House
File
580
-
Introduced
HOUSE
FILE
580
BY
WHEELER
A
BILL
FOR
An
Act
relating
to
the
Iowa
educational
savings
plan
trust
1
by
excluding
from
the
computation
of
net
income
for
the
2
individual
income
tax
withdrawals
for
the
payment
of
3
qualified
education
expenses
for
private
instruction,
and
4
including
retroactive
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
Section
12D.1,
subsection
2,
Code
2021,
is
1
amended
by
adding
the
following
new
paragraph:
2
NEW
PARAGRAPH
.
0j.
“Private
instruction”
means
independent
3
private
instruction
as
defined
in
section
299A.1,
subsection
4
2,
paragraph
“b”
,
competent
private
instruction
under
section
5
299A.2,
or
private
instruction
by
a
nonlicensed
person
under
6
section
299A.3.
7
Sec.
2.
Section
12D.1,
subsection
2,
paragraph
k,
Code
2021,
8
is
amended
to
read
as
follows:
9
k.
“Qualified
education
expenses”
means
the
same
as
10
“qualified
higher
education
expenses”
as
defined
in
section
11
529(e)(3)
of
the
Internal
Revenue
Code,
as
amended
by
Pub.
L.
12
No.
115-97,
and
shall
include
elementary
and
secondary
school
13
expenses
for
tuition
described
in
section
529(c)(7)
of
the
14
Internal
Revenue
Code,
subject
to
the
limitations
imposed
by
15
section
529(e)(3)(A)
of
the
Internal
Revenue
Code.
“Qualified
16
education
expenses”
includes
expenses
for
the
participation
17
in
an
apprenticeship
program
registered
and
certified
with
18
the
United
States
secretary
of
labor
under
section
1
of
the
19
National
Apprenticeship
Act,
29
U.S.C.
§50,
and
amounts
paid
as
20
principal
or
interest
on
any
qualified
education
loan
on
behalf
21
of
a
beneficiary
or
a
sibling
of
the
beneficiary,
subject
to
22
the
limitations
imposed
by
section
529(c)(9)(B)
and
(C)
of
23
the
Internal
Revenue
Code.
“Qualified
education
expenses”
24
includes
the
payment
to
others
of
expenses
described
in
25
section
529(e)(3)(A)
of
the
Internal
Revenue
Code
for
private
26
instruction.
27
Sec.
3.
Section
422.7,
subsection
32,
paragraph
c,
28
subparagraph
(1),
Code
2021,
is
amended
by
adding
the
following
29
new
subparagraph
division:
30
NEW
SUBPARAGRAPH
DIVISION
.
(g)
The
payment
of
qualified
31
education
expenses
described
in
section
529(e)(3)(A)
of
the
32
Internal
Revenue
Code
to
others
for
private
instruction.
33
Sec.
4.
Section
422.7,
subsection
32,
paragraph
c,
34
subparagraph
(2),
Code
2021,
is
amended
by
adding
the
following
35
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new
subparagraph
division:
1
NEW
SUBPARAGRAPH
DIVISION
.
(0c)
“Private
instruction”
means
2
the
same
as
defined
in
section
12D.1,
subsection
2.
3
Sec.
5.
RETROACTIVE
APPLICABILITY.
This
Act
applies
4
retroactively
to
January
1,
2021,
for
tax
years
beginning
on
5
or
after
that
date.
6
EXPLANATION
7
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
8
the
explanation’s
substance
by
the
members
of
the
general
assembly.
9
This
bill
relates
to
the
Iowa
educational
savings
plan
trust
10
(529
plan)
by
excluding
from
the
computation
of
net
income
11
for
the
individual
income
tax
withdrawals
for
the
payment
of
12
qualified
education
expenses
for
private
instruction.
13
The
bill
defines
“private
instruction”
to
mean
independent
14
private
instruction
as
defined
in
Code
section
299A.1(2)(b),
15
competent
private
instruction
under
Code
section
299A.2,
or
16
private
instruction
by
a
nonlicensed
person
under
Code
section
17
299A.3.
18
Under
the
bill,
“qualified
education
expenses”
include
19
expenses
described
in
section
529(e)(3)(A)
of
the
Internal
20
Revenue
Code
including
tuition,
fees,
books,
and
equipment.
21
The
federal
tax
treatment
of
the
type
of
withdrawal
22
described
in
the
bill
may
differ
from
the
state
tax
treatment
23
under
the
bill.
24
The
bill
applies
retroactively
to
January
1,
2021,
and
25
applies
to
tax
years
beginning
on
or
after
that
date.
26
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