Summary of SSB 1119 (renumbered SF 379)
Overview
- Purpose: Create a deduction against Iowa individual income tax for educational expenses at institutions of higher education for career-related programs that do not qualify for college credit, and for participation in an apprenticeship program registered with the Iowa Office of Apprenticeship under Code 84D.
- Retroactivity: Applies to tax years beginning on or after January 1, 2025.
- Status: Committee report approving the bill; renumbered as SF 379.
Key Provisions
- Tax deduction: Taxpayers would be able to deduct certain qualifying education-related expenses from their individual income tax. The deduction covers:
- Expenses for instruction at an institution of higher education for career-related programs that do not qualify for college credit.
- Expenses or payments related to participation in an apprenticeship program registered with the Iowa Office of Apprenticeship (Code 84D).
- Definitions: The bill provides definitions for key terms, including “institution of higher education,” “expenses,” and “payment.”
- Retroactive applicability: The deduction would be available for tax years beginning on or after January 1, 2025.
Definitions (as described in the bill)
- Institution of higher education: Defined within the bill (text not fully provided here).
- Expenses: Defined within the bill (text not fully provided here).
- Payment: Defined within the bill (text not fully provided here).
Eligibility and Scope
- Eligible activities:
- Non-credit career-related programs pursued at institutions of higher education.
- Participation in registered apprenticeship programs under Code 84D.
- Interaction with existing incentives: The deduction applies to non-credit programs, distinct from any college credit-based credits. Specific interaction details (e.g., interaction with other credits or deductions) are not provided in the excerpt.
Impact and Stakeholders
- Affected individuals: Taxpayers paying for non-credit career-related education or participating in registered apprenticeships.
- Institutions and programs: Higher education institutions offering non-credit career-related courses and apprenticeship sponsors/registered programs under Code 84D may see increased participation.
- Tax administration: Requires guidance on how to claim the deduction and verification of eligible expenses/payments.
Procedural Timeline
- Introduced: February 13, 2025; referred to Workforce.
- Subcommittee: February 17–18, 2025 (meeting held February 18); recommendation to pass.
- Committee action: February 19, 2025; committee report approving the bill; renumbered as SF 379.
Notes
- The provided text does not specify the deduction amount, limits, or administrative procedures for claiming the deduction (e.g., required forms, income phaseouts, or interaction with standard deduction). Fiscal impact and implementation details would be clarified in the full bill or fiscal note.
