Text: SF02261 Text: SF02263 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. NEW SECTION. 422.11C TEACHER TAX 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 teacher tax credit equal to one thousand two hundred fifty 1 5 dollars. To be eligible for the credit, a teacher must fill a 1 6 teaching assignment in a shortage area requiring a specific 1 7 teaching endorsement in the state. The credit is for the tax 1 8 year in which the teacher first started the assignment. The 1 9 teacher may receive the teacher tax credit for each of the two 1 10 tax years following the tax year the teacher started the 1 11 assignment. However, the teacher's eligibility for the credit 1 12 for each of these years is dependent on the teacher's 1 13 continued employment in the same teaching assignment through 1 14 the end of the tax year. 1 15 2. The director of the department of education shall 1 16 annually designate teaching shortage areas by the teaching 1 17 endorsements required. The director shall periodically 1 18 conduct a survey of school districts and approved practitioner 1 19 preparation programs to determine current shortage areas and 1 20 predict future shortage areas. The department of education 1 21 shall annually determine the teaching shortage areas in which 1 22 new employees will qualify for tax credit eligibility 1 23 certificates. 1 24 3. A school district may apply to the department of 1 25 education on an annual basis, not later than May 1, for a 1 26 maximum of three tax credit eligibility certificates that may 1 27 be awarded to new employees teaching in a shortage area or 1 28 awarded for the continuation of a teacher in the second or 1 29 third year of a teacher in the shortage area assignment. The 1 30 department of education shall award certificates based upon 1 31 the district's enrollment and shortage areas. Shortages in 1 32 school districts with the smallest enrollment shall receive 1 33 the highest priority. 1 34 The employing school district of a teacher in a teaching 1 35 shortage area must verify to the department of education that 2 1 the individual awarded the certificate is filling a teaching 2 2 assignment in a teaching shortage area in the district, is 2 3 properly licensed for the assignment, does not hold a 2 4 conditional or temporary license, and is employed full-time in 2 5 the assignment. 2 6 The taxpayer must file the certificate of eligibility with 2 7 the taxpayer's individual income tax return in order to claim 2 8 the teacher tax credit. The certificate must be signed by the 2 9 superintendent of the district and appropriately notarized. 2 10 The certificate shall contain the taxpayer's name, address, 2 11 tax identification number, the amount of the credit, and the 2 12 tax year for which the certificate applies. 2 13 The departments of education and revenue and finance shall 2 14 each adopt rules to jointly administer this section. 2 15 4. Any teacher tax credit in excess of the tax liability 2 16 imposed by section 422.5 less the credits allowed under 2 17 sections 422.12 and 422.12B for the tax year shall be refunded 2 18 with interest computed under section 422.25. An individual 2 19 who is not otherwise required to file an Iowa income tax 2 20 return under section 422.13 must file a state individual 2 21 income tax return in order to claim the teacher tax credit. 2 22 Sec. 2. NEW SECTION. 422.11D ENGINEER TAX CREDIT. 2 23 1. The taxes imposed under this division, less the credits 2 24 allowed under sections 422.12 and 422.12B, shall be reduced by 2 25 an engineer tax credit equal to two thousand dollars. To be 2 26 eligible for the tax credit, the taxpayer must be an engineer 2 27 filling a new engineering position in Iowa with an employer 2 28 that is doing business in this state, be licensed as an 2 29 engineer in this state, and have completed an engineering 2 30 degree within five years before the time the taxpayer starts 2 31 employment in the new engineering position in Iowa. The 2 32 credit is for the tax year in which the taxpayer is first 2 33 employed in the engineering position. The taxpayer may 2 34 receive the engineer tax credit for each of the two tax years 2 35 following the tax year in which the taxpayer was first 3 1 employed in the engineering position. However, the taxpayer's 3 2 eligibility for the credit for each of these years is 3 3 dependent on the engineer's continued employment through the 3 4 end of the tax year in the engineering position for the same 3 5 employer. 3 6 2. To be eligible for the engineer tax credit, the 3 7 taxpayer's employer must submit verification of eligibility to 3 8 the department of economic development. If the taxpayer meets 3 9 the criteria for eligibility, the department of economic 3 10 development shall issue to the taxpayer a certification of 3 11 eligibility for the engineer tax credit. The certification 3 12 shall contain the taxpayer's name, address, tax identification 3 13 number, the amount of the credit, and tax year for which the 3 14 certificate applies. The taxpayer must file the certificate 3 15 of eligibility with the taxpayer's individual income tax 3 16 return in order to claim the engineer tax credit. The 3 17 departments of economic development and revenue and finance 3 18 shall each adopt rules to jointly administer this section. 3 19 3. Any engineer tax credit in excess of the tax liability 3 20 imposed by section 422.5 less the credits allowed under 3 21 sections 422.12 and 422.12B for the tax year shall be refunded 3 22 with interest computed under section 422.25. An individual 3 23 who is not otherwise required to file an Iowa income tax 3 24 return under section 422.13 must file a state individual 3 25 income tax return in order to claim the engineer tax credit. 3 26 Sec. 3. EFFECTIVE AND APPLICABILITY DATE. This Act, being 3 27 deemed of immediate importance, takes effect upon enactment 3 28 and applies retroactively to January 1, 2000, for tax years 3 29 beginning on or after that date. 3 30 EXPLANATION 3 31 This bill provides refundable tax credits for certain 3 32 teachers and engineers employed in this state. The teacher 3 33 tax credit equal to $1,250 is awarded to teachers who fill 3 34 teaching positions in a shortage area requiring a specific 3 35 teaching endorsement. The department of education is to 4 1 provide eligible individuals with certificates for the credit 4 2 that are to be filed with the Iowa income tax returns of the 4 3 individuals. 4 4 In the case of engineers, an engineer is eligible for a 4 5 credit equal to $2,000 if the engineer is employed to fill a 4 6 new engineering position in the state with an employer doing 4 7 business in the state, is licensed as an engineer in the 4 8 state, and has completed an engineering degree within five 4 9 years before starting employment. The engineer's employer is 4 10 to submit verification of eligibility for the credit with the 4 11 department of economic development. That agency is to provide 4 12 a certificate to the engineer who is to file the certificate 4 13 with the Iowa income tax return to claim the credit. 4 14 Individuals who are eligible for the teacher tax credit or 4 15 the engineer tax credit may claim the credit for the year in 4 16 which the employment starts and for the following two years, 4 17 assuming eligibility is maintained for all three years. The 4 18 school district must apply for the certificate for the tax 4 19 credit for the teacher and may only apply for a maximum of 4 20 three in any one year. 4 21 The bill is retroactively applicable to January 1, 2000, 4 22 for tax years beginning on or after that date. 4 23 LSB 5495XS 78 4 24 mg/as/5
Text: SF02261 Text: SF02263 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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