Text: SF00002 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Section 1. NEW SECTION. 422.11C SUPER ETHANOL-POWERED
1 2 MOTOR VEHICLE PURCHASE TAX CREDIT.
1 3 1. As used in this section:
1 4 a. "Motor vehicle" means the same as defined in section
1 5 321.1.
1 6 b. "Super ethanol-powered motor vehicle" means a motor
1 7 vehicle that is powered using a motor vehicle fuel as defined
1 8 in section 214A.1 that contains at least eighty-five percent
1 9 ethanol, according to standards established by rules adopted
1 10 by the department of agriculture and land stewardship pursuant
1 11 to chapter 214A.
1 12 2. The taxes imposed under this division, less the credits
1 13 allowed under sections 422.12 and 422.12B, shall be reduced by
1 14 a super ethanol-powered motor vehicle purchase tax credit for
1 15 the tax year in which the taxpayer purchases a new or used
1 16 super ethanol-powered motor vehicle from a retail seller of
1 17 new or used motor vehicles. The tax credit equals the lesser
1 18 of five hundred dollars or the amount paid by the taxpayer
1 19 less any discounts and trade-ins.
1 20 3. a. Any credit in excess of the tax liability shall be
1 21 refunded. In lieu of claiming a refund, a taxpayer may elect
1 22 to have the overpayment shown on the taxpayer's final,
1 23 completed return credited to the tax liability for the
1 24 following tax year.
1 25 b. Married taxpayers who have filed joint federal returns
1 26 electing to file separate returns or to file separately on a
1 27 combined return form must determine the super ethanol-powered
1 28 motor vehicle purchase tax credit based upon their combined
1 29 net income and allocate the total credit amount to each spouse
1 30 in the proportion that each spouse's respective net income
1 31 bears to the total combined net income. Nonresidents or part-
1 32 year residents of Iowa must determine their super ethanol-
1 33 powered motor vehicle purchase tax credit in the ratio of
1 34 their Iowa-source net income to their all-source net income.
1 35 Nonresidents or part-year residents who are married and elect
2 1 to file separate returns or to file separately on a combined
2 2 return form must allocate the super ethanol-powered motor
2 3 vehicle purchase tax credit between the spouses in the ratio
2 4 of each spouse's Iowa-source net income to the combined Iowa-
2 5 source net income of the taxpayers. An individual may claim
2 6 the super ethanol-powered motor vehicle purchase tax credit
2 7 allowed a partnership, S corporation, limited liability
2 8 company, or estate or trust electing to have the income taxed
2 9 directly to the individual. The amount claimed by the
2 10 individual shall be based upon the pro rata share of the
2 11 individual's earnings of the partnership, S corporation,
2 12 limited liability company, or estate or trust.
2 13 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies
2 14 retroactively to tax years beginning on or after January 1,
2 15 2001.
2 16 EXPLANATION
2 17 This bill establishes a super ethanol-powered motor vehicle
2 18 purchase tax credit for individual taxpayers. The bill
2 19 provides a tax credit equal to the lesser of $500 or the
2 20 amount paid by the taxpayer less discounts and trade-ins for
2 21 individual taxpayers who purchase a new or used motor vehicle,
2 22 subject to registration, powered with a motor vehicle fuel
2 23 containing at least 85 percent ethanol. The bill provides for
2 24 refunding the tax credit in cases where the credit is in
2 25 excess of a tax liability and provides for allocation in cases
2 26 concerning married taxpayers filing separately on a combined
2 27 return, nonresidents, and part-year residents. The taxpayer
2 28 is also entitled to the credit if the taxpayer is a partner,
2 29 shareholder, or member of a partnership, S corporation, or
2 30 estate or trust which is entitled to the credit.
2 31 LSB 1023XS 79
2 32 da/as/5.1
Text: SF00002 Text: SF00000 - SF00099 Text: SF Index Bills and Amendments: General Index Bill History: General Index
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