Text: HSB00775 Text: HSB00777 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11D SCHOLARSHIP TAX CREDIT.
1 2 The taxes imposed under this division, less the credits
1 3 under sections 422.12 and 422.12B, shall be reduced by a
1 4 scholarship tax credit equal to fifty percent of the first one
1 5 thousand dollars contributed to a scholarship fund. For the
1 6 taxpayer to receive the tax credit, the scholarship fund to
1 7 which the taxpayer contributes must be administered by a
1 8 nonprofit organization that is exempt from federal taxation
1 9 under section 501(c)(3) of the Internal Revenue Code and that
1 10 allocates at least eighty-five percent of such organization's
1 11 annual revenue for educational scholarships or tuition grants
1 12 to children in this state to allow them to receive an
1 13 education.
1 14 Any credit in excess of the tax liability for the tax year
1 15 may be credited to the tax liability for the following four
1 16 tax years or until depleted, whichever occurs earlier.
1 17 An individual may claim a scholarship tax credit allowed a
1 18 partnership, limited liability company, S corporation, estate,
1 19 or trust electing to have the income taxed directly to the
1 20 individual. The amount claimed by the individual shall be
1 21 based upon the pro rata share of the individual's earnings of
1 22 the partnership, limited liability company, S corporation,
1 23 estate, or trust.
1 24 Sec. 2. Section 422.33, Code Supplement 1999, is amended
1 25 to read by adding the following new subsection:
1 26 NEW SUBSECTION. 9. The taxes imposed under this division
1 27 shall be reduced by a scholarship tax credit equal to fifty
1 28 percent of the first one thousand dollars contributed to a
1 29 scholarship fund. For the taxpayer to receive the tax credit,
1 30 the scholarship fund to which the taxpayer contributes must be
1 31 administered by a nonprofit organization that is exempt from
1 32 federal taxation under section 501(c)(3) of the Internal
1 33 Revenue Code and that allocates at least eighty-five percent
1 34 of such organization's annual revenue for educational
1 35 scholarships or tuition grants to children in this state to
2 1 allow them to receive an education.
2 2 Any credit in excess of the tax liability for the tax year
2 3 may be credited to the tax liability for the following four
2 4 tax years or until depleted, whichever occurs earlier.
2 5 Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
2 6 retroactively to January 1, 2000, for tax years beginning on
2 7 or after that date.
2 8 EXPLANATION
2 9 This bill provides for an individual and corporate income
2 10 tax credit equal to 50 percent of the first $1,000 contributed
2 11 to a scholarship fund. The scholarship fund must be
2 12 administered by a nonprofit organization exempt from federal
2 13 income tax and the organization must allocate 85 percent of
2 14 its annual revenue for scholarships or tuition grants to
2 15 children in this state.
2 16 The bill applies retroactively to January 1, 2000, for tax
2 17 years beginning on or after that date.
2 18 LSB 7133HC 78
2 19 mg/cls/14
Text: HSB00775 Text: HSB00777 Text: HSB00700 - HSB00799 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
© 2000 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Fri Mar 24 03:36:01 CST 2000
URL: /DOCS/GA/78GA/Legislation/HSB/00700/HSB00776/000323.html
jhf