Senate File 2460 - Introduced SENATE FILE 2460 BY DRISCOLL A BILL FOR An Act providing for the rural veterinarian loan repayment 1 program, including by allowing a loan repayment recipient to 2 exclude net income attributable to loan payments received 3 under the program. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 6114XS (4) 91 da/js

S.F. 2460 Section 1. Section 256.226, subsection 4, paragraph c, Code 1 2026, is amended to read as follows: 2 c. (1) Secure Subject to subparagraph (2), secure an 3 offer of employment or establish and maintain a practice in a 4 veterinary shortage situation or rural service commitment area 5 and engage in the full-time practice of veterinary medicine 6 for a period of four consecutive years after entering into the 7 agreement in the veterinary shortage area or rural service 8 commitment area , unless the loan repayment recipient receives . 9 (2) (a) The loan repayment recipient may notify the 10 commission that the loan repayment recipient will complete the 11 years of full-time practice required under the agreement by 12 securing new employment, or establishing and maintaining a new 13 practice, in the same veterinary shortage area or rural service 14 commitment area, according to rules adopted by the commission. 15 (b) The commission may grant the loan repayment recipient a 16 waiver from the commission to complete the years of full-time 17 practice required under the agreement in another veterinary 18 shortage area or rural service commitment area pursuant to 19 subsection 7 . 20 Sec. 2. Section 422.7, Code 2026, is amended by adding the 21 following new subsection: 22 NEW SUBSECTION . 46. a. Subtract, to the extent included, 23 loan repayments received under a program agreement entered into 24 between a taxpayer who is a loan repayment recipient and the 25 college student aid commission pursuant to section 256.226, if 26 the taxpayer fulfills the obligation to engage in the practice 27 of veterinary medicine according to terms of that section 28 including the program agreement. 29 b. The subtraction in paragraph “a” shall not exceed the 30 following limits: 31 (1) For any tax year, fifteen thousand dollars. 32 (2) For the aggregate of all tax years, sixty thousand 33 dollars. 34 (3) In any case, the amount of the outstanding eligible 35 -1- LSB 6114XS (4) 91 da/js 1/ 3

S.F. 2460 loan. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 BACKGROUND. Code section 256.226 establishes a rural 5 veterinarian loan repayment program (program) administered by 6 the college student aid commission (commission). The purpose 7 of the program is to provide for the repayment of a student 8 loan (eligible loan) to an individual who is either enrolled 9 in the final year of a college of veterinary medicine in order 10 to receive a doctor of veterinary medicine degree or who is a 11 licensed veterinarian who received a degree within five years 12 of applying to participate in the program. The individual must 13 enter into a program agreement (agreement) with the commission 14 in which the commission assumes the payment of the eligible 15 loan and the loan repayment recipient (recipient) agrees to 16 engage in the practice of veterinary medicine (practice) for 17 four years in a rural service commitment area or a veterinary 18 shortage area (rural area). The commission assumes eligible 19 loan payments each year of the recipient’s eligible practice 20 for a period of four consecutive years. An eligible loan 21 payment amount cannot exceed $15,000 annually and cannot exceed 22 a total of either $60,000 or the amount of the outstanding 23 eligible loan. 24 BILL’S PROVISIONS. Currently, the commission may grant a 25 recipient a waiver to complete the years of practice required 26 under the agreement in another rural area. This bill provides 27 that the recipient may notify the commission that the loan 28 recipient will complete the years of practice required under 29 the agreement by securing new employment, or establishing and 30 maintaining a new practice, in the same rural area, according 31 to rules adopted by the commission. The bill allows the 32 recipient to exclude net income attributable to eligible 33 loan payments received under the program, subject to the 34 restrictions provided in the program. The amount subject to 35 -2- LSB 6114XS (4) 91 da/js 2/ 3

S.F. 2460 the income exclusion cannot exceed $15,000 per tax year, and 1 an aggregate of $60,000 for all tax years. However, in any 2 case, the total excluded amount cannot exceed the amount of the 3 recipient’s outstanding eligible loan. 4 -3- LSB 6114XS (4) 91 da/js 3/ 3