Senate File 490 - Introduced SENATE FILE 490 BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO SF 439) (SUCCESSOR TO SSB 1210) A BILL FOR An Act creating an Iowa ABLE savings plan trust, providing for 1 participation in another state’s qualified ABLE program, 2 providing deductions and exclusions from the individual 3 income tax and inheritance tax relating to the trust or 4 program, and including implementation and applicability 5 provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 7 TLSB 1660SZ (2) 86 mm/sc

S.F. 490 Section 1. NEW SECTION . 12I.1 Purpose and definitions. 1 1. The general assembly finds that the general welfare 2 and well-being of the state are directly related to the 3 health, maintenance, independence, and quality of life of its 4 disabled residents, and that a vital and valid public purpose 5 is served by the creation and implementation of programs that 6 encourage and make possible savings to secure funding for 7 disability-related expenses on behalf of individuals with 8 disabilities that will supplement, but not supplant, other 9 benefits provided by various federal, state, and private 10 sources. The creation of the means of encouragement for 11 citizens to invest in such a program represents the carrying 12 out of a vital and valid public purpose. In order to make 13 available to the citizens of the state an opportunity to fund 14 future disability-related expenses of individuals, it is 15 necessary that a public trust be established in which moneys 16 may be invested for payment of future disability-related 17 expenses of an individual. 18 2. As used in this chapter, unless the context otherwise 19 requires: 20 a. “Account balance limit” means the maximum allowable 21 aggregate balance of an account established for a designated 22 beneficiary. Account earnings, if any, are included in the 23 account balance limit. 24 b. “Account owner” means an individual who enters into a 25 participation agreement under this chapter for the payment 26 of qualified disability expenses on behalf of a designated 27 beneficiary. 28 c. “Contracting state” means the same as defined in section 29 529A of the Internal Revenue Code. 30 d. “Designated beneficiary” means an individual who is a 31 resident of this state or a resident of a contracting state and 32 who meets the definition of “eligible individual” in section 33 529A of the Internal Revenue Code. 34 e. “Internal Revenue Code” means the Internal Revenue Code 35 -1- LSB 1660SZ (2) 86 mm/sc 1/ 14

S.F. 490 of 1986, as amended, and regulations promulgated thereunder. 1 f. “Iowa ABLE savings plan trust” or “trust” means the trust 2 created under section 12I.2. 3 g. “Participation agreement” means an agreement between the 4 account owner and the trust entered into under this chapter. 5 h. “Qualified ABLE program ” means the same as defined in 6 section 529A of the Internal Revenue Code. 7 i. “Qualified disability expenses” means the same as defined 8 in section 529A of the Internal Revenue Code. 9 j. “Resident” shall be defined by rules adopted by the 10 treasurer of state. The rules shall determine residency in 11 such manner as may be required or permitted under section 12 529A of the Internal Revenue Code, or, in the absence of any 13 guidance under federal law, as the treasurer of state deems 14 advisable for the purpose of satisfying the requirements of 15 section 529A of the Internal Revenue Code. 16 Sec. 2. NEW SECTION . 12I.2 Creation of Iowa ABLE savings 17 plan trust. 18 An Iowa ABLE savings plan trust is created. The treasurer of 19 state is the trustee of the trust, and has all powers necessary 20 to carry out and effectuate the purposes, objectives, and 21 provisions of this chapter pertaining to the trust, including 22 the power to do all of the following: 23 1. Make and enter into contracts necessary for the 24 administration of the trust created under this chapter. 25 2. Enter into agreements with this state or any other 26 state, or any federal or other state agency, or other entity as 27 required to implement this chapter. 28 3. Carry out the duties and obligations of the trust 29 pursuant to this chapter. 30 4. Accept any grants, gifts, legislative appropriations, 31 and other moneys from the state, any unit of federal, state, or 32 local government, or any other person, firm, partnership, or 33 corporation which the treasurer of state shall deposit into the 34 administrative fund or program fund. 35 -2- LSB 1660SZ (2) 86 mm/sc 2/ 14

