Senate
Study
Bill
1119
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WORKFORCE
BILL
BY
CHAIRPERSON
DICKEY)
A
BILL
FOR
An
Act
creating
a
deduction
available
against
the
individual
1
income
tax
for
educational
expenses
at
institutions
2
of
higher
education
for
career-related
programs
and
3
apprenticeship
programs,
and
including
retroactive
4
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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_____
Section
1.
Section
422.7,
Code
2025,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
45.
a.
Subtract,
to
the
extent
included,
3
the
payment
of
expenses
for
the
following:
4
(1)
For
instruction
at
an
institution
of
higher
education
5
for
career-related
programs
that
do
not
qualify
for
college
6
credit.
7
(2)
For
participation
in
an
apprenticeship
program.
8
b.
Payments
made
from
the
Iowa
education
savings
plan
9
established
in
chapter
12D
or
from
a
similar
plan
do
not
10
qualify
for
the
deduction
under
this
subsection.
11
c.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
12
to
implement
this
subsection.
13
d.
As
used
in
this
subsection:
14
(1)
“Apprenticeship
program”
means
a
program
registered
with
15
the
Iowa
office
of
apprenticeship
under
chapter
84D.
16
(2)
“Expenses”
means
tuition,
fees,
books,
supplies,
and
17
equipment.
18
(3)
“Institution
of
higher
education”
means
any
of
the
19
following:
20
(a)
A
community
college
established
under
chapter
260C.
21
(b)
An
institution
governed
by
the
state
board
of
regents.
22
(c)
An
accredited
private
institution
as
defined
in
section
23
256.183,
subsection
1.
24
(4)
“Payment”
includes
loan
repayments
for
expenses
paid
25
for
instruction
at
an
institution
of
higher
education
and
for
26
payments
of
expenses
for
instruction
at
an
institution
of
27
higher
education
and
for
the
participation
in
an
apprenticeship
28
program.
29
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
30
retroactively
to
January
1,
2025,
for
tax
years
beginning
on
31
or
after
that
date.
32
EXPLANATION
33
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
34
the
explanation’s
substance
by
the
members
of
the
general
assembly.
35
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_____
This
bill
creates
a
deduction
available
against
the
1
individual
income
tax
for
educational
expenses
at
institutions
2
of
higher
education
and
apprenticeship
programs.
3
The
bill
allows
an
individual
income
taxpayer
to
deduct
the
4
expenses
for
instruction
at
an
institution
of
higher
education
5
for
career-related
programs
that
do
not
qualify
for
college
6
credit,
and
for
participation
in
an
apprenticeship
program
7
registered
with
the
Iowa
office
of
apprenticeship
under
Code
8
chapter
84D.
9
The
bill
defines
“institution
of
higher
education”,
10
“expenses”,
and
“payment”.
11
The
bill
applies
retroactively
to
tax
years
beginning
on
or
12
after
January
1,
2025.
13
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