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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