SF 2301 – College savings plans operated by non-profits
SF 2306 – Facilitating natural disaster response
FLOOR ACTION:
SF 2301 allows nonprofits to establish a 529 college savings account for individual savings plans. The legislation encourages college savings for low-income and at-risk students. Iowa does not currently allow nonprofits to administer college savings accounts. As a result, Iowa schools organize their plans in other states. An amendment adopted on the floor specified that a donor to a college savings plan operated by a nonprofit cannot claim a tax deduction for a contribution that is designated to benefit a dependent or any other single beneficiary. Nonprofits are already prohibited by federal law from accepting donations from individuals to benefit the donor or the donor’s family.
[3/17: 49-0 (Bertrand absent)]
COMMITTEE ACTION:
SF 2306 would streamline the process for out-of-state companies that repair critical infrastructure in response to natural disasters in the Iowa. The bill is based on model legislation developed by the National Conference of State Legislatures and has so far been adopted in 22 states.
The bill helps out-of-state businesses by removing the requirements for the business or its employees to register and license themselves as if they were residents or establishing a business in Iowa. This removes responsibilities related to paying income taxes for the time they are located in the state and being subject to sales and use taxes related to bringing equipment and property into the state.
The bill only applies to presidential or gubernatorial declared disasters or states of emergency. The out-of-state businesses that enter the state to repair critical infrastructure pursuant to this legislation must register with the Secretary of State and must leave the state after 60 calendar days following the end of the designated state of disaster or emergency. Otherwise, they will be required to meet all licensing and registration requirements of resident businesses and employees.
[3/17: short form (Anderson absent)]
