SF 2137 (LSB 5555SV (1) 91)

SENATE FILE 2137

BY  COMMITTEE ON STATE GOVERNMENT

(SUCCESSOR TO SSB 3027)

A BILL FOR

An Act relating to the definition of qualified education expenses.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

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