Senate File 89 - Introduced SENATE FILE 89 BY FEENSTRA , JOHNSON , BARTZ , KAPUCIAN , BACON , SEYMOUR , BOETTGER , ANDERSON , SMITH , and GREINER A BILL FOR An Act providing an individual income tax credit for certain 1 supplies purchased by a teacher and including retroactive 2 applicability provisions. 3 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 4 TLSB 1708XS (3) 84 tw/sc

S.F. 89 Section 1. NEW SECTION . 422.11Y Teacher expense credit. 1 1. The taxes imposed under this division, less the credits 2 allowed under section 422.12, shall be reduced by a teacher 3 expense credit equal to the first two hundred fifty dollars 4 of the cost incurred to purchase supplies by the taxpayer to 5 assist the taxpayer in teaching at an elementary or secondary 6 school situated in Iowa, which school is accredited under 7 section 256.11. To qualify for the credit, the costs must be 8 nonreimbursable from any source. If the cost incurred has been 9 deducted in computing federal adjusted gross income, the amount 10 of such deduction shall be added in determining net income 11 under section 422.7. Any credit in excess of the tax liability 12 is nonrefundable. 13 2. As used in this section, “supplies” includes but is 14 not limited to paper supplies, bulletin boards, books, maps, 15 charts, computer software but not hardware, and other items 16 directly used by the taxpayer as a teacher. The cost incurred 17 to purchase supplies for which a tax credit may be received 18 under this section shall not be used by a school district to 19 supplement its costs of instructional materials. 20 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 21 retroactively to January 1, 2011, for tax years beginning on 22 or after that date. 23 EXPLANATION 24 This bill provides an income tax credit of up to $250 for 25 teachers that incur expenses for supplies directly used by 26 them in teaching at accredited elementary or secondary schools 27 in Iowa. To qualify, the expenses must be nonreimbursable 28 from any source. If the expenses were deducted in computing 29 federal adjusted gross income, the deduction shall be added 30 in determining Iowa net income. These supplies include paper 31 supplies, bulletin boards, books, maps, charts, computer 32 software but not hardware, and other similar items directly 33 used by the taxpayer as a teacher. The cost incurred to 34 purchase supplies for which a tax credit may be received under 35 -1- LSB 1708XS (3) 84 tw/sc 1/ 2

S.F. 89 this Code section shall not be used by a school district to 1 supplement its costs of instructional materials. 2 The bill applies retroactively to January 1, 2011, for tax 3 years beginning on or after that date. 4 -2- LSB 1708XS (3) 84 tw/sc 2/ 2