Print
Senate File 49 - IntroducedA Bill ForAn Act 1relating to the tuition and textbook tax credit
2available against the individual income tax, and including
3retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.12, subsection 1, Code 2021, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. 0c. “Private instruction” means independent
4private instruction as defined in section 299A.1, subsection
52, paragraph “b”, competent private instruction under section
6299A.2, or private instruction by a nonlicensed person under
7section 299A.3.
8 Sec. 2. Section 422.12, subsection 2, paragraph b, Code
92021, is amended to read as follows:
10b. A tuition credit equal to twenty-five percent of the
11first one thousand dollars which the taxpayer has paid to
12others for each dependent in grades kindergarten through
13twelve, for tuition and textbooks of each dependent in
14 receiving private instruction or attending an elementary or
15secondary school situated in Iowa, which school is accredited
16or approved under section 256.11, which is not operated for
17profit, and which adheres to the provisions of the federal
18Civil Rights Act of 1964 and chapter 216. Notwithstanding
19any other provision, all other credits allowed under this
20subsection shall be deducted before the tuition credit under
21this paragraph. The department, when conducting an audit of
22a taxpayer’s return, shall also audit the tuition tax credit
23portion of the tax return.
24 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
25retroactively to January 1, 2021, for tax years beginning on
26or after that date.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
30This bill relates to the tuition and textbook tax credit
31available against the individual income tax.
32Currently, a taxpayer receives the tuition and textbook
33tax credit for each dependent of the taxpayer attending an
34accredited private elementary or secondary school equal to
3525 percent of the first $1,000 which the taxpayer has paid
-1-1to others for the tuition and textbooks of each dependent in
2attendance at such a school.
3The bill allows a taxpayer to receive the tuition and
4textbook tax credit for each dependent of the taxpayer
5receiving private instruction equal to 25 percent of the first
6$1,000 which the taxpayer has paid to others for the tuition
7and textbooks of each dependent receiving such instruction.
8The bill defines “private instruction” to mean a student
9receiving independent private instruction as defined in Code
10section 299A.1(2)(b), competent private instruction under Code
11section 299A.2, or private instruction by a nonlicensed person
12under Code section 299A.3.
13The bill applies retroactively to January 1, 2021, for tax
14years beginning on or after that date.
-2-jm/jh
2available against the individual income tax, and including
3retroactive applicability provisions.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 422.12, subsection 1, Code 2021, is
2amended by adding the following new paragraph:
3 NEW PARAGRAPH. 0c. “Private instruction” means independent
4private instruction as defined in section 299A.1, subsection
52, paragraph “b”, competent private instruction under section
6299A.2, or private instruction by a nonlicensed person under
7section 299A.3.
8 Sec. 2. Section 422.12, subsection 2, paragraph b, Code
92021, is amended to read as follows:
10b. A tuition credit equal to twenty-five percent of the
11first one thousand dollars which the taxpayer has paid to
12others for each dependent in grades kindergarten through
13twelve, for tuition and textbooks of each dependent in
14 receiving private instruction or attending an elementary or
15secondary school situated in Iowa, which school is accredited
16or approved under section 256.11, which is not operated for
17profit, and which adheres to the provisions of the federal
18Civil Rights Act of 1964 and chapter 216. Notwithstanding
19any other provision, all other credits allowed under this
20subsection shall be deducted before the tuition credit under
21this paragraph. The department, when conducting an audit of
22a taxpayer’s return, shall also audit the tuition tax credit
23portion of the tax return.
24 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
25retroactively to January 1, 2021, for tax years beginning on
26or after that date.
27EXPLANATION
28The inclusion of this explanation does not constitute agreement with
29the explanation’s substance by the members of the general assembly.
30This bill relates to the tuition and textbook tax credit
31available against the individual income tax.
32Currently, a taxpayer receives the tuition and textbook
33tax credit for each dependent of the taxpayer attending an
34accredited private elementary or secondary school equal to
3525 percent of the first $1,000 which the taxpayer has paid
-1-1to others for the tuition and textbooks of each dependent in
2attendance at such a school.
3The bill allows a taxpayer to receive the tuition and
4textbook tax credit for each dependent of the taxpayer
5receiving private instruction equal to 25 percent of the first
6$1,000 which the taxpayer has paid to others for the tuition
7and textbooks of each dependent receiving such instruction.
8The bill defines “private instruction” to mean a student
9receiving independent private instruction as defined in Code
10section 299A.1(2)(b), competent private instruction under Code
11section 299A.2, or private instruction by a nonlicensed person
12under Code section 299A.3.
13The bill applies retroactively to January 1, 2021, for tax
14years beginning on or after that date.
-2-jm/jh