Text: SF00044 Text: SF00046 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.7, Code 2003, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 34A. For purposes of this subsection,
1 4 "out-of-state qualified state tuition program" or "program"
1 5 means a qualified state tuition program established in a state
1 6 other than Iowa which meets the requirements of section 529 of
1 7 the Internal Revenue Code.
1 8 a. Subtract the maximum contribution that may be deducted
1 9 for Iowa income tax purposes as a participant in the Iowa
1 10 educational savings plan trust pursuant to section 12D.3,
1 11 subsection 1, paragraph "a", for contributions made to an out-
1 12 of-state qualified state tuition program.
1 13 b. Add the amount resulting from the cancellation of a
1 14 participation agreement refunded to the taxpayer as a
1 15 participant in the out-of-state qualified state tuition
1 16 program to the extent previously deducted as a contribution to
1 17 the program.
1 18 c. Subtract, to the extent included, income from interest
1 19 and earnings received from the out-of-state qualified state
1 20 tuition program.
1 21 d. Subtract, to the extent not deducted for federal income
1 22 tax purposes, the amount of any gift, grant, or donation made
1 23 to the out-of-state qualified state tuition program for
1 24 deposit in the endowment fund, if any, of that program.
1 25 Sec. 2. EFFECTIVE AND APPLICABILITY DATES. This Act,
1 26 being deemed of immediate importance, takes effect upon
1 27 enactment and applies retroactively to January 1, 2003, for
1 28 tax years beginning on or after that date.
1 29 EXPLANATION
1 30 Under present law, contributions to, donations to, and
1 31 interest and earnings from the Iowa educational savings plan
1 32 trust are exempt from Iowa income tax. The Iowa educational
1 33 savings plan trust is a trust set up by the state for the
1 34 benefit of named beneficiaries to pay for educational costs
1 35 beyond high school. This bill treats the contributions to,
2 1 distributions to, and interest and earnings from such a trust
2 2 or program established by a state other than Iowa in the same
2 3 manner.
2 4 The bill takes effect upon enactment and applies
2 5 retroactively to January 1, 2003, for tax years beginning on
2 6 or after that date.
2 7 LSB 1383XS 80
2 8 mg/cls/14
Text: SF00044 Text: SF00046 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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