S.F. 2137 Section 1. Section 12D.1, subsection 2, paragraph k, Code 1 2026, is amended to read as follows: 2 k. “Qualified education expenses” means the same as 3 “qualified higher education expenses” as defined in section 4 529(e)(3) of the Internal Revenue Code, as amended by Pub. L. 5 No. 115-97 , and shall include elementary and secondary school 6 expenses for tuition described in section 529(c)(7) of the 7 Internal Revenue Code, subject to the limitations imposed by 8 section 529(e)(3)(A) of the Internal Revenue Code. “Qualified 9 education expenses” includes expenses for the participation 10 in an apprenticeship program registered and certified with 11 the United States secretary of labor under section 1 of the 12 National Apprenticeship Act, 29 U.S.C. §50, and amounts paid as 13 principal or interest on any qualified education loan on behalf 14 of a beneficiary or a sibling of the beneficiary, subject to 15 the limitations imposed by section 529(c)(9)(B) and (C) of the 16 Internal Revenue Code. 17 EXPLANATION 18 The inclusion of this explanation does not constitute agreement with 19 the explanation’s substance by the members of the general assembly. 20 For purposes of the Iowa educational savings plan trust 21 (Code chapter 12D), this bill strikes an unnecessary reference 22 to a specific amendment to the Internal Revenue Code in the 23 definition of “qualified education expenses”. “Internal 24 Revenue Code” is defined in Code chapter 12D to mean the 25 Internal Revenue Code of 1986, as amended, and regulations 26 promulgated thereunder (see Code section 12I.1). 27 -1- LSB 5555SV (1) 91 sc/ns 1/ 1