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House File 2340 - IntroducedA Bill ForAn Act 1relating to the Iowa educational savings plan trust by
2permitting the use of funds for certain beneficiaries to
3attend out-of-state elementary or secondary schools, and
4including retroactive applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.7, subsection 32, paragraph c,
2subparagraph (2), subparagraph division (a), Code 2020, is
3amended to read as follows:
4(a) (i) “Elementary or secondary school” Except as provided
5in subparagraph subdivision (ii), “elementary or secondary
6school” means an elementary or secondary school in this state
7which is accredited under section 256.11, and adheres to the
8provisions of the federal Civil Rights Act of 1964 and chapter
9216.
10(ii) “Elementary or secondary school” includes an elementary
11or secondary school located out of state that educates a
12beneficiary who meets the definition of “children requiring
13special education” in section 256B.2, if the elementary or
14secondary school is accredited under the laws of the state in
15which it is located and adheres to the federal Civil Rights Act
16of 1964 and applicable state law analogous to chapter 216.
17 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
18retroactively to January 1, 2020, for tax years beginning on
19or after that date.
20EXPLANATION
21The inclusion of this explanation does not constitute agreement with
22the explanation’s substance by the members of the general assembly.
23This bill relates to the Iowa educational savings plan
24trust (529 plan) by permitting the use of funds for certain
25beneficiaries to attend out-of-state elementary or secondary
26schools.
27Currently, a taxpayer does not pay taxes on money withdrawn
28from a 529 plan to pay for qualified education expenses to
29an elementary or secondary school located in this state,
30among other tax incentives available to a participant in a
31529 plan. The bill amends the definition of “elementary or
32secondary school” by permitting tax-free withdrawals to pay
33qualified educational expenses for an out-of-state elementary
34or secondary school that educates a beneficiary who meets the
35definition of “children requiring special education” in Code
-1-1section 256B.2.
2The bill applies retroactively to tax years beginning on or
3after January 1, 2020.
-2-jm/jh
2permitting the use of funds for certain beneficiaries to
3attend out-of-state elementary or secondary schools, and
4including retroactive applicability provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.7, subsection 32, paragraph c,
2subparagraph (2), subparagraph division (a), Code 2020, is
3amended to read as follows:
4(a) (i) “Elementary or secondary school” Except as provided
5in subparagraph subdivision (ii), “elementary or secondary
6school” means an elementary or secondary school in this state
7which is accredited under section 256.11, and adheres to the
8provisions of the federal Civil Rights Act of 1964 and chapter
9216.
10(ii) “Elementary or secondary school” includes an elementary
11or secondary school located out of state that educates a
12beneficiary who meets the definition of “children requiring
13special education” in section 256B.2, if the elementary or
14secondary school is accredited under the laws of the state in
15which it is located and adheres to the federal Civil Rights Act
16of 1964 and applicable state law analogous to chapter 216.
17 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
18retroactively to January 1, 2020, for tax years beginning on
19or after that date.
20EXPLANATION
21The inclusion of this explanation does not constitute agreement with
22the explanation’s substance by the members of the general assembly.
23This bill relates to the Iowa educational savings plan
24trust (529 plan) by permitting the use of funds for certain
25beneficiaries to attend out-of-state elementary or secondary
26schools.
27Currently, a taxpayer does not pay taxes on money withdrawn
28from a 529 plan to pay for qualified education expenses to
29an elementary or secondary school located in this state,
30among other tax incentives available to a participant in a
31529 plan. The bill amends the definition of “elementary or
32secondary school” by permitting tax-free withdrawals to pay
33qualified educational expenses for an out-of-state elementary
34or secondary school that educates a beneficiary who meets the
35definition of “children requiring special education” in Code
-1-1section 256B.2.
2The bill applies retroactively to tax years beginning on or
3after January 1, 2020.
-2-jm/jh