Relating to certain education programs and tax credits and including effective date, applicability, and retroactive applicability provisions

Division I takes effect upon enactment and applies retroactively to tax years beginning on or after January 1, 2023. DIVISION II —— SCHOOL TUITION ORGANIZATION GRANTS.33 provide a school tuition organization tax credit against the individual income tax and corporate income tax, respectively, for contributions made by the taxpayer during the tax year to a school tuition organization.11B, the organization only provides tuition grants in amounts not to exceed the tuition amount for which the parent or guardian is responsible for payment following application of amounts paid using moneys from the student’s account in the education savings account fund. This provision applies to tuition grants made for school years beginning on or after July 1, 2023. The bill requires school tuition organizations to allocate percent of annual revenues as tuition grants within three years from January of the calendar year during which the revenues were received. This provision applies retroactively to contributions to a school tuition organization made on or after January 1, 2022. The bill also reduces the total annual amount of available school tuition organization tax credits for the calendar year beginning January 1, 2024, from $20 million to $17 million, and to $14 million for calendar years beginning on or after January 1, 2025. DIVISION III —— EDUCATION SAVINGS ACCOUNTS —— ADMINISTRATION OF FUNDS.11B, as enacted by 2023 Iowa Acts, House File 68, section 7, specifies that moneys remaining in a pupil’s individual account upon conclusion of the fiscal year shall remain in the pupil’s individual account for the payment of qualified educational expenses in future fiscal years during which the pupil participates in the program until the pupil becomes ineligible under the program or until the remaining amounts are transferred to the state general fund as required in that Code section. The bill provides that such remaining moneys are available for future consecutive fiscal years during which the pupil participates in the program. The bill further provides that if moneys remain in a pupil’s individual account upon conclusion of the fiscal year and the pupil does not participate in the program during the immediately succeeding fiscal year, the department of education or third-party entity shall close the pupil’s account in the fund, and transfer any remaining moneys in the account for deposit in the general fund of the state.11B by providing that if, prior to the end of the required attendance period of the school year, a pupil who receives an education savings account payment withdraws from enrollment in the nonpublic school or is expelled, the nonpublic school shall notify the department of education or third-party entity in writing of the pupil’s withdrawal or expulsion. Under the bill, upon receipt of a notice of expulsion, the department of education or third-party entity shall cease disbursements of remaining moneys in the pupil’s account, close the pupil’s account in the fund, and transfer any remaining moneys in the account for deposit in the general fund of the state. Additionally, upon receipt of a notice of withdrawal and a determination that the pupil did not enroll in a different nonpublic school in this state for the remainder of the school year, the department of education or third-party entity shall cease disbursements of remaining moneys in the pupil’s account in the fund, close the pupil’s account, and transfer any moneys remaining in the pupil’s account for deposit in the general fund of the state. Division III takes effect upon enactment and applies retroactively to January 24, 2023. DIVISION IV —— NONPUBLIC SCHOOL PUPIL TEXTBOOK SERVICES.1 authorizes each school board to adopt textbooks for the district, and to contract for and buy such books and any and all other necessary school supplies at contract prices, and to sell them to the pupils of their respective districts at cost, loan such textbooks to such pupils free, or rent them to pupils.1, subsections and 3, provides that textbooks adopted and purchased by a school district shall, to the extent funds are appropriated by the general assembly, be made available to pupils attending accredited nonpublic schools upon request of the pupil or the pupil’s parent under comparable terms as made available to pupils attending public schools.1 relating to a school district making such textbooks available to pupils attending nonpublic schools. Division IV takes effect July 1, 2025. DIVISION V —— EDUCATION SAVINGS ACCOUNTS —— CORRECTIONS.11B, as enacted by 2023 Iowa Acts, House File 68, section 7. Division V takes effect upon enactment and applies retroactively to January 24, 2023.