Senate Study Bill 1188 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON WAYS AND MEANS BILL BY CHAIRPERSON FEENSTRA) A BILL FOR An Act relating to the school tuition organization tax credit 1 by amending the requirements for a student to receive a 2 tuition grant under the program, and including effective 3 date and retroactive and other applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 2683XC (3) 87 mm/rn

S.F. _____ Section 1. Section 422.11S, subsection 6, paragraph a, Code 1 2017, is amended to read as follows: 2 a. “Eligible student” means a student who is a member of a 3 household whose total annual income during the calendar year 4 before the student receives a tuition grant for purposes of 5 this section does not exceed an amount equal to three four 6 times the most recently published federal poverty guidelines in 7 the federal register by the United States department of health 8 and human services. 9 Sec. 2. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 10 immediate importance, takes effect upon enactment. 11 Sec. 3. APPLICABILITY. This Act applies to tuition grants 12 provided on or after the effective date of this Act. 13 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 14 retroactively to January 1, 2017, for tax years beginning on 15 or after that date. 16 EXPLANATION 17 The inclusion of this explanation does not constitute agreement with 18 the explanation’s substance by the members of the general assembly. 19 Current law provides an individual and corporate income tax 20 credit for charitable contributions to certain nonprofit school 21 tuition organizations that provide tuition grants to eligible 22 students for attendance at nonpublic elementary or secondary 23 schools in Iowa. In order to qualify as a school tuition 24 organization eligible for the tax credit an organization 25 must, among other requirements, only provide tuition grants 26 to eligible students. In order to qualify as an “eligible 27 student” under the program, a student’s household income must 28 not exceed three times the federal poverty amount. This bill 29 increases that household income limit to four times the federal 30 poverty amount. 31 The bill takes effect upon enactment and applies to 32 tuition grants provided on or after that date, and applies 33 retroactively to January 1, 2017, for tax years beginning on 34 or after that date. 35 -1- LSB 2683XC (3) 87 mm/rn 1/ 1