Text: SF00095 Text: SF00097 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. Section 422.7, Code 1995, is amended by adding
1 2 the following new subsection:
1 3 NEW SUBSECTION. 18. Subtract an amount paid by the
1 4 taxpayer for medical and health care insurance or coverage for
1 5 the taxpayer, the taxpayer's spouse, or the taxpayer's
1 6 dependent.
1 7 Sec. 2. Section 422.9, subsection 2, Code 1995, is amended
1 8 by adding the following new paragraph:
1 9 NEW PARAGRAPH. i. If the taxpayer has a deduction for
1 10 medical care expenses under section 213 of the Internal
1 11 Revenue Code, the taxpayer shall recompute for the purposes of
1 12 this subsection the amount of the deduction under section 213
1 13 by excluding from medical care, as defined in section 213, the
1 14 amount subtracted under section 422.7, subsection 18.
1 15 Sec. 3. Section 422.12B, subsection 1, Code 1995, is
1 16 amended to read as follows:
1 17 1. The taxes imposed under this division less the credits
1 18 allowed under section 422.12 shall be reduced by an earned
1 19 income credit equal to six and one-half percent of the federal
1 20 basic earned income credit and the health insurance credit
1 21 provided in section 32 of the Internal Revenue Code. Any
1 22 credit in excess of the tax liability is nonrefundable. In
1 23 computing the health insurance credit under section 32 of the
1 24 Internal Revenue Code, the amount subtracted under section
1 25 422.7, subsection 18, shall not be included.
1 26 Sec. 4. This Act applies retroactively to January 1, 1995,
1 27 for tax years beginning on or after that date.
1 28 EXPLANATION
1 29 This bill allows for an amount paid by taxpayers for
1 30 medical and health care insurance or coverage for the
1 31 taxpayer, spouse, or dependent to be subtracted in computing
1 32 net income for state individual income tax. This bill also
1 33 provides that the amount of the state medical and health
1 34 expense premium deduction allowed is not to be used in
1 35 computing the federal medical deduction for state tax
2 1 purposes. In addition, the premium deduction taken for
2 2 dependents is not allowed in computing the federal health
2 3 insurance credit portion of the earned income tax credit.
2 4 The bill is retroactively applicable to January 1, 1995,
2 5 for tax years beginning on or after that date.
2 6 LSB 1961SS 76
2 7 mj/sc/14
Text: SF00095 Text: SF00097 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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