Text: SF02002 Text: SF02004 Text: SF02000 - SF02099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.7, Code Supplement 2003, is amended
1 2 by adding the following new subsection:
1 3 NEW SUBSECTION. 32A. a. Subtract contributions made by
1 4 the taxpayer as a participant in a qualified tuition program,
1 5 as defined in section 529(b) of the Internal Revenue Code,
1 6 established by one or more eligible educational institutions.
1 7 The maximum amount that may be subtracted under this paragraph
1 8 equals the maximum amount that is deductible under section
1 9 12D.3, subsection 1, paragraph "a", for contributions made to
1 10 the Iowa educational savings plan trust minus any amount
1 11 subtracted pursuant to subsection 32, paragraph "a", of this
1 12 section.
1 13 b. Add the amount of cash refunds or withdrawals refunded
1 14 to the taxpayer as a participant in a qualified tuition
1 15 program that is not used to satisfy qualified higher education
1 16 expenses, as defined in section 529(e) of the Internal Revenue
1 17 Code, to the extent previously deducted under paragraph "a".
1 18 Sec. 2. EFFECTIVE AND RETROACTIVE DATE. This Act, being
1 19 deemed of immediate importance, takes effect upon enactment
1 20 and applies retroactively to January 1, 2004, for tax years
1 21 beginning on or after that date.
1 22 EXPLANATION
1 23 This bill allows for an individual income tax deduction for
1 24 contributions made to a qualified tuition program established
1 25 by one or more educational institutions. The program is the
1 26 counterpart to the Iowa educational savings plan trust (state
1 27 program) and allows a taxpayer to make contributions to a
1 28 trust set up in the name of a designated beneficiary to pay
1 29 the costs associated with higher education. The amount that
1 30 may be deducted is the maximum amount that may be deducted for
1 31 contributions to the state program ($2,000, to be adjusted for
1 32 inflation) less any amount that has been deducted for the tax
1 33 year for contributions to the state program.
1 34 The bill also provides that any refunds or withdrawals made
1 35 which the taxpayer receives and which are not used for
2 1 qualified tuition costs are to be included in income to the
2 2 extent previously deducted.
2 3 The bill takes effect upon enactment and applies
2 4 retroactively to January 1, 2004, for tax years beginning on
2 5 or after that date.
2 6 LSB 5066XS 80
2 7 mg/sh/8
Text: SF02002 Text: SF02004 Text: SF02000 - SF02099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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