S.F. 2060 Section 1. Section 261A.34, subsection 4, Code 2026, is 1 amended to read as follows: 2 4. “Property” means the real estate upon which a project 3 is or will be located, including equipment, machinery, and 4 other similar items necessary or convenient for the operation 5 of the project in the manner for which its use is intended, 6 but not including such items as fuel, supplies, or other items 7 that are customarily deemed to result in a current operation 8 charge. Property does not include property used or to be used 9 primarily for sectarian instruction or study, or as a place for 10 devotional activities or religious worship, or any property 11 which is used or to be used primarily in connection with any 12 part of the program of a school or department of divinity 13 for any religious denomination or the training of ministers, 14 priests, rabbis, or other professional persons in the field of 15 religion. 16 Sec. 2. Section 261E.6, subsection 3, Code 2026, is amended 17 to read as follows: 18 3. Authorization. To participate in this program, an 19 eligible student shall make application to an eligible 20 postsecondary institution to allow the eligible student to 21 enroll for college credit in a nonsectarian course offered at 22 the institution. A comparable course, as defined in rules 23 adopted by the board of directors of the school district 24 consistent with department administrative rule, must not be 25 offered by the school district or accredited nonpublic school 26 the student attends. A course is ineligible for purposes 27 of this section if the school district has a contractual 28 agreement with the eligible postsecondary institution under 29 section 261E.8 that meets the requirements of section 257.11, 30 subsection 3 , and the course may be delivered through such an 31 agreement in accordance with section 257.11, subsection 3 . 32 If the postsecondary institution accepts an eligible student 33 for enrollment under this section , the institution shall send 34 written notice to the student, the student’s parent or legal 35 -1- LSB 5898XS (2) 91 mb/jh 1/ 6

S.F. 2060 guardian in the case of a minor child, and the student’s 1 school district or accredited nonpublic school and the school 2 district in the case of a nonpublic school student, or the Iowa 3 school for the deaf. The notice shall list the course, the 4 clock hours the student will be attending the course, and the 5 number of hours of college credit that the eligible student 6 will receive from the eligible postsecondary institution upon 7 successful completion of the course. 8 Sec. 3. Section 261E.8, subsections 1 and 3, Code 2026, are 9 amended to read as follows: 10 1. A district-to-community college sharing or concurrent 11 enrollment program is established to be administered by the 12 department to promote rigorous academic or career and technical 13 pursuits and to provide a wider variety of options to high 14 school students to enroll in eligible nonsectarian courses at 15 or through community colleges established under chapter 260C . 16 The program shall be made available to all resident students 17 in grades nine through twelve. Notice of the availability of 18 the program shall be included in a school district’s student 19 registration handbook and the handbook shall identify which 20 courses, if successfully completed, generate college credit 21 under the program. A student and the student’s parent or legal 22 guardian shall also be made aware of this program as a part of 23 the development of the student’s career and academic plan in 24 accordance with section 279.61 . 25 3. A student may make application to a community college and 26 the school district to allow the student to enroll for college 27 credit in a nonsectarian course offered by the community 28 college. A comparable course, as defined in rules adopted 29 by the board of directors of the school district, must not 30 be offered by the school district or accredited nonpublic 31 school which the student attends. The school board shall 32 annually approve courses to be made available for high school 33 credit using locally developed criteria that establishes 34 which courses will provide the student with academic rigor 35 -2- LSB 5898XS (2) 91 mb/jh 2/ 6

S.F. 2060 and will prepare the student adequately for transition to a 1 postsecondary institution. If a community college accepts a 2 student for enrollment under this section , the school district, 3 in collaboration with the community college, shall send 4 written notice to the student, the student’s parent or legal 5 guardian in the case of a minor child, and the student’s school 6 district. The notice shall list the course, the clock hours 7 the student will be attending the course, and the number of 8 hours of college credit that the student will receive from the 9 community college upon successful completion of the course. 10 Sec. 4. Section 301.1, subsection 2, Code 2026, is amended 11 to read as follows: 12 2. Textbooks adopted and purchased by a school district 13 shall, to the extent funds are appropriated by the general 14 assembly, be made available to pupils attending accredited 15 nonpublic schools upon request of the pupil or the pupil’s 16 parent under comparable terms as made available to pupils 17 attending public schools. If the general assembly appropriates 18 moneys for purposes of making textbooks available to accredited 19 nonpublic school pupils, the department of education shall 20 ascertain the amount available to a school district for the 21 purchase of nonsectarian, nonreligious textbooks for pupils 22 attending accredited nonpublic schools. The amount shall be 23 in the proportion that the basic enrollment of a participating 24 accredited nonpublic school bears to the sum of the basic 25 enrollments of all participating accredited nonpublic schools 26 in the state for the budget year. For purposes of this 27 section , a “participating accredited nonpublic school” means 28 an accredited nonpublic school that submits a written request 29 on behalf of the school’s pupils in accordance with this 30 subsection , and that certifies its actual enrollment to the 31 department of education by October 1, annually. By November 32 1, annually, the department of education shall certify to 33 the director of the department of administrative services 34 the annual amount to be paid to each school district, and 35 -3- LSB 5898XS (2) 91 mb/jh 3/ 6

