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House File 2296

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  422.12A  DONATED COMPUTER TAX
  1  2 CREDIT – REFUND.
  1  3    1.  The taxes imposed under this division less the credits
  1  4 allowed under sections 422.11A, 422.12, and 422.12B shall be
  1  5 reduced by a tax credit for a new computer or used computer,
  1  6 which is not older than seven years, donated to a public or
  1  7 nonpublic elementary or secondary school situated in the
  1  8 state, which school is accredited or approved under section
  1  9 256.11, which is not operated for profit, and which adheres to
  1 10 the provisions of the federal Civil Rights Act of 1964 and
  1 11 chapter 216.  The amount of the credit equals one hundred
  1 12 fifty percent of the net acquisition cost of the new computer
  1 13 donated or two hundred percent of the lesser of the market
  1 14 value or depreciated value of the used computer donated.  If a
  1 15 credit is allowed under this section, a deduction under
  1 16 section 170(e)(6) of the Internal Revenue Code shall not be
  1 17 allowed to the extent the deduction is for a computer for
  1 18 which a credit was allowed under this section.  For purposes
  1 19 of this section, a "new computer" is one that is first used by
  1 20 the donee.
  1 21    2.  An individual may claim the donated computer tax credit
  1 22 allowed a partnership, limited liability company, S
  1 23 corporation, or estate or trust electing to have the income
  1 24 taxed directly to the individual.  The amount claimed by the
  1 25 individual shall be based upon the pro rata share of the
  1 26 individual's earnings of the partnership, limited liability
  1 27 company, S corporation, or estate or trust.
  1 28    3.  Any credit in excess of the tax liability shall be
  1 29 refunded.  In lieu of claiming a refund, a taxpayer may elect
  1 30 to have the overpayment shown on the taxpayer's final,
  1 31 completed return credited to the tax liability for the
  1 32 following tax year.
  1 33    Sec. 2.  Section 422.33, Code Supplement 1997, is amended
  1 34 by adding the following new subsection:
  1 35    NEW SUBSECTION.  8.  a.  The taxes imposed under this
  2  1 division shall be reduced by a tax credit for a new computer
  2  2 or used computer, which is not older than seven years, donated
  2  3 to a public or nonpublic elementary or secondary school
  2  4 situated in the state, which school is accredited or approved
  2  5 under section 256.11, which is not operated for profit, and
  2  6 which adheres to the provisions of the federal Civil Rights
  2  7 Act of 1964 and chapter 216.  The amount of the credit equals
  2  8 one hundred fifty percent of the net acquisition cost of the
  2  9 new computer donated or two hundred percent of the lesser of
  2 10 the market value or depreciated value of the used computer
  2 11 donated.  If a credit is allowed under this subsection, a
  2 12 deduction under section 170(e)(6) of the Internal Revenue Code
  2 13 shall not be allowed to the extent the deduction is for a
  2 14 computer for which a credit was allowed under this subsection.
  2 15 For purposes of this subsection, a "new computer" is one first
  2 16 used by the donee.
  2 17    b.  Any credit in excess of the tax liability shall be
  2 18 refunded.  In lieu of claiming a refund, a taxpayer may elect
  2 19 to have the overpayment shown on the taxpayer's final,
  2 20 completed return credited to the tax liability for the
  2 21 following tax year.
  2 22    Sec. 3.  EFFECTIVE AND APPLICABILITY DATES.  This Act,
  2 23 being deemed of immediate importance, takes effect upon
  2 24 enactment and applies retroactively to January 1, 1998, for
  2 25 tax years beginning on or after that date.  
  2 26                           EXPLANATION 
  2 27    The bill allows individual and corporate income tax credits
  2 28 for the donation of computers to public or nonpublic
  2 29 elementary or secondary schools.  The amount of the credit
  2 30 equals 1.5 times the net acquisition cost of a new computer
  2 31 donated and 2.0 times the lesser of the market value or
  2 32 depreciated value of a used computer donated.  The credit in
  2 33 excess of the tax is refundable or the taxpayer may use it the
  2 34 following year.
  2 35    The bill takes effect upon enactment and applies
  3  1 retroactively to January 1, 1998, for tax years beginning on
  3  2 or after that date.  
  3  3 LSB 4088HH 77
  3  4 mg/jl/8
     

Text: HF02295                           Text: HF02297
Text: HF02200 - HF02299                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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