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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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