Senate File 2303 PAG LIN 1 1 SENATE FILE 2303 1 2 1 3 AN ACT 1 4 PROVIDING FOR AN INDIVIDUAL INCOME TAX DEDUCTION FOR CONTRI= 1 5 BUTIONS MADE TO A QUALIFIED TUITION PROGRAM ESTABLISHED BY 1 6 CERTAIN EDUCATIONAL INSTITUTIONS AND INCLUDING EFFECTIVE 1 7 AND RETROACTIVE APPLICABILITY DATE PROVISIONS. 1 8 1 9 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 10 1 11 Section 1. Section 422.7, Code Supplement 2003, is amended 1 12 by adding the following new subsection: 1 13 NEW SUBSECTION. 32A. a. Subtract contributions made by 1 14 the taxpayer as a participant in a qualified tuition program, 1 15 as defined in section 529(b) of the Internal Revenue Code, 1 16 established by one or more eligible educational institutions. 1 17 The maximum amount that may be subtracted under this paragraph 1 18 equals the maximum amount that is deductible under section 1 19 12D.3, subsection 1, paragraph "a", for contributions made to 1 20 the Iowa educational savings plan trust minus any amount 1 21 subtracted pursuant to subsection 32, paragraph "a", of this 1 22 section. 1 23 b. Add the amount of cash refunds or withdrawals refunded 1 24 to the taxpayer as a participant in a qualified tuition 1 25 program that is not used to satisfy qualified higher education 1 26 expenses, as defined in section 529(e) of the Internal Revenue 1 27 Code, to the extent previously deducted under paragraph "a". 1 28 Sec. 2. EFFECTIVE AND RETROACTIVE DATE. This Act, being 1 29 deemed of immediate importance, takes effect upon enactment 1 30 and applies retroactively to January 1, 2004, for tax years 1 31 beginning on or after that date. 1 32 1 33 1 34 1 35 JEFFREY M. LAMBERTI 2 1 President of the Senate 2 2 2 3 2 4 2 5 CHRISTOPHER C. RANTS 2 6 Speaker of the House 2 7 2 8 I hereby certify that this bill originated in the Senate and 2 9 is known as Senate File 2303, Eightieth General Assembly. 2 10 2 11 2 12 2 13 MICHAEL E. MARSHALL 2 14 Secretary of the Senate 2 15 Approved , 2004 2 16 2 17 2 18 2 19 THOMAS J. VILSACK 2 20 Governor