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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