House
Study
Bill
63
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
SANDS)
A
BILL
FOR
An
Act
relating
to
the
Iowa
educational
savings
plan
trust
by
1
modifying
the
deduction
of
contributions
from
the
individual
2
income
tax
and
including
retroactive
applicability
3
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
422.7,
subsection
32,
paragraph
a,
Code
1
2015,
is
amended
to
read
as
follows:
2
a.
Subtract
the
maximum
contribution
that
may
be
deducted
3
for
Iowa
income
tax
purposes
as
a
participant
in
the
Iowa
4
educational
savings
plan
trust
pursuant
to
section
12D.3,
5
subsection
1
,
paragraph
“a”
.
For
purposes
of
this
paragraph,
6
a
participant
who
makes
a
contribution
on
or
before
the
7
date
prescribed
in
section
422.21
for
making
and
filing
an
8
individual
income
tax
return,
excluding
extensions,
may
elect
9
to
be
deemed
to
have
made
the
contribution
on
the
last
day
of
10
the
preceding
calendar
year.
The
director,
after
consultation
11
with
the
treasurer
of
state,
shall
prescribe
by
rule
the
12
manner
and
method
by
which
a
participant
may
make
an
election
13
authorized
by
the
preceding
sentence.
14
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
15
retroactively
to
January
1,
2015,
for
tax
years
beginning
on
16
or
after
that
date.
17
EXPLANATION
18
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
19
the
explanation’s
substance
by
the
members
of
the
general
assembly.
20
This
bill
relates
to
the
Iowa
educational
savings
plan
21
trust,
also
known
as
the
Iowa
college
savings
529
plan.
22
The
bill
amends
the
tax
year
for
which
a
contribution
to
23
the
trust
may
be
deducted
for
Iowa
income
tax
purposes.
Under
24
current
law,
a
contribution
to
the
trust
must
be
made
during
25
the
calendar
year
in
order
to
be
deductible
for
Iowa
income
26
tax
purposes
for
that
tax
year.
The
bill
allows
a
participant
27
who
makes
a
contribution
to
the
trust
on
or
before
the
Iowa
28
income
tax
return
filing
deadline
(April
30
for
calendar
year
29
tax
filers),
excluding
extensions,
to
elect
to
have
that
30
contribution
treated
as
though
it
was
made
on
the
last
day
of
31
the
preceding
calendar
year,
thereby
allowing
the
participant
32
to
claim
the
income
tax
deduction
for
the
most
recently
33
completed
tax
year.
The
bill
requires
the
director
of
revenue,
34
after
consultation
with
the
treasurer
of
state,
to
prescribe
by
35
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_____
rule
the
manner
and
method
by
which
a
participant
may
make
this
1
election.
The
bill
applies
retroactively
to
January
1,
2015,
2
for
tax
years
beginning
on
or
after
that
date.
3
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