Iowa 2025-2026 Regular Session

Iowa Senate Bill SSB1119

Introduced
2/13/25  

Caption

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.)

Impact

The legislation impacts Iowa's tax code, specifically modifying Section 422.7 to introduce new provisions regarding deductions for educational expenses. This change may incentivize residents to engage in career-related educational activities, potentially leading to a more skilled workforce in critical industries. With retroactive applicability starting from January 1, 2025, taxpayers will be able to deduct eligible expenses for the current tax year and beyond, which may influence individual financial planning and educational choices.

Summary

Senate Study Bill 1119 aims to provide a deduction against individual income tax for educational expenses related to institutions of higher education and registered apprenticeship programs. This bill is designed to support individuals pursuing career-related education that may not lead to college credits, thereby expanding access to various educational pathways that enhance workforce skills. By enabling taxpayers to deduct these expenses, the bill seeks to address the financial barriers associated with career training and education.

Contention

While the bill presents potential benefits for taxpayers, it may also raise concerns among local education institutions. The definition of what constitutes an eligible institution and allowable expenses is crucial, and there could be debates over how strictly these criteria are enforced. Additionally, the focus on career-related programs that do not qualify for college credits might lead to discussions about the value and recognition of such programs in the educational landscape, particularly in relation to traditional higher education pathways.

Companion Bills

IA SF379

Replaced by 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.)

Previously Filed As

IA SF379

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.)

IA HF31

A bill for an act creating the new resident and new graduate tax credits, available against the individual income tax, and including retroactive applicability provisions.

IA HF2225

A bill for an act creating a new graduate nonresident tuition tax credit available against the individual income tax, and including retroactive applicability provisions.

IA HF417

A bill for an act modifying the tuition and textbook tax credit available against the individual income tax, and including retroactive applicability provisions.

IA SF402

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.

IA HF1026

A bill for an act relating to the adoption tax credit available against the individual income tax, and including effective date and retroactive applicability provisions.(Formerly HF 965.)

IA HF958

A bill for an act creating a premarital counseling tax credit available against the individual income tax, and including retroactive applicability provisions.

IA HF624

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.)

IA SF2060

A bill for an act relating to eligibility standards for certain education programs and tax provisions based on religious or sectarian use or purpose, and including retroactive applicability provisions.(See SF 2231.)

IA HSB306

A bill for an act modifying the research activities tax credit available against the individual and corporate income taxes, and including effective date and retroactive applicability provisions.

Similar Bills

CA AB850

Institutional Debt Transparency Act.

NJ A2359

Requires undergraduate students to file degree plan and requires institutions of higher education and certain propriety institutions to develop pathway systems to graduation.

NJ S1480

Requires undergraduate students to file degree plan and requires institutions of higher education and certain proprietary institutions to develop pathway systems to graduation.

NJ S1504

Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.

NJ A2133

Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.

TX HB5180

Relating to the issuance of a diploma to a student graduating from a public institution of higher education that has undergone a merger, acquisition, or name change.

CA AB2771

California Private Postsecondary Education Act of 2009.

CA SB372

California Private Postsecondary Education Act of 2009: exemptions.