S.F. 2301 Section 1. Section 12D.1, subsection 2, paragraphs e and g, 1 Code 2016, are amended by striking the paragraphs and inserting 2 in lieu thereof the following: 3 e. “Higher education costs” means the same as “qualified 4 higher education expenses” as defined in section 529(e)(3) of 5 the Internal Revenue Code. 6 g. “Internal Revenue Code” means the same as defined in 7 section 12I.1. 8 Sec. 2. Section 12D.1, subsection 2, paragraph i, Code 2016, 9 is amended to read as follows: 10 i. “Participant” means an individual, individual’s legal 11 representative, trust, or estate , or an organization described 12 in section 501(c)(3) of the Internal Revenue Code and exempt 13 from taxation under section 501(a) of the Internal Revenue 14 Code, that has entered into a participation agreement under 15 this chapter for the advance payment of higher education costs 16 on behalf of a beneficiary. 17 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 18 immediate importance, takes effect upon enactment. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 This bill relates to the Iowa educational savings plan 23 trust, also known as the Iowa college savings 529 plan. 24 The bill adds tax-exempt, Internal Revenue Code §501(c)(3) 25 nonprofit organizations as entities eligible to participate in 26 the Iowa college savings 529 plan. These organizations will 27 now be eligible to open accounts for individual beneficiaries 28 and make contributions for the future payment of higher 29 education costs on behalf of those beneficiaries. The bill 30 also amends the definition of “higher education costs” and 31 “Internal Revenue Code” under the Iowa college savings 529 32 plan. 33 The bill takes effect upon enactment. 34 -1- LSB 5838SV (2) 86 mm/sc 1/ 1