S.F. 490 5. Participate in any federal, state, or local governmental 1 program for the benefit of the trust. 2 6. Procure insurance against any loss in connection with the 3 property, assets, or activities of the trust. 4 7. Enter into participation agreements with account owners. 5 8. Make payments to designated beneficiaries pursuant to 6 participation agreements. 7 9. Make refunds to account owners upon the termination 8 of participation agreements, and partial nonqualified 9 distributions to account owners, pursuant to this chapter and 10 the limitations and restrictions set forth in this chapter. 11 10. Invest moneys from the program fund in any investments 12 that are determined by the treasurer of state to be 13 appropriate. 14 11. Engage investment advisors, if necessary, to assist in 15 the investment of trust assets. 16 12. Contract for goods and services and engage personnel 17 as necessary, including consultants, actuaries, managers, 18 legal counsel, and auditors for the purpose of rendering 19 professional, managerial, and technical assistance and advice 20 to the treasurer of state regarding trust administration and 21 operation. 22 13. Establish, impose, and collect administrative fees 23 and charges in connection with transactions of the trust, and 24 provide for reasonable service charges, including penalties for 25 cancellations and late payments with respect to participation 26 agreements. 27 14. Administer the funds of the trust. 28 15. Prepare and file reports and notices. 29 16. Enter into agreements with contracting states to permit 30 residents of the contracting state to participate in the Iowa 31 ABLE savings plan trust. 32 17. Adopt rules pursuant to chapter 17A for the 33 administration of this chapter. 34 Sec. 3. NEW SECTION . 12I.3 Participation agreements for 35 -3- LSB 1660SZ (2) 86 mm/sc 3/ 14

S.F. 490 trust. 1 The trust may enter into participation agreements with 2 account owners pursuant to the following terms and agreements: 3 1. a. Unless otherwise permitted under section 529A of the 4 Internal Revenue Code, the treasurer of state shall allow only 5 one participation agreement per designated beneficiary. 6 b. Unless otherwise permitted under section 529A of the 7 Internal Revenue Code, the account owner must also be the 8 designated beneficiary of the account. However, a trustee or 9 legal guardian may be designated as custodian of an account for 10 a designated beneficiary who is a minor or who lacks capacity 11 to enter into a participation agreement if such designation is 12 not prohibited under section 529A of the Internal Revenue Code. 13 c. The treasurer of state shall set an annual contribution 14 limit and account balance limit to maintain compliance with 15 section 529A of the Internal Revenue Code. A contribution 16 shall not be permitted to the extent it exceeds the annual 17 contribution limit or causes the aggregate balance of the 18 account established for the designated beneficiary to exceed 19 the applicable account balance limit. 20 d. The maximum amount that may be deducted for Iowa income 21 tax purposes shall not exceed the maximum deductible amount 22 determined for the year pursuant to section 12D.3, subsection 23 1, paragraph “a” . This maximum amount applies per designated 24 beneficiary that is a resident of this state per year. 25 e. Participation agreements may be amended to provide 26 for adjusted levels of contributions based upon changed 27 circumstances or changes in disability-related expenses. 28 f. Any person may make contributions pursuant to a 29 participation agreement on behalf of a designated beneficiary 30 under rules adopted by the treasurer of state. 31 2. The execution of a participation agreement by the trust 32 shall not guarantee in any way that future disability-related 33 expenses will be equal to projections and estimates provided by 34 the trust or that the account owner or designated beneficiary 35 -4- LSB 1660SZ (2) 86 mm/sc 4/ 14

S.F. 490 is guaranteed any of the following: 1 a. A return of principal. 2 b. A rate of interest or other return from the trust. 3 c. Payment of interest or other return from the trust. 4 3. a. A designated beneficiary under a participation 5 agreement may be changed as permitted under rules adopted by 6 the treasurer of state upon written request of the account 7 owner as long as such change would be permitted by section 529A 8 of the Internal Revenue Code. 9 b. Participation agreements may otherwise be freely amended 10 throughout their terms in order to enable account owners to 11 increase or decrease the level of participation, change the 12 designated beneficiary, and carry out similar matters as 13 authorized by rule. 14 4. Each participation agreement shall provide that the 15 participation agreement may be canceled upon the terms and 16 conditions, and upon payment of applicable fees and costs set 17 forth and contained in the rules adopted by the treasurer of 18 state. 19 Sec. 4. NEW SECTION . 12I.4 Program and administrative funds 20 —— investment and payment. 21 1. a. The treasurer of state shall segregate moneys 22 received by the trust into two funds: the program fund and the 23 administrative fund. 24 b. All moneys paid by account owners or other persons 25 on behalf of a designated beneficiary in connection with 26 participation agreements shall be deposited as received into 27 separate accounts for each designated beneficiary within the 28 program fund. 29 c. Contributions to the trust made on behalf of designated 30 beneficiaries may only be made in the form of cash. 31 d. An account owner or designated beneficiary is 32 not permitted to provide investment direction regarding 33 contributions or earnings held by the trust. 34 2. Moneys accrued by account owners in the program fund 35 -5- LSB 1660SZ (2) 86 mm/sc 5/ 14

