House File 2673      

                            AN ACT
RELATING TO THE INHERITANCE TAX ON ANY INTEREST IN A QUALIFIED
   TUITION PLAN.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 12D.9, Code 2007, is amended by adding
the following new subsection:
   NEW SUBSECTION.  3.  State inheritance tax treatment of
interests in Iowa educational savings plans shall be as
provided in section 450.4, subsection 10.  This subsection
shall apply to all Iowa educational savings plans existing on
or after July 1, 1998.
   Sec. 2.  Section 450.4, Code Supplement 2007, is amended by
adding the following new subsection:
   NEW SUBSECTION.  10.  On the value of any interest in a
qualified tuition plan, as defined in section 529 of the
Internal Revenue Code, to the same extent to which the value
is excluded from the decedent's gross estate for federal
estate tax purposes.  This subsection shall apply to all
qualified tuition plans that are in existence on or after July
1, 1998.


                                                            
                              PATRICK J. MURPHY
                              Speaker of the House


                                                            
                              JOHN P. KIBBIE
                              President of the Senate

   I hereby certify that this bill originated in the House and
is known as House File 2673, Eighty=second General Assembly.


                                                            
                              MARK BRANDSGARD
                              Chief Clerk of the House
Approved                , 2008


                           
CHESTER J. CULVER
Governor