An act modifying the tuition and textbook tax credit available against the individual income tax, and including retroactive applicability provisions, the official text

House File 417 - Introduced HOUSE FILE 417 BY GUSTOFF A BILL FOR An Act modifying the tuition and textbook tax credit available 1 against the individual income tax, and including retroactive 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 2692YH (2) 91 jm/jh H.F. 417 Section 1. Section 422.12, subsection 2, paragraph b, Code 1 2025, is amended to read as follows: 2 b. A tuition credit equal to twenty-five fifty percent 3 of the first two thousand dollars which the taxpayer has 4 paid to others for each dependent in grades kindergarten 5 through twelve, for tuition and textbooks of each dependent 6 who is receiving private instruction or who is attending an 7 elementary or secondary school situated in Iowa, which school 8 is accredited or approved under section 256.11 , which is not 9 operated for profit, and which adheres to the provisions 10 of the federal Civil Rights Act of 1964 and chapter 216 . 11 Notwithstanding any other provision, all other credits allowed 12 under this subsection shall be deducted before the tuition 13 credit under this paragraph. The department, when conducting 14 an audit of a taxpayer’s return, shall also audit the tuition 15 tax credit portion of the tax return. 16 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 17 retroactively to January 1, 2025, for tax years beginning on 18 or after that date. 19 EXPLANATION 20 The inclusion of this explanation does not constitute agreement with 21 the explanation’s substance by the members of the general assembly. 22 Current law establishes a tuition credit equal to 25 percent 23 of the first $2,000 which the taxpayer has paid to others for 24 each dependent in grades kindergarten through 12, for tuition 25 and textbooks of each dependent who is receiving private 26 instruction or who is attending an elementary or secondary 27 school situated in Iowa, which school is accredited or approved 28 under Code section 256.11, which is not operated for profit, 29 and which adheres to the provisions of the federal Civil Rights 30 Act of 1964 and Code chapter 216 (Iowa civil rights Act of 31 1965). This bill increases the amount of this tax credit to 50 32 percent of the first $2,000. The bill applies retroactively to 33 January 1, 2025, for tax years beginning on or after that date. 34 -1- LSB 2692YH (2) 91 jm/jh 1/ 1