S.F. 490 of the trust may be used for payments of qualified disability 1 expenses. 2 3. Moneys in the account of a designated beneficiary may 3 be claimed by the Iowa Medicaid program as provided in section 4 529A(f) of the Internal Revenue Code and subject to limitations 5 imposed by the treasurer of state. 6 4. The trust shall comply with Pub. L. No. 113-295, §103, 7 regarding treatment of ABLE accounts under certain federal 8 programs. 9 Sec. 5. NEW SECTION . 12I.5 Cancellation of agreements. 10 An account owner may cancel a participation agreement at 11 will. Upon cancellation of a participation agreement, an 12 account owner shall be entitled to the return of the account 13 owner’s account balance. 14 Sec. 6. NEW SECTION . 12I.6 Repayment and ownership of 15 payments and investment income —— transfer of ownership rights. 16 1. a. An account owner retains ownership of all 17 contributions made on behalf of a designated beneficiary under 18 a participation agreement up to the date of utilization for 19 payment of qualified disability expenses of the designated 20 beneficiary. 21 b. All income derived from the investment of the 22 contributions made on behalf of a designated beneficiary shall 23 be considered to be held in trust for the benefit of the 24 designated beneficiary. 25 2. In the event the trust is terminated prior to payment of 26 qualified disability expenses for the designated beneficiary, 27 the account owner is entitled to a refund of the account 28 owner’s account balance. 29 3. Any amounts which may be paid to any person or persons 30 pursuant to the Iowa ABLE savings plan trust but which are not 31 listed in this section are owned by the trust. 32 4. An account owner may transfer ownership rights to 33 another designated beneficiary, including a gift of the 34 ownership rights to a designated beneficiary who is a minor, in 35 -6- LSB 1660SZ (2) 86 mm/sc 6/ 14

S.F. 490 accordance with rules adopted by the treasurer of state and the 1 terms of the participation agreement, so long as the transfer 2 would be permitted by section 529A of the Internal Revenue 3 Code. 4 5. An account owner or designated beneficiary shall not be 5 entitled to utilize any interest in the trust as security for 6 a loan. 7 Sec. 7. NEW SECTION . 12I.7 Reports —— annual audited 8 financial report —— reports under federal law. 9 1. a. The treasurer of state shall submit an annual 10 audited financial report, prepared in accordance with generally 11 accepted accounting principles, on the operations of the trust 12 by November 1 to the governor and the general assembly. 13 b. The annual audit shall be made either by the auditor 14 of state or by an independent certified public accountant 15 designated by the auditor of state and shall include direct and 16 indirect costs attributable to the use of outside consultants, 17 independent contractors, and any other persons who are not 18 state employees. 19 2. The annual audit shall be supplemented by all of the 20 following information prepared by the treasurer of state: 21 a. Any related studies or evaluations prepared in the 22 preceding year. 23 b. A summary of the benefits provided by the trust, 24 including the number of account owners and designated 25 beneficiaries in the trust, or, if the trust has caused this 26 state to become a contracting state pursuant to section 12I.10, 27 a summary of the benefits provided to Iowa residents by the 28 contracted qualified ABLE program, including the number of 29 account owners and designated beneficiaries in the contracted 30 qualified ABLE program who are Iowa residents. 31 c. Any other information deemed relevant by the treasurer of 32 state in order to make a full, fair, and effective disclosure 33 of the operations of the trust or the contracted qualified ABLE 34 program if applicable. 35 -7- LSB 1660SZ (2) 86 mm/sc 7/ 14

