This bill modifies the existing tuition and textbook tax credit available against the individual income tax in Iowa. Specifically, it increases the tuition credit from 25 percent to 50 percent of the first $2,000 paid by taxpayers for each dependent in grades kindergarten through twelve who is receiving private instruction or attending an accredited or approved elementary or secondary school in Iowa. The bill also stipulates that all other credits allowed under this subsection must be deducted before applying the tuition credit. Additionally, the Department of Revenue is required to audit the tuition tax credit portion of taxpayers' returns during audits.

Furthermore, the bill includes a retroactive applicability provision, meaning that the changes will take effect from January 1, 2025, for tax years beginning on or after that date. This retroactive application allows taxpayers to benefit from the increased credit for the specified tax years.

Statutes affected:
Introduced: 422.12