Bill Text: IA HSB673 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for creating a student loan tax credit available against the state individual income tax, and including retroactive applicability provisions.
Spectrum: Unknown
Status: (N/A - Dead) 2014-03-18 - In Ways and Means [HSB673 Detail]
Download: Iowa-2013-HSB673-Introduced.html
House
Study
Bill
673
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
SANDS)
A
BILL
FOR
An
Act
creating
a
student
loan
tax
credit
available
against
1
the
state
individual
income
tax,
and
including
retroactive
2
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
TLSB
5575YC
(2)
85
mm/sc
H.F.
_____
Section
1.
Section
262.9,
Code
2014,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
38.
a.
Calculate
for
each
calendar
3
year
the
average
resident
undergraduate
tuition
to
attend
4
institutions
listed
in
section
262.7,
subsections
1,
2,
and
3,
5
and
notify
the
director
of
the
department
of
revenue
of
that
6
amount
by
January
31
of
the
succeeding
year.
7
b.
This
subsection
is
repealed
January
1,
2024.
8
Sec.
2.
NEW
SECTION
.
422.11C
Student
loan
tax
credit.
9
1.
For
purposes
of
this
section:
10
a.
“Approved
postsecondary
educational
institution”
means
any
11
of
the
following:
12
(1)
A
community
college
established
under
chapter
260C.
13
(2)
An
institution
of
higher
learning
under
the
control
of
14
the
state
board
of
regents.
15
(3)
A
nonprofit
accredited
private
institution
in
this
16
state
that
meets
the
requirements
in
section
261.9,
subsection
17
1,
and
the
requirements
of
the
provisions
of
the
federal
Higher
18
Education
Act
of
1965,
as
amended,
for
student
participation
in
19
the
federal
interest
subsidy
program.
20
b.
“Average
Iowa
tuition”
means
the
average
resident
21
undergraduate
tuition
determined
under
section
262.9,
22
subsection
38,
for
the
calendar
year
immediately
preceding
the
23
tax
year
for
which
the
credit
under
this
section
is
claimed.
24
c.
“Qualified
student
loan”
means
any
loan
that
is
made,
25
insured,
or
guaranteed
under
Tit.
IV
of
the
federal
Higher
26
Education
Act
of
1965,
as
amended,
directly
to
the
taxpayer
27
for
attendance
at
an
approved
postsecondary
educational
28
institution.
29
d.
“Qualified
taxpayer”
means
a
taxpayer
who
meets
all
of
30
the
following
requirements:
31
(1)
The
taxpayer
attended
an
approved
postsecondary
32
educational
institution
and
received
a
bachelor’s
degree
33
from
an
approved
postsecondary
educational
institution
after
34
December
31,
2013.
35
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H.F.
_____
(2)
The
taxpayer
is
a
resident
of
this
state
for
the
entire
1
tax
year.
2
(3)
The
taxpayer
is
employed
in
this
state.
If
the
taxpayer
3
is
employed
in
this
state
during
any
part
of
the
month,
the
4
taxpayer
shall
be
considered
employed
in
this
state
for
the
5
entire
month.
6
2.
The
taxes
imposed
under
this
division,
less
the
credits
7
allowed
under
section
422.12,
shall
be
reduced
by
a
student
8
loan
tax
credit
equal
to
fifty
percent
of
the
amount
paid
on
a
9
qualified
student
loan
by
a
qualified
taxpayer
during
the
tax
10
year,
not
to
exceed
an
amount
equal
to
twenty
percent
of
the
11
average
Iowa
tuition
per
tax
year.
12
3.
If
the
taxpayer
is
not
a
qualified
taxpayer
for
the
13
entire
tax
year,
the
maximum
amount
of
the
credit
shall
be
14
prorated
and
the
amount
of
credit
for
the
taxpayer
shall
equal
15
the
maximum
amount
of
credit
for
the
tax
year,
divided
by
16
twelve,
multiplied
by
the
number
of
months
in
the
tax
year
the
17
taxpayer
was
a
qualified
taxpayer.
18
4.
A
qualified
taxpayer
may
claim
the
credit
allowed
under
19
this
section
for
not
more
than
five
tax
years
from
the
date
20
the
qualified
taxpayer
received
a
bachelor’s
degree
from
an
21
approved
postsecondary
educational
institution.
22
5.
Any
credit
in
excess
of
the
taxpayer’s
liability
for
the
23
tax
year
is
not
refundable
and
shall
not
be
credited
to
the
tax
24
liability
for
any
following
year.