S.F. 490 3. The treasurer of state shall prepare and submit to the 1 secretary of the United States treasury or other required party 2 any reports, notices, or statements required under section 529A 3 of the Internal Revenue Code. 4 Sec. 8. NEW SECTION . 12I.8 Tax considerations. 5 1. For federal income tax purposes, the Iowa ABLE savings 6 plan trust shall be considered a qualified ABLE program exempt 7 from taxation pursuant to section 529A of the Internal Revenue 8 Code and shall be operated so that it meets the requirements of 9 section 529A of the Internal Revenue Code. 10 2. State income tax treatment of the Iowa ABLE savings plan 11 trust shall be as provided in section 422.7, subsections 34 and 12 34A. 13 3. State inheritance tax treatment of interests in Iowa ABLE 14 savings plans shall be as provided in section 450.4, subsection 15 9. 16 Sec. 9. NEW SECTION . 12I.9 Property rights to assets in 17 trust. 18 1. The assets of the trust shall at all times be preserved, 19 invested, and expended solely and only for the purposes of the 20 trust and shall be held in trust for the account owners and 21 designated beneficiaries. 22 2. Except as provided in section 12I.4, subsection 3, no 23 property rights in the trust shall exist in favor of the state. 24 3. Except as provided in section 12I.4, subsection 3, the 25 assets of the trust shall not be transferred or used by the 26 state for any purposes other than the purposes of the trust. 27 Sec. 10. NEW SECTION . 12I.10 Implementation as a 28 contracting state —— tax considerations. 29 1. The general assembly acknowledges that section 529A of 30 the Internal Revenue Code permits access to qualified ABLE 31 programs by residents of a state without such a program. The 32 general assembly finds that becoming a contracting state may 33 accomplish the public purpose set forth in section 12I.1, 34 subsection 1, in the same manner as if the qualified ABLE 35 -8- LSB 1660SZ (2) 86 mm/sc 8/ 14

S.F. 490 program under the Iowa ABLE savings plan trust were to be 1 implemented and administered by this state. To that end, 2 the treasurer of state, as trustee of the trust, may defer 3 implementation of the qualified ABLE program under the trust 4 and alternatively cause this state to become a contracting 5 state by entering into an agreement with another state with a 6 qualified ABLE program to provide Iowa residents access to that 7 state’s qualified ABLE program. The trust shall not enter into 8 an agreement pursuant to this section unless the treasurer, 9 as trustee of the trust, determines that all of the following 10 requirements are satisfied: 11 a. The program is a qualified ABLE program. 12 b. The qualified ABLE program provides comparable benefits 13 and protections to Iowa residents as would be provided under 14 the Iowa ABLE savings plan trust. 15 c. That entering into an agreement for access to the 16 qualified ABLE program would not result in increased costs to 17 the state or to account owners and designated beneficiaries as 18 compared to the costs of implementing and administering the 19 qualified ABLE program under the Iowa ABLE savings plan trust. 20 d. The qualified ABLE program will be audited annually by 21 an independent certified public accountant or by the state 22 auditor, or similar public official, of the state that has 23 implemented the qualified ABLE program. 24 e. The qualified ABLE program will provide information to 25 the treasurer of state as trustee of the trust so as to allow 26 the trustee to fulfill the reporting requirements in section 27 12I.7. 28 2. a. The maximum amount that may be deducted for Iowa 29 income tax purposes for contributions to the qualified ABLE 30 program with which the state has contracted pursuant to 31 this section shall not exceed the maximum deductible amount 32 determined for the year pursuant to section 12D.3, subsection 33 1, paragraph “a” . This maximum amount applies per designated 34 beneficiary that is a resident of this state per year. 35 -9- LSB 1660SZ (2) 86 mm/sc 9/ 14

