House
File
2340
-
Introduced
HOUSE
FILE
2340
BY
COMMITTEE
ON
EDUCATION
(SUCCESSOR
TO
HF
2024)
A
BILL
FOR
An
Act
relating
to
the
Iowa
educational
savings
plan
trust
by
1
permitting
the
use
of
funds
for
certain
beneficiaries
to
2
attend
out-of-state
elementary
or
secondary
schools,
and
3
including
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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2340
Section
1.
Section
422.7,
subsection
32,
paragraph
c,
1
subparagraph
(2),
subparagraph
division
(a),
Code
2020,
is
2
amended
to
read
as
follows:
3
(a)
(i)
“Elementary
or
secondary
school”
Except
as
provided
4
in
subparagraph
subdivision
(ii),
“elementary
or
secondary
5
school”
means
an
elementary
or
secondary
school
in
this
state
6
which
is
accredited
under
section
256.11
,
and
adheres
to
the
7
provisions
of
the
federal
Civil
Rights
Act
of
1964
and
chapter
8
216
.
9
(ii)
“Elementary
or
secondary
school”
includes
an
elementary
10
or
secondary
school
located
out
of
state
that
educates
a
11
beneficiary
who
meets
the
definition
of
“children
requiring
12
special
education”
in
section
256B.2,
if
the
elementary
or
13
secondary
school
is
accredited
under
the
laws
of
the
state
in
14
which
it
is
located
and
adheres
to
the
federal
Civil
Rights
Act
15
of
1964
and
applicable
state
law
analogous
to
chapter
216.
16
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
17
retroactively
to
January
1,
2020,
for
tax
years
beginning
on
18
or
after
that
date.
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
(529
plan)
by
permitting
the
use
of
funds
for
certain
24
beneficiaries
to
attend
out-of-state
elementary
or
secondary
25
schools.
26
Currently,
a
taxpayer
does
not
pay
taxes
on
money
withdrawn
27
from
a
529
plan
to
pay
for
qualified
education
expenses
to
28
an
elementary
or
secondary
school
located
in
this
state,
29
among
other
tax
incentives
available
to
a
participant
in
a
30
529
plan.
The
bill
amends
the
definition
of
“elementary
or
31
secondary
school”
by
permitting
tax-free
withdrawals
to
pay
32
qualified
educational
expenses
for
an
out-of-state
elementary
33
or
secondary
school
that
educates
a
beneficiary
who
meets
the
34
definition
of
“children
requiring
special
education”
in
Code
35
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section
256B.2.
1
The
bill
applies
retroactively
to
tax
years
beginning
on
or
2
after
January
1,
2020.
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