S.F. 292 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 -1- LSB 1960SV (1) 85 ad/sc 1/ 8

S.F. 292 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 -2- LSB 1960SV (1) 85 ad/sc 2/ 8

S.F. 292 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 1960SV (1) 85 ad/sc 3/ 8

S.F. 292 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 -4- LSB 1960SV (1) 85 ad/sc 4/ 8

S.F. 292 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 -5- LSB 1960SV (1) 85 ad/sc 5/ 8

S.F. 292 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 -6- LSB 1960SV (1) 85 ad/sc 6/ 8

S.F. 292 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 -7- LSB 1960SV (1) 85 ad/sc 7/ 8

S.F. 292 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 -8- LSB 1960SV (1) 85 ad/sc 8/ 8