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
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