Senate File 49 - Introduced SENATE FILE 49 BY WHITING A BILL FOR An Act relating to the tuition and textbook tax credit 1 available against the individual income tax, and including 2 retroactive applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1200SS (3) 89 jm/jh

S.F. 49 Section 1. Section 422.12, subsection 1, Code 2021, is 1 amended by adding the following new paragraph: 2 NEW PARAGRAPH . 0c. “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 422.12, subsection 2, paragraph b, Code 8 2021, is amended to read as follows: 9 b. A tuition credit equal to twenty-five percent of the 10 first one thousand dollars which the taxpayer has paid to 11 others for each dependent in grades kindergarten through 12 twelve, for tuition and textbooks of each dependent in 13 receiving private instruction or attending an elementary or 14 secondary school situated in Iowa, which school is accredited 15 or approved under section 256.11 , which is not operated for 16 profit, and which adheres to the provisions of the federal 17 Civil Rights Act of 1964 and chapter 216 . Notwithstanding 18 any other provision, all other credits allowed under this 19 subsection shall be deducted before the tuition credit under 20 this paragraph. The department, when conducting an audit of 21 a taxpayer’s return, shall also audit the tuition tax credit 22 portion of the tax return. 23 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies 24 retroactively to January 1, 2021, for tax years beginning on 25 or after that date. 26 EXPLANATION 27 The inclusion of this explanation does not constitute agreement with 28 the explanation’s substance by the members of the general assembly. 29 This bill relates to the tuition and textbook tax credit 30 available against the individual income tax. 31 Currently, a taxpayer receives the tuition and textbook 32 tax credit for each dependent of the taxpayer attending an 33 accredited private elementary or secondary school equal to 34 25 percent of the first $1,000 which the taxpayer has paid 35 -1- LSB 1200SS (3) 89 jm/jh 1/ 2

S.F. 49 to others for the tuition and textbooks of each dependent in 1 attendance at such a school. 2 The bill allows a taxpayer to receive the tuition and 3 textbook tax credit for each dependent of the taxpayer 4 receiving private instruction equal to 25 percent of the first 5 $1,000 which the taxpayer has paid to others for the tuition 6 and textbooks of each dependent receiving such instruction. 7 The bill defines “private instruction” to mean a student 8 receiving independent private instruction as defined in Code 9 section 299A.1(2)(b), competent private instruction under Code 10 section 299A.2, or private instruction by a nonlicensed person 11 under Code section 299A.3. 12 The bill applies retroactively to January 1, 2021, for tax 13 years beginning on or after that date. 14 -2- LSB 1200SS (3) 89 jm/jh 2/ 2