Senate File 179
SENATE FILE
BY SCHUERER, BOETTGER, SIEVERS,
BEHN, VEENSTRA, GASKILL,
ANGELO, REHBERG, ZIEMAN, and
HOUSER
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act creating a super ethanol=powered motor vehicle purchase
2 tax credit for individual taxpayers, and providing a
3 retroactive applicability date.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
5 TLSB 1001XS 80
6 da/cls/14
PAG LIN
1 1 Section 1. NEW SECTION. 422.11H SUPER ETHANOL=POWERED
1 2 MOTOR VEHICLE PURCHASE TAX CREDIT.
1 3 1. As used in this section:
1 4 a. "Motor vehicle" means the same as defined in section
1 5 321.1.
1 6 b. "Super ethanol=powered motor vehicle" means a motor
1 7 vehicle that is powered using a motor vehicle fuel as defined
1 8 in section 214A.1 that contains at least eighty=five percent
1 9 ethanol, according to standards established by rules adopted
1 10 by the department of agriculture and land stewardship pursuant
1 11 to chapter 214A.
1 12 2. The taxes imposed under this division, less the credits
1 13 allowed under sections 422.12 and 422.12B, shall be reduced by
1 14 a super ethanol=powered motor vehicle purchase tax credit for
1 15 the tax year in which the taxpayer purchases a new or used
1 16 super ethanol=powered motor vehicle from a retail seller of
1 17 new or used motor vehicles. The tax credit equals the lesser
1 18 of one hundred dollars or the amount paid by the taxpayer less
1 19 any discounts and trade=ins.
1 20 3. a. Any credit in excess of the tax liability shall be
1 21 refunded. In lieu of claiming a refund, a taxpayer may elect
1 22 to have the overpayment shown on the taxpayer's final,
1 23 completed return credited to the tax liability for the
1 24 following tax year.
1 25 b. Married taxpayers who have filed joint federal returns
1 26 electing to file separate returns or to file separately on a
1 27 combined return form must determine the super ethanol=powered
1 28 motor vehicle purchase tax credit based upon their combined
1 29 net income and allocate the total credit amount to each spouse
1 30 in the proportion that each spouse's respective net income
1 31 bears to the total combined net income. Nonresidents or part=
1 32 year residents of Iowa must determine their super ethanol=
1 33 powered motor vehicle purchase tax credit in the ratio of
1 34 their Iowa=source net income to their all=source net income.
1 35 Nonresidents or part=year residents who are married and elect
2 1 to file separate returns or to file separately on a combined
2 2 return form must allocate the super ethanol=powered motor
2 3 vehicle purchase tax credit between the spouses in the ratio
2 4 of each spouse's Iowa=source net income to the combined Iowa=
2 5 source net income of the taxpayers. An individual may claim
2 6 the super ethanol=powered motor vehicle purchase tax credit
2 7 allowed a partnership, S corporation, limited liability
2 8 company, or estate or trust electing to have the income taxed
2 9 directly to the individual. The amount claimed by the
2 10 individual shall be based upon the pro rata share of the
2 11 individual's earnings of the partnership, S corporation,
2 12 limited liability company, or estate or trust.
2 13 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
2 14 retroactively to tax years beginning on or after January 1,
2 15 2003.
2 16 Sec. 3. Section 422.11H is repealed on January 1, 2008.
2 17 EXPLANATION
2 18 This bill establishes a super ethanol=powered motor vehicle
2 19 purchase tax credit for individual taxpayers. The bill
2 20 provides a tax credit equal to the lesser of $100 or the
2 21 amount paid by the taxpayer less discounts and trade=ins for
2 22 individual taxpayers who purchase a new or used motor vehicle,
2 23 subject to registration, powered with a motor vehicle fuel
2 24 containing at least 85 percent ethanol. The bill provides for
2 25 refunding the tax credit in cases where the credit is in
2 26 excess of a tax liability and provides for allocation in cases
2 27 concerning married taxpayers filing separately on a combined
2 28 return, nonresidents, and part=year residents. The taxpayer
2 29 is also entitled to the credit if the taxpayer is a partner,
2 30 shareholder, or member of a partnership, S corporation, or
2 31 estate or trust which is entitled to the credit. The bill
2 32 provides that the tax credit applies retroactively to January
2 33 1, 2003, and is repealed on January 1, 2008.
2 34 LSB 1001XS 80
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