(1)
If,
prior
to
the
end
of
the
required
attendance
31
period
of
the
school
year,
a
pupil
who
receives
an
education
32
savings
account
payment
withdraws
from
enrollment
in
the
33
nonpublic
school
or
is
expelled,
the
nonpublic
school
shall
34
notify
the
department
of
education
or
third-party
entity
in
35
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_____
writing
of
the
pupil’s
withdrawal
or
expulsion.
1
(2)
Upon
receipt
of
a
notice
of
expulsion,
the
department
2
of
education
or
third-party
entity
shall
cease
disbursements
3
of
remaining
moneys
in
the
pupil’s
account,
close
the
pupil’s
4
account
in
the
fund,
and
transfer
any
remaining
moneys
in
the
5
account
for
deposit
in
the
general
fund
of
the
state.
6
(3)
Upon
receipt
of
a
notice
of
withdrawal
and
a
7
determination
that
the
pupil
did
not
enroll
in
a
different
8
nonpublic
school
in
this
state
for
the
remainder
of
the
school
9
year,
the
department
of
education
or
third-party
entity
shall
10
cease
disbursements
of
remaining
moneys
in
the
pupil’s
account
11
in
the
fund,
close
the
pupil’s
account,
and
transfer
any
moneys
12
remaining
in
the
pupil’s
account
for
deposit
in
the
general
13
fund
of
the
state.
14
Sec.
9.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
15
deemed
of
immediate
importance,
takes
effect
upon
enactment.
16
Sec.
10.
RETROACTIVE
APPLICABILITY.
This
division
of
this
17
Act
applies
retroactively
to
January
24,
2023.
18
DIVISION
IV
19
NONPUBLIC
SCHOOL
PUPIL
TEXTBOOK
SERVICES
20
Sec.
11.
Section
301.1,
subsections
2
and
3,
Code
2023,
are
21
amended
by
striking
the
subsections.
22
Sec.
12.
EFFECTIVE
DATE.
This
division
of
this
Act
takes
23
effect
July
1,
2025.
24
DIVISION
V
25
EDUCATION
SAVINGS
ACCOUNTS
——
CORRECTIONS
26
Sec.
13.
Section
257.11B,
subsection
2,
paragraph
a,
27
subparagraph
(1),
subparagraph
division
(c),
as
enacted
by
2023
28
Iowa
Acts,
House
File
68,
section
7,
is
amended
to
read
as
29
follows:
30
(c)
A
resident
pupil
who
is
eligible
to
enroll
in
grades
one
31
through
twelve
and
was
enrolled
in
a
nonpublic
school
for
the
32
school
year
immediately
preceding
the
school
year
for
which
the
33
education
savings
account
payment
is
requested
if
the
pupil’s
34
household
has
an
annual
income
less
than
or
equal
to
three
35
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hundred
percent
of
the
most
recently
revised
poverty
income
1
guidelines
published
by
the
United
States
department
of
health
2
and
human
services.
3
Sec.
14.
Section
257.46,
subsection
3,
Code
2023,
as
amended
4
by
2023
Iowa
Acts,
House
File
68,
section
16,
is
amended
to
5
read
as
follows:
6
3.
If
any
portion
of
the
gifted
and
talented
program
budget
7
remains
unexpended
at
the
end
of
the
budget
year,
the
remainder
8
shall
be
carried
over
to
the
subsequent
budget
year
and
added
9
to
the
gifted
and
talented
program
budget
for
that
year.
At
10
the
end
of
a
fiscal
year
beginning
on
or
after
July
1,
2022,
11
the
school
district
may
use
all
or
a
portion
of
funds
for
12
the
purposes
authorized
under
section
257.10,
subsection
9,
13
paragraph
“d”
.
14
Sec.
15.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
15
deemed
of
immediate
importance,
takes
effect
upon
enactment.
16
Sec.
16.
RETROACTIVE
APPLICABILITY.
This
division
of
this
17
Act
applies
retroactively
to
January
24,
2023.
18
EXPLANATION
19
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
20
the
explanation’s
substance
by
the
members
of
the
general
assembly.
21
This
bill
relates
to
certain
education
programs
and
tax
22
credits.
23
DIVISION
I
——
TUITION
AND
TEXTBOOK
TAX
CREDIT.
Code
section
24
422.12(2)(b)
provides
an
income
tax
tuition
credit
equal
to
25
25
percent
of
the
first
$2,000
which
the
taxpayer
has
paid
to
26
others
for
each
dependent
in
grades
kindergarten
through
12,
27
for
tuition
and
textbooks
of
each
dependent
who
is
receiving
28
private
instruction
or
who
is
attending
an
elementary
or
29
secondary
school
situated
in
Iowa
meeting
certain
criteria.
30
The
bill
specifies
that
amounts
paid
from
an
account
in
the
31
education
savings
account
fund
under
Code
section
257.11B,
as
32
enacted
by
2023
Iowa
Acts,
House
File
68,
shall
not
be
eligible
33
for
the
credit.
34
Division
I
takes
effect
upon
enactment
and
applies
35
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retroactively
to
tax
years
beginning
on
or
after
January
1,
1
2023.
2
DIVISION
II
——
SCHOOL
TUITION
ORGANIZATION
GRANTS.
3
Code
sections
422.11S
and
422.33
provide
a
school
tuition
4
organization
tax
credit
against
the
individual
income
tax
5
and
corporate
income
tax,
respectively,
for
contributions
6
made
by
the
taxpayer
during
the
tax
year
to
a
school
tuition
7
organization.
