Bills › 91st General Assembly
Creating a new graduate nonresident tuition tax credit available against the individual income tax, and including retroactive applicability provisions
Sponsored by Rep. Brett Barker (R), Rep. Michael R. Bergan (R), Rep. David L. Blom (R), Rep. Dr. Steven P. Bradley (R), Rep. Jason Gearhart (R), Rep. Thomas Gerhold (R), Rep. Bill Gustoff (R), Rep. Heather Hora (R), Rep. Chad Ingels (R), Rep. Craig P. Johnson (R), Rep. Wendy Larson (R), Rep. Shannon Latham (R), Rep. Norlin G. Mommsen (R), Rep. David Sieck (R), Rep. Jennifer J. Smith (R), Rep. Mike Vondran (R), Rep. Ryan Weldon (R), Rep. Sam Wengryn (R), Rep. Craig Steven Williams (R), Rep. Devon Wood (R), Rep. Adam Zabner (D)
Topics:K–12 educationHigher educationTaxesIncome taxesTax credits & incentives
Where it is now
- Done: IntroducedJanuary 30, 2026
- Stopped: SubcommitteeDied when the General Assembly ended
- Next: House committeeFunnel: by February 20, 2026
- Next: Passes the House
- Next: Senate committeeFunnel: by March 20, 2026
- Next: Passes the Senate
- Next: To the Governor
- Next: Signed into law
Died when the session ended The General Assembly adjourned on October 2, 2026. Bills that didn’t pass both chambers died. What’s a funnel?
What’s in it
This bill creates a new graduate nonresident tuition tax credit available against the individual income tax. The bill defines “institution” to mean an institution of higher education governed by the board of regents. The bill defines “new graduate” to mean an individual who is a graduate of an institution within three years of claiming the credit, who has been a resident of and employed in this state since graduating, and who is employed as a health care professional, teacher, licensed veterinarian, or professional engineer in this state.
Read the full explanation
The bill specifies that a new graduate may claim the new graduate nonresident tuition tax credit that is equal to 100 percent of the difference between the base tuition paid by the new graduate as a nonresident student enrolled at an institution and the base tuition amount paid by a resident student at the same institution for the same school year during the years of attendance by the new graduate. The bill requires the board of regents to post on the board of regents’ internet site the base tuition amounts for nonresident and resident students at each institution from at least the previous 10-year period. Any new graduate nonresident tax credit in excess of the tax liability is not refundable. The bill specifies any credit in excess of the tax liability for the tax year may be credited to the tax liability for the following five tax years or until depleted, whichever is the earlier. However, any credit in excess of tax liability shall not be credited to or deplete future tax liability on the return of a new graduate who becomes a nonresident. The bill applies retroactively to tax years beginning on or after January 1, 2026.
From the explanation printed with the bill as introduced, written by the Legislative Services Agency. Amendments adopted later aren’t reflected. Full bill text
Iowa Code it changes
Creates§422.12R
Read from the bill as introduced. Each links to every bill touching that chapter of the Iowa Code. How the Code works
Lobbying
3 for · 0 against · 12 undecided · Who →