House File 474
HOUSE FILE
BY ALONS
Passed House, Date Passed Senate, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act expanding the tuition tax credit under the individual
2 income tax to include tuition and textbook expenses at an
3 elementary or secondary school situated outside of Iowa
4 including a retroactive applicability date provision.
5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
6 TLSB 2862YH 80
7 mg/cl/14
PAG LIN
1 1 Section 1. Section 422.12, subsection 2, Code 2003, is
1 2 amended to read as follows:
1 3 2. A tuition credit equal to twenty=five percent of the
1 4 first one thousand dollars which the taxpayer has paid to
1 5 others for each dependent in grades kindergarten through
1 6 twelve, for tuition and textbooks of each dependent in
1 7 attending an elementary or secondary school situated in Iowa,
1 8 which school is accredited or approved under section 256.11,
1 9 which is not operated for profit, and which adheres to the
1 10 provisions of the federal Civil Rights Act of 1964 and chapter
1 11 216 or in attending an elementary or secondary school situated
1 12 outside Iowa, which school is accredited or approved by that
1 13 state, which is not operated for profit, and which adheres to
1 14 the provisions of the federal Civil Rights Act of 1964. As
1 15 used in this subsection, "textbooks" means books and other
1 16 instructional materials and equipment used in elementary and
1 17 secondary schools in teaching only those subjects legally and
1 18 commonly taught in public elementary and secondary schools in
1 19 this the state where the school is situated and does not
1 20 include instructional books and materials used in the teaching
1 21 of religious tenets, doctrines, or worship, the purpose of
1 22 which is to inculcate those tenets, doctrines, or worship.
1 23 "Textbooks" includes books or materials used for
1 24 extracurricular activities including sporting events, musical
1 25 or dramatic events, speech activities, driver's education, or
1 26 programs of a similar nature. Notwithstanding any other
1 27 provision, all other credits allowed under this section and
1 28 section 422.12B shall be deducted before the tuition credit
1 29 under this subsection. The department, when conducting an
1 30 audit of a taxpayer's return, shall also audit the tuition tax
1 31 credit portion of the tax return.
1 32 As used in this subsection, "tuition" means any charges for
1 33 the expenses of personnel, buildings, equipment and materials
1 34 other than textbooks, and other expenses of elementary or
1 35 secondary schools which relate to the teaching only of those
2 1 subjects legally and commonly taught in public elementary and
2 2 secondary schools in this the state where the school is
2 3 situated and which do not relate to the teaching of religious
2 4 tenets, doctrines, or worship, the purpose of which is to
2 5 inculcate those tenets, doctrines, or worship. "Tuition"
2 6 includes those expenses which relate to extracurricular
2 7 activities including sporting events, musical or dramatic
2 8 events, speech activities, driver's education, or programs of
2 9 a similar nature.
2 10 Sec. 2. APPLICABILITY DATE. This Act applies
2 11 retroactively to January 1, 2003, for tax years beginning on
2 12 or after that date.
2 13 EXPLANATION
2 14 This bill expands the tuition tax credit under the
2 15 individual income tax to include nonpublic schools situated
2 16 outside Iowa. The present credit equals 25 percent of the
2 17 first $1,000 spent for each dependent to attend a nonpublic
2 18 elementary or secondary school in Iowa.
2 19 The bill applies starting with tax years beginning on or
2 20 after January 1, 2003.
2 21 LSB 2862YH 80
2 22 mg/cl/14.1