S.F. 490 b. State income tax treatment of the qualified ABLE program 1 with which the state has contracted pursuant to this section 2 shall be as provided in section 422.7, subsections 34 and 34A. 3 3. State inheritance tax treatment of interests in the 4 qualified ABLE program with which the state has contracted 5 pursuant to this section shall be as provided in section 450.4, 6 subsection 9. 7 Sec. 11. NEW SECTION . 12I.11 Construction. 8 This chapter shall be construed liberally in order to 9 effectuate its purpose. 10 Sec. 12. Section 422.7, Code 2015, is amended by adding the 11 following new subsections: 12 NEW SUBSECTION . 34. a. Subtract the amount contributed 13 during the tax year on behalf of a designated beneficiary 14 that is a resident of this state to the Iowa ABLE savings 15 plan trust or to the qualified ABLE program with which the 16 state has contracted pursuant to section 12I.10, not to exceed 17 the maximum contribution level established in section 12I.3, 18 subsection 1, paragraph “d” , or section 12I.10, subsection 2, 19 paragraph “a” , as applicable. 20 b. Add the amount resulting from the cancellation of a 21 participation agreement refunded to the taxpayer as an account 22 owner in the Iowa ABLE savings plan trust or the qualified 23 ABLE program with which the state has contracted pursuant to 24 section 12I.10 to the extent previously deducted pursuant 25 to this subsection by the taxpayer or any other person as a 26 contribution to the trust or qualified ABLE program. 27 c. Add the amount resulting from a withdrawal made by a 28 taxpayer from the Iowa ABLE savings plan trust or the qualified 29 ABLE program with which the state has contracted pursuant to 30 section 12I.10 for purposes other than the payment of qualified 31 disability expenses to the extent previously deducted pursuant 32 to this subsection by the taxpayer or any other person as a 33 contribution to the trust or qualified ABLE program. 34 NEW SUBSECTION . 34A. Subtract, to the extent included, 35 -10- LSB 1660SZ (2) 86 mm/sc 10/ 14

S.F. 490 income from interest and earnings received from the Iowa ABLE 1 savings plan trust created in chapter 12I, or received by a 2 resident account owner from a qualified ABLE program with which 3 the state has contracted pursuant to section 12I.10. 4 Sec. 13. Section 450.4, Code 2015, is amended by adding the 5 following new subsection: 6 NEW SUBSECTION . 9. On the value of any interest in the Iowa 7 ABLE savings plan trust created in chapter 12I, or any interest 8 held by a resident account owner in a qualified ABLE program 9 with which the state has contracted pursuant to section 12I.10. 10 Sec. 14. CONTINGENT IMPLEMENTATION. The implementation of 11 this chapter is subject to an appropriation with the stated 12 purpose of the Iowa ABLE Savings Plan Trust. 13 Sec. 15. APPLICABILITY. The section of this Act amending 14 section 450.4 applies to estates of decedents dying on or after 15 January 1, 2016. 16 Sec. 16. APPLICABILITY. The section of this Act amending 17 section 422.7 applies to tax years beginning on or after 18 January 1, 2016. 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 creates an Iowa ABLE (Achieving A Better Life 23 Experience) savings plan trust and provides for various Iowa 24 individual income tax and inheritance tax benefits. 25 BACKGROUND. On December 19, 2014, the federal Achieving 26 A Better Life Experience Act of 2014 (ABLE Act) was enacted 27 as part of the federal Tax Increase Prevention Act of 2014 28 (Pub. L. No. 113-295). The ABLE Act allows states to create 29 programs to assist individuals in saving private funds for 30 the purpose of supporting individuals with disabilities. 31 Qualifying state programs will allow for the establishment 32 of accounts into which eligible disabled individuals or 33 others may make contributions for the payment of future 34 disability-related expenses of the eligible disabled 35 -11- LSB 1660SZ (2) 86 mm/sc 11/ 14

S.F. 490 individual. Funds and earnings in accounts established 1 under qualifying state programs are afforded federal benefits 2 in certain circumstances, including federal tax exemption, 3 bankruptcy protection, and exclusion from consideration under 4 certain means-tested programs, such as Medicaid or supplemental 5 security income. 6 IOWA ABLE SAVINGS PLAN TRUST. The bill creates the Iowa 7 ABLE savings plan trust (trust) under the treasurer of state 8 (state treasurer) that will meet the requirements of §529A of 9 the Internal Revenue Code (federal ABLE program). The state 10 treasurer is the trustee of the trust and has numerous powers, 11 as specified in the bill, for the purpose of carrying out the 12 purpose of the trust. 13 The trust is authorized to enter into participation 14 agreements with individuals for the payment of future qualified 15 disability expenses, and to enter into contracts with other 16 states (contracting state) to allow these states’ residents 17 access to the Iowa ABLE program. “Qualified disability 18 expenses” means the same as defined under the federal ABLE 19 program, which generally defines the term to include expenses 20 related to a designated beneficiary’s education, housing, 21 transportation, employment training and support, assistive 22 technology and personal support services, health, prevention 23 and wellness, financial management and administrative services, 24 legal fees, expenses for oversight and monitoring, funeral and 25 burial expenses, and other expenses approved by the secretary 26 of the United States treasury (secretary). 27 Unless otherwise allowed under the federal ABLE program, 28 the person with whom the state treasurer enters into a 29 participation agreement must be both the account owner and 30 designated beneficiary. However, the bill allows a trustee 31 or legal guardian to be designated as custodian of an account 32 for a designated beneficiary who is a minor or who lacks 33 capacity to enter into a participation agreement, provided such 34 designation would be allowed under the federal ABLE program. 35 -12- LSB 1660SZ (2) 86 mm/sc 12/ 14

