This bill introduces a new individual income tax deduction for educational expenses related to career-related programs at institutions of higher education and for participation in registered apprenticeship programs. Specifically, taxpayers can deduct expenses for instruction that does not qualify for college credit and for apprenticeship programs recognized by the Iowa office of apprenticeship. 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 the department to adopt rules for implementation. Importantly, the provisions of this bill are retroactively applicable to tax years beginning on or after January 1, 2025, allowing taxpayers to benefit from this deduction for past expenses incurred in the specified timeframe.

Statutes affected:
Introduced: 422.7