Text: HF02582 Text: HF02584 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11D PRESCRIPTION DRUG TAX
1 2 CREDIT.
1 3 1. The taxes imposed under this division, less the credits
1 4 allowed under sections 422.12 and 422.12B, shall be reduced by
1 5 a prescription drug tax credit. The amount of the credit
1 6 equals twenty-five percent of the unreimbursed cost of
1 7 prescription drugs and insulin paid by the taxpayer during the
1 8 tax year. To qualify for the credit, the prescription drugs
1 9 or insulin must be prescribed for the taxpayer or for the
1 10 taxpayer's spouse or dependent and the taxpayer, spouse, or
1 11 dependent for which the prescription drugs or insulin is
1 12 prescribed must be at least sixty-two years of age during the
1 13 tax year.
1 14 For purposes of this section, "cost of prescription drugs
1 15 and insulin" means the same as are deductible under section
1 16 213 of the Internal Revenue Code.
1 17 2. Any credit in excess of the tax liability shall be
1 18 refunded. In lieu of claiming a refund, a taxpayer may elect
1 19 to have the overpayment shown on the taxpayer's final,
1 20 completed return credited to the tax liability for the
1 21 following taxable year.
1 22 3. If the credit under this section is claimed for a tax
1 23 year, the amount of unreimbursed costs of prescription drugs
1 24 and insulin used in the computation of the credit is not
1 25 deductible under section 422.9, subsection 2, for medical care
1 26 expenses under section 213 of the Internal Revenue Code.
1 27 Sec. 2. This Act applies retroactively to January 1, 2000,
1 28 for tax years beginning on or after that date.
1 29 EXPLANATION
1 30 This bill provides a refundable prescription drug tax
1 31 credit under the individual income tax. The credit equals 25
1 32 percent of the unreimbursed cost of prescription drugs and
1 33 insulin which are deductible as medical care expenses under
1 34 the Internal Revenue Code and which are prescribed for the
1 35 taxpayer or the taxpayer's spouse or dependent who is 62 or
2 1 older during the tax year. The credit is in lieu of an
2 2 itemized deduction for the costs of prescription drugs and
2 3 insulin.
2 4 The bill applies retroactively to January 1, 2000, for tax
2 5 years beginning on or after that date.
2 6 LSB 6261YH 78
2 7 mg/cf/24
Text: HF02582 Text: HF02584 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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