This bill introduces a new individual income tax deduction for educational expenses related to career-related programs and apprenticeship programs at institutions of higher education. Specifically, taxpayers will be able to deduct expenses for instruction at institutions that do not qualify for college credit and for participation in registered apprenticeship programs. The bill outlines definitions for key terms such as "institution of higher education," "expenses," and "payment," ensuring clarity on what qualifies for the deduction.

Additionally, the bill specifies that payments made from Iowa education savings plans do not qualify for this deduction and mandates that the department adopt rules to implement the new provisions. Importantly, the bill includes a retroactive applicability clause, meaning it will apply to tax years beginning on or after January 1, 2025.

Statutes affected:
Introduced: 422.7