S.F. 490 “Designated beneficiary” is defined in the bill as a person who 1 is a resident of Iowa or a contracting state and who qualifies 2 as an eligible individual under the federal ABLE program, which 3 includes individuals who are entitled to benefits based on 4 blindness or disability under Title II (disability insurance) 5 or Title XVI (supplemental security income) of the federal 6 Social Security Act if such blindness or disability occurred 7 before attaining 26 years of age, and if such individual files 8 a disability certification with the secretary. 9 The bill requires the state treasurer to maintain a separate 10 account in the trust for each designated beneficiary of a 11 participation agreement. Unless otherwise allowed under the 12 federal ABLE program, only one participation agreement shall be 13 allowed per designated beneficiary. Any person is allowed to 14 make contributions in the form of cash to an account on behalf 15 of a designated beneficiary. The trust is required to maintain 16 limits on the annual contributions to an account, and the 17 aggregate balance in an account, matching those set forth in 18 the federal ABLE program, which prohibits annual contributions 19 to an account from exceeding the annual gift tax exclusion 20 amount ($14,000 for 2015), and prohibits an aggregate account 21 balance from exceeding the limit set by a state under its 22 qualified tuition program (currently $320,000 for Iowa). 23 The bill also permits the treasurer of state to defer 24 implementation of the Iowa ABLE program and alternatively enter 25 into an agreement with another state’s qualified ABLE program 26 to provide Iowa residents access to that state’s program, if 27 certain requirements specified in the bill are satisfied. 28 The bill provides other various terms and conditions for 29 participation agreements, use and segregation of trust funds, 30 cancellation of agreements and refund of account balances, 31 and ownership rights in the trust. The bill provides that an 32 account may be claimed by the Iowa Medicaid program upon the 33 death of the designated beneficiary, in accordance with the 34 federal ABLE program. The bill requires the state treasurer to 35 -13- LSB 1660SZ (2) 86 mm/sc 13/ 14

S.F. 490 prepare and submit audited financial reports to the governor 1 and general assembly, and further requires the state treasurer 2 to comply with any reporting requirements of the federal ABLE 3 program. The bill applies to qualified disability expenses 4 incurred on or after July 1, 2015. 5 IOWA TAX BENEFITS. The bill provides several tax benefits 6 under the trust. First, the value of any interest in the 7 trust or other contracted state’s qualified ABLE program 8 of a decedent who was an Iowa resident dying on or after 9 January 1, 2016, is excluded from the Iowa inheritance tax. 10 Second, contributions to the trust or other contracted state’s 11 qualified ABLE program made on or after January 1, 2016, on 12 behalf of a designated beneficiary who is an Iowa resident 13 are deductible from the Iowa individual income tax up to the 14 maximum amount allowed per beneficiary per year for purposes 15 of the Iowa educational savings plan trust in Code chapter 16 12D. For 2015, that amount is set at $3,163. Any amounts 17 refunded to a taxpayer from the cancellation of a participation 18 agreement or that are withdrawn for purposes other than the 19 payment of qualified disability expenses of the designated 20 beneficiary must be included in Iowa net income to the extent 21 they were previously deducted by the taxpayer or any other 22 person as a contribution. Third, income and earnings from the 23 trust or received by resident account owners from a contracted 24 state’s qualified ABLE program are exempt from the Iowa 25 individual income tax. The individual income tax benefits 26 apply to tax years beginning on or after January 1, 2016. 27 CONTINGENT IMPLEMENTATION. The implementation of the bill 28 is subject to an appropriation with the purpose of the trust 29 stated. 30 -14- LSB 1660SZ (2) 86 mm/sc 14/ 14