Text: SF02194 Text: SF02196 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 422.12F HOPE SCHOLARSHIP CREDIT. 1 2 1. The taxes imposed under this division, less the credits 1 3 allowed under sections 422.12 and 422.12B, shall be reduced by 1 4 a hope scholarship credit equal to twenty-five percent of the 1 5 federal hope scholarship credit provided in section 25A of the 1 6 Internal Revenue Code. Any credit in excess of the tax 1 7 liability is nonrefundable. 1 8 2. Married taxpayers who have filed joint federal returns 1 9 electing to file separate returns or to file separately on a 1 10 combined return form must determine the hope scholarship 1 11 credit under subsection 1 based upon their combined net income 1 12 and allocate the total credit amount to each spouse in the 1 13 proportion that each spouse's respective net income bears to 1 14 the total combined net income. Nonresidents or part-year 1 15 residents of Iowa must determine their hope scholarship credit 1 16 in the ratio of their Iowa source net income to their all 1 17 source net income. Nonresidents or part-year residents who 1 18 are married and elect to file separate returns or to file 1 19 separately on a combined return form must allocate the hope 1 20 scholarship credit between the spouses in the ratio of each 1 21 spouse's Iowa source net income to the combined Iowa source 1 22 net income of the taxpayers. 1 23 Sec. 2. This Act, being deemed of immediate importance, 1 24 takes effect upon enactment and applies retroactively to 1 25 January 1, 1998, for tax years beginning on or after that 1 26 date. 1 27 EXPLANATION 1 28 This bill creates a nonrefundable hope scholarship credit 1 29 that reduces an individual's state income tax by 25 percent of 1 30 the federal hope scholarship credit provided in section 25A of 1 31 the Internal Revenue Code. Those individuals whose federal 1 32 adjusted gross income is $50,000 ($100,000 for joint returns) 1 33 or more do not qualify for a federal hope scholarship credit. 1 34 The bill also provides for married taxpayers who have filed 1 35 joint federal returns electing to file separate state returns 2 1 or to file separately on a combined state return form, for 2 2 nonresidents or part-year residents of Iowa, and for 2 3 nonresidents or part-year residents who are married and elect 2 4 to file separate state returns or to file separately on a 2 5 combined state return form. 2 6 The bill takes effect upon enactment and applies 2 7 retroactively to January 1, 1998, for tax years beginning on 2 8 or after that date. 2 9 LSB 3469XS 77 2 10 kh/jl/8.2
Text: SF02194 Text: SF02196 Text: SF02100 - SF02199 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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