25
6.
In
order
to
be
eligible
for
the
credit
under
this
26
section,
the
qualified
taxpayer
shall
provide
the
department
27
with
proof
of
residency
and
proof
of
employment
in
this
state,
28
in
the
manner
and
form
prescribed
by
the
department.
The
29
department
may
also
require
documentation
from
the
qualified
30
taxpayer
supporting
any
payments
claimed
to
be
for
a
qualified
31
student
loan.
32
7.
This
section
is
repealed
January
1,
2024.
33
Sec.
3.
IMPLEMENTATION.
Notwithstanding
section
262.9,
34
subsection
38,
paragraph
“a”,
the
state
board
of
regents
shall
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H.F.
_____
notify
the
director
of
the
department
of
revenue
of
the
average
1
resident
undergraduate
tuition,
as
calculated
in
section
262.9,
2
subsection
38,
paragraph
“a”,
for
the
2013
calendar
within
3
thirty
days
of
the
effective
date
of
this
Act.
4
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
5
retroactively
to
January
1,
2014,
for
tax
years
beginning
on
6
or
after
that
date.
7
EXPLANATION
8
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
9
the
explanation’s
substance
by
the
members
of
the
general
assembly.
10
This
bill
creates
a
student
loan
tax
credit
available
11
against
the
state
individual
income
tax.
12
The
tax
credit
equals
50
percent
of
the
amount
paid
on
a
13
qualified
student
loan
by
a
qualified
taxpayer
during
a
tax
14
year,
not
to
exceed
20
percent
of
the
average
Iowa
tuition
15
each
year.
“Average
Iowa
tuition”
equals
the
average
resident
16
undergraduate
tuition
to
attend
the
university
of
Iowa,
Iowa
17
state
university,
or
the
university
of
northern
Iowa.
The
18
state
board
of
regents
is
required
to
calculate
the
average
19
Iowa
tuition
each
year
and
certify
the
amount
to
the
director
20
of
revenue
by
January
31
of
the
following
year.
21
“Qualified
student
loan”
is
defined
in
the
bill
as
any
22
loan
made,
insured,
or
guaranteed
under
Title
IV
of
the
23
federal
Higher
Education
Act
of
1965
directly
to
the
taxpayer
24
for
attendance
at
an
approved
postsecondary
educational
25
institution.
26
“Approved
postsecondary
educational
institution”
means
an
27
Iowa
community
college,
an
institution
of
higher
learning
under
28
the
control
of
the
state
board
of
regents,
or
a
nonprofit
29
accredited
private
institution
in
this
state
that
meets
certain
30
requirements
specified
in
the
bill.
31
“Qualified
taxpayer”
is
defined
in
the
bill
as
a
taxpayer
32
that
attended
an
approved
postsecondary
educational
33
institution,
received
a
bachelor’s
degree
from
an
approved
34
postsecondary
educational
institution
after
December
31,
2013,
35
-3-
LSB
5575YC
(2)
85
mm/sc
3/
4
H.F.
_____
is
a
resident
of
Iowa
for
the
entire
tax
year,
and
is
employed
1
in
Iowa.
A
taxpayer
shall
be
considered
employed
for
an
entire
2
month
if
the
taxpayer
was
employed
during
any
part
of
the
3
month.
4
If
a
taxpayer
is
not
a
qualified
taxpayer
for
the
entire
tax
5
year,
the
maximum
amount
of
the
credit
is
prorated
based
on
6
the
number
of
months
the
taxpayer
was
a
qualified
taxpayer.
A
7
qualified
taxpayer
is
not
allowed
to
claim
the
credit
for
more
8
than
five
tax
years
after
the
taxpayer
receives
a
bachelor’s
9
degree.
Any
credit
in
excess
of
the
taxpayer’s
tax
liability
10
is
not
refundable
and
shall
not
be
carried
forward
to
any
11
succeeding
tax
year.
12
A
qualified
taxpayer
is
required
to
provide
the
department
13
of
revenue
with
proof
of
residence
and
employment
in
14
this
state.
The
department
of
revenue
may
also
require
15
documentation
to
support
payments
claimed
to
be
for
a
qualified
16
student
loan.
The
student
loan
tax
credit
is
repealed
January
17
1,
2024.
18
The
bill
applies
retroactively
to
January
1,
2014,
for
tax
19
years
beginning
on
or
after
that
date.
20
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