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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