The
bill
adds
a
requirement
to
the
criteria
for
8
a
school
tuition
organization
by
specifying
that
for
eligible
9
students
participating
in
the
education
savings
account
program
10
under
Code
section
257.11B,
the
organization
only
provides
11
tuition
grants
in
amounts
not
to
exceed
the
tuition
amount
12
for
which
the
parent
or
guardian
is
responsible
for
payment
13
following
application
of
amounts
paid
using
moneys
from
the
14
student’s
account
in
the
education
savings
account
fund.
This
15
provision
applies
to
tuition
grants
made
for
school
years
16
beginning
on
or
after
July
1,
2023.
17
The
bill
also
reduces
the
total
annual
amount
of
available
18
school
tuition
organization
tax
credits
for
the
calendar
year
19
beginning
January
1,
2024,
from
$20
million
to
$17
million,
and
20
to
$14
million
for
calendar
years
beginning
on
or
after
January
21
1,
2025.
22
DIVISION
III
——
EDUCATION
SAVINGS
ACCOUNTS
——
ADMINISTRATION
23
OF
FUNDS.
Code
section
257.11B,
as
enacted
by
2023
Iowa
Acts,
24
House
File
68,
section
7,
specifies
that
moneys
remaining
in
a
25
pupil’s
individual
account
upon
conclusion
of
the
fiscal
year
26
shall
remain
in
the
pupil’s
individual
account
for
the
payment
27
of
qualified
educational
expenses
in
future
fiscal
years
during
28
which
the
pupil
participates
in
the
program
until
the
pupil
29
becomes
ineligible
under
the
program
or
until
the
remaining
30
amounts
are
transferred
to
the
state
general
fund
as
required
31
in
that
Code
section.
The
bill
provides
that
such
remaining
32
moneys
are
available
for
future
consecutive
fiscal
years
during
33
which
the
pupil
participates
in
the
program.
The
bill
further
34
provides
that
if
moneys
remain
in
a
pupil’s
individual
account
35
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upon
conclusion
of
the
fiscal
year
and
the
pupil
does
not
1
participate
in
the
program
during
the
immediately
succeeding
2
fiscal
year,
the
department
of
education
or
third-party
entity
3
shall
close
the
pupil’s
account
in
the
fund,
and
transfer
any
4
remaining
moneys
in
the
account
for
deposit
in
the
general
fund
5
of
the
state.
6
The
bill
also
amends
the
education
savings
account
program
7
under
Code
section
257.11B
by
providing
that
if,
prior
to
the
8
end
of
the
required
attendance
period
of
the
school
year,
9
a
pupil
who
receives
an
education
savings
account
payment
10
withdraws
from
enrollment
in
the
nonpublic
school
or
is
11
expelled,
the
nonpublic
school
shall
notify
the
department
12
of
education
or
third-party
entity
in
writing
of
the
pupil’s
13
withdrawal
or
expulsion.
Under
the
bill,
upon
receipt
of
a
14
notice
of
expulsion,
the
department
of
education
or
third-party
15
entity
shall
cease
disbursements
of
remaining
moneys
in
the
16
pupil’s
account,
close
the
pupil’s
account
in
the
fund,
and
17
transfer
any
remaining
moneys
in
the
account
for
deposit
in
18
the
general
fund
of
the
state.
Additionally,
upon
receipt
of
19
a
notice
of
withdrawal
and
a
determination
that
the
pupil
did
20
not
enroll
in
a
different
nonpublic
school
in
this
state
for
21
the
remainder
of
the
school
year,
the
department
of
education
22
or
third-party
entity
shall
cease
disbursements
of
remaining
23
moneys
in
the
pupil’s
account
in
the
fund,
close
the
pupil’s
24
account,
and
transfer
any
moneys
remaining
in
the
pupil’s
25
account
for
deposit
in
the
general
fund
of
the
state.
26
Division
III
takes
effect
upon
enactment
and
applies
27
retroactively
to
January
24,
2023.
28
DIVISION
IV
——
NONPUBLIC
SCHOOL
PUPIL
TEXTBOOK
SERVICES.
29
Code
section
301.1
authorizes
each
school
board
to
adopt
30
textbooks
for
the
district,
and
to
contract
for
and
buy
such
31
books
and
any
and
all
other
necessary
school
supplies
at
32
contract
prices,
and
to
sell
them
to
the
pupils
of
their
33
respective
districts
at
cost,
loan
such
textbooks
to
such
34
pupils
free,
or
rent
them
to
pupils.
In
addition,
Code
section
35
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_____
301.1,
subsections
2
and
3,
provides
that
textbooks
adopted
1
and
purchased
by
a
school
district
shall,
to
the
extent
funds
2
are
appropriated
by
the
general
assembly,
be
made
available
to
3
pupils
attending
accredited
nonpublic
schools
upon
request
of
4
the
pupil
or
the
pupil’s
parent
under
comparable
terms
as
made
5
available
to
pupils
attending
public
schools.
The
bill
strikes
6
those
subsections
of
Code
section
301.1
relating
to
a
school
7
district
making
such
textbooks
available
to
pupils
attending
8
nonpublic
schools.
9
Division
IV
takes
effect
July
1,
2025.
10
DIVISION
V
——
EDUCATION
SAVINGS
ACCOUNTS
——
CORRECTIONS.
11
Division
V
corrects
errors
and
omissions
in
Code
section
12
257.11B,
as
enacted
by
2023
Iowa
Acts,
House
File
68,
section
13
7.
14
Division
V
takes
effect
upon
enactment
and
applies
15
retroactively
to
January
24,
2023.
16
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