S.F. 2060 the director of the department of administrative services 1 shall draw warrants payable to school districts in accordance 2 with this subsection . For purposes of this subsection , 3 an accredited nonpublic school’s enrollment count shall 4 include only students who are residents of Iowa. The costs 5 of providing textbooks to accredited nonpublic school pupils 6 as provided in this subsection shall not be included in the 7 computation of district cost under chapter 257 , but shall be 8 shown in the budget as an expense from miscellaneous income. 9 Textbook expenditures made in accordance with this subsection 10 shall be kept on file in the school district. In the event 11 that a participating accredited nonpublic school physically 12 relocates to another school district, textbooks purchased for 13 the nonpublic school with funds appropriated for purposes 14 of this chapter shall be transferred to the school district 15 in which the nonpublic school has relocated and may be made 16 available to the nonpublic school. Funds distributed to 17 a school district for purposes of purchasing textbooks in 18 accordance with this subsection which remain unexpended and 19 available for the purchase of textbooks for the nonpublic 20 school that relocated in the fiscal year in which the funds 21 were distributed shall also be transferred to the school 22 district in which the nonpublic school has relocated. 23 Sec. 5. Section 331.901, subsection 5, Code 2026, is amended 24 by striking the subsection. 25 Sec. 6. Section 331.901, subsection 7, Code 2026, is amended 26 to read as follows: 27 7. A county officer, deputy officer, or employee who 28 violates subsection 4 or 5 is guilty of a simple misdemeanor. 29 Sec. 7. Section 422.12, subsection 1, paragraphs e and f, 30 Code 2026, are amended to read as follows: 31 e. “Textbooks” means books and other instructional materials 32 and equipment used in elementary and secondary schools in 33 teaching only those subjects legally and commonly taught in 34 public elementary and secondary schools in this state and 35 -4- LSB 5898XS (2) 91 mb/jh 4/ 6

S.F. 2060 does not include instructional books and materials used in 1 the teaching of religious tenets, doctrines, or worship, the 2 purpose of which is to inculcate those tenets, doctrines, or 3 worship . “Textbooks” includes books or materials used for 4 extracurricular activities including sporting events, musical 5 or dramatic events, speech activities, driver’s education, or 6 programs of a similar nature. 7 f. “Tuition” means any charges for the expenses of 8 personnel, buildings, equipment, and materials other than 9 textbooks, and other expenses of elementary or secondary 10 schools which relate to the teaching only of those subjects 11 legally and commonly taught in public elementary and 12 secondary schools in this state and which do not relate to 13 the teaching of religious tenets, doctrines, or worship, the 14 purpose of which is to inculcate those tenets, doctrines, or 15 worship . “Tuition” includes those expenses which relate to 16 extracurricular activities including sporting events, musical 17 or dramatic events, speech activities, driver’s education, or 18 programs of a similar nature. 19 Sec. 8. Section 422.12C, subsection 2, paragraph b, 20 subparagraph (2), Code 2026, is amended by striking the 21 subparagraph. 22 Sec. 9. RETROACTIVE APPLICABILITY. The following sections 23 of this Act apply retroactively to January 1, 2026, for tax 24 years beginning on or after that date: 25 1. The section of this Act amending section 422.12, 26 subsection 1, paragraphs “e” and “f”. 27 2. The section of this Act amending section 422.12C, 28 subsection 2, paragraph “b”, subparagraph (2). 29 EXPLANATION 30 The inclusion of this explanation does not constitute agreement with 31 the explanation’s substance by the members of the general assembly. 32 This bill amends and strikes statutory language to remove 33 exclusions and limitations based on religious or sectarian use 34 from multiple state programs and tax provisions. 35 -5- LSB 5898XS (2) 91 mb/jh 5/ 6

S.F. 2060 The bill amends the higher education facilities program by 1 removing the exclusion of property used for sectarian study 2 from the definition of eligible property. 3 The bill amends the postsecondary enrollment options program 4 and the district-to-community college sharing or concurrent 5 enrollment program by removing the nonsectarian course 6 requirement. 7 The bill amends textbook assistance for accredited nonpublic 8 schools by removing religious limitations on the type of 9 textbooks that may be purchased. 10 The bill strikes duties of county officers that prohibit 11 the appropriation, grant, or loan of public funds to certain 12 institutions or entities under ecclesiastical or sectarian 13 management or control and makes a conforming change as result 14 of the strike. 15 The bill removes exclusions of sectarian books and expenses 16 that relate to the teaching of religion from the definitions of 17 textbooks and tuition for purposes of the tuition and textbook 18 tax credit. This provision of the bill applies retroactively 19 to January 1, 2026, for tax years beginning on or after that 20 date. 21 Lastly, the bill strikes exclusions of certain religious 22 services, materials, or activities from the definition of 23 “early childhood development expenses” for purposes of the 24 early childhood development tax credit. This provision of the 25 bill applies retroactively to January 1, 2026, for tax years 26 beginning on or after that date. 27 -6- LSB 5898XS (2) 91 mb/jh 6/ 6