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