Text: HF00448 Text: HF00450 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11F SCHOOL TUITION
1 2 ORGANIZATION TAX 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 school tuition organization tax credit equal to the amount,
1 6 not to exceed five hundred dollars, of the voluntary cash
1 7 contributions made by the taxpayer during the tax year to a
1 8 school tuition organization. To be eligible for this credit,
1 9 all of the following shall apply:
1 10 a. A deduction pursuant to section 170 of the Internal
1 11 Revenue Code for any amount of the contribution is not taken
1 12 for state tax purposes.
1 13 b. The contribution does not designate that any part of
1 14 the contribution be used for the direct benefit of any
1 15 dependent of the taxpayer.
1 16 2. Any credit in excess of the tax liability is not
1 17 refundable but the excess for the tax year may be credited to
1 18 the tax liability for the following five tax years or until
1 19 depleted, whichever is the earlier.
1 20 3. Married taxpayers who file separate returns or file
1 21 separately on a combined return form must determine the tax
1 22 credit under subsection 1 based upon their combined net income
1 23 and allocate the total credit amount to each spouse in the
1 24 proportion that each spouse's respective net income bears to
1 25 the total combined net income. Nonresidents or part-year
1 26 residents of Iowa must determine their tax credit in the ratio
1 27 of their Iowa source net income to their all source net
1 28 income. Nonresidents or part-year residents who are married
1 29 and elect to file separate returns or to file separately on a
1 30 combined return form must allocate the tax credit between the
1 31 spouses in the ratio of each spouse's Iowa source net income
1 32 to the combined Iowa source net income of the taxpayers.
1 33 4. For purposes of this section:
1 34 a. "Qualified school" means a nonpublic elementary or
1 35 secondary school in this state which is accredited under
2 1 section 256.11 and adheres to the provisions of the federal
2 2 Civil Rights Act of 1964 and chapter 216.
2 3 b. "School tuition organization" means a charitable
2 4 organization in this state that is exempt from federal
2 5 taxation under section 501(c)(3) of the Internal Revenue Code
2 6 and that allocates at least ninety percent of its annual
2 7 revenue for educational scholarships or tuition grants to
2 8 children to allow them to attend any qualified school of their
2 9 parents' choice. In addition, to qualify as a school tuition
2 10 organization the charitable organization shall provide
2 11 educational scholarships or tuition grants to students without
2 12 limiting availability to only students of one school.
2 13 Sec. 2. APPLICABILITY DATE. This Act applies
2 14 retroactively to January 1, 2001, for tax years beginning on
2 15 or after that date.
2 16 EXPLANATION
2 17 This bill provides for an individual income tax credit
2 18 equal to the voluntary contributions made to a school tuition
2 19 organization that is exempt from federal income tax. The tax
2 20 credit is limited to $500. The contribution must be used by
2 21 the school tuition organization to provide educational
2 22 scholarships or tuition grants to nonpublic schools that are
2 23 accredited under state law and adhere to the federal Civil
2 24 Rights Act and the state civil rights law. The contribution
2 25 may not be deducted as a charitable deduction for state tax
2 26 purposes or be designated for the direct benefit of the
2 27 taxpayer's dependents.
2 28 The bill applies retroactively to January 1, 2001, for tax
2 29 years beginning on or after that date.
2 30 LSB 2583HH 79
2 31 mg/pj/5
Text: HF00448 Text: HF00450 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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