A bill for an act relating to the Iowa educational savings plan trust by expanding the definition of qualified educational expenses and apprenticeship programs for purposes of withdrawals qualifying for an individual income tax exclusion, and including retroactive applicability provisions.(See SF 2259, SF 2440.)
Impact
If enacted, SSB3128 would redefine 'qualified education expenses' to encompass not only tuition fees but also the costs of career-related training that does not yield college credit. This change is expected to make educational savings plans more accessible and beneficial for those pursuing diverse career tracks, supporting state objectives for workforce development. The delineation of what constitutes an apprenticeship program would also include those recognized by the Iowa office of apprenticeship, thereby enhancing the relevance of state apprenticeship initiatives.
Summary
Senate Study Bill 3128 (SSB3128) proposes amendments to the Iowa educational savings plan trust, particularly concerning the categorization of qualified educational expenses and the inclusion of apprenticeship programs. The bill aims to broaden the scope of expenses that can be withdrawn from the educational savings plan (529 plan) to include costs associated with programs that do not necessarily qualify for college credit. This expansion is crucial for students pursuing vocational and non-traditional educational paths, enabling them to utilize their educational savings more flexibly.
Contention
Nonetheless, the bill has sparked some debate regarding its implications for tax revenue and the potential for creating a disparity in educational funding. Critics may argue that expanding withdrawals could affect the fiscal management of state education funding, particularly if a significant number of individuals utilize these exemptions. There may also be discussions on the adequacy of oversight for apprenticeship programs to ensure they meet quality standards, a concern that could arise among educational and labor organizations.
Replaced by
A bill for an act relating to the Iowa educational savings plan trust by expanding the definition of qualified educational expenses and apprenticeship programs for purposes of withdrawals qualifying for an individual income tax exclusion, and including retroactive applicability provisions.(Formerly SSB 3128; See SF 2440.)
Replaced by
A bill for an act relating to the Iowa educational savings plan trust by expanding the plan trust to include career-related programs approved by the Iowa office of apprenticeship for purposes of withdrawals qualifying for an individual income tax deduction, and including retroactive applicability provisions.(Formerly SF 2259, SSB 3128.)
A bill for an act creating a deduction available against the individual income tax for educational expenses at institutions of higher education for career-related programs and apprenticeship programs, and including retroactive applicability provisions.(See SF 379.)
A bill for an act creating a deduction available against the individual income tax for educational expenses at institutions of higher education for career-related programs and apprenticeship programs, and including retroactive applicability provisions.(Formerly SSB 1119.)
A bill for an act relating to the deduction of nursing facility expenses for purposes of the individual income tax, and including retroactive applicability provisions.
A bill for an act relating to the farm tenancy net income exclusion available against the individual income tax, and including effective date and retroactive applicability provisions.(Formerly HF 56.)
A bill for an act concerning the apportionment of certain business income of an airline or a qualified air freight forwarder for purposes of Iowa corporate income tax, and including retroactive applicability provisions.
A bill for an act relating to deducting excess business losses for purposes of the individual income tax, and including retroactive applicability provisions.
A bill for an act excluding interest income earned from banks and credit unions from the calculations of Iowa net income for purposes of the individual income tax, and including effective date and retroactive applicability provisions.
A bill for an act creating a state corporate income tax deduction for net controlled foreign corporation tested income, and including retroactive applicability provisions.(See SF 2292, SF 2492.)