HF 2160 (LSB 5686YH (1) 87)

HOUSE FILE 2160

BY  BROWN-POWERS

A BILL FOR

An Act increasing the amount of the tuition tax credit and including retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 422.12, subsection 2, paragraph b, Code 2018, is amended to read as follows:
   b.  A tuition credit equal to twenty-five percent of the first one two thousand dollars which that the taxpayer has paid to others for each dependent in grades kindergarten through twelve, for tuition and textbooks of each dependent in attending an elementary or secondary school situated in Iowa, which school is accredited or approved under section 256.11, which is not operated for profit, and which adheres to the provisions of the federal Civil Rights Act of 1964 and chapter 216. Notwithstanding any other provision, all other credits allowed under this subsection shall be deducted before the tuition credit under this paragraph. The department, when conducting an audit of a taxpayer’s return, shall also audit the tuition tax credit portion of the tax return.
    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2018, for tax years beginning on or after that date.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill increases the amount of the tuition tax credit allowed under Code section 422.12 from 25 percent of the first $1,000 paid for tuition and textbooks to 25 percent of the first $2,000 paid. 
   The bill applies retroactively to January 1, 2018, for tax years beginning on or after that date.