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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