Text: SF02294 Text: SF02296 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 SENATE FILE 2295
1 2
1 3 AN ACT
1 4 ALLOWING INDIVIDUAL INCOME TAX CREDITS FOR CONTRIBUTIONS MADE
1 5 TO CERTAIN SCHOOL TUITION ORGANIZATIONS AND INCLUDING AN
1 6 APPLICABILITY DATE PROVISION.
1 7
1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 9
1 10 Section 1. NEW SECTION. 422.11J SCHOOL TUITION
1 11 ORGANIZATION TAX CREDIT.
1 12 1. 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 school tuition organization tax credit equal to seventy-five
1 15 percent of the amount of the voluntary cash contributions made
1 16 by the taxpayer during the tax year to a school tuition
1 17 organization, not to exceed either of the following:
1 18 a. Seven hundred dollars for a single individual.
1 19 b. Eight hundred dollars for a married couple.
1 20 2. To be eligible for this credit, all of the following
1 21 shall apply:
1 22 a. A deduction pursuant to section 170 of the Internal
1 23 Revenue Code for any amount of the contribution is not taken
1 24 for state tax purposes.
1 25 b. The contribution does not designate that any part of
1 26 the contribution be used for the direct benefit of any
1 27 dependent of the taxpayer or any other student designated by
1 28 the taxpayer.
1 29 3. Any credit in excess of the tax liability is not
1 30 refundable but the excess for the tax year may be credited to
1 31 the tax liability for the following five tax years or until
1 32 depleted, whichever is the earlier.
1 33 4. Married taxpayers who file separate returns or file
1 34 separately on a combined return form must determine the tax
1 35 credit under subsection 1, paragraph "b", based upon their
2 1 combined net income and allocate the total credit amount to
2 2 each spouse in the proportion that each spouse's respective
2 3 net income bears to the total combined net income.
2 4 Nonresidents or part-year residents of Iowa must determine
2 5 their tax credit in the ratio of their Iowa source net income
2 6 to their all source net income. Nonresidents or part-year
2 7 residents who are married and elect to file separate returns
2 8 or to file separately on a combined return form must allocate
2 9 the tax credit between the spouses in the ratio of each
2 10 spouse's Iowa source net income to the combined Iowa source
2 11 net income of the taxpayers.
2 12 5. For purposes of this section:
2 13 a. "Disabled student" means a child requiring special
2 14 education, as defined in section 256B.2, subsection 1.
2 15 b. "New student" means a child who did not attend an
2 16 accredited nonpublic school in Iowa during the previous school
2 17 year.
2 18 c. "Qualified school" means a preschool for disabled
2 19 students in this state or a nonpublic elementary or secondary
2 20 school in this state which is accredited under section 256.11
2 21 and adheres to the provisions of the federal Civil Rights Act
2 22 of 1964 and chapter 216.
2 23 d. "School tuition organization" means a charitable
2 24 organization in this state that is exempt from federal
2 25 taxation under section 501(c)(3) of the Internal Revenue Code
2 26 and that allocates at least ninety percent of its annual
2 27 revenue for educational scholarships or tuition grants to
2 28 children to allow them to attend any qualified school of their
2 29 parents' choice of which one-third of the children who receive
2 30 scholarships or grants are new students. Once a child has
2 31 been deemed a new student that child shall continue to be
2 32 counted as a new student for each school year the child
2 33 receives a scholarship or grant from the organization to
2 34 attend a qualified school. A school tuition organization
2 35 shall only award educational scholarships and tuition grants
3 1 to children who reside in Iowa. In addition, to qualify as a
3 2 school tuition organization, the charitable organization shall
3 3 provide educational scholarships or tuition grants to students
3 4 without limiting availability to only students of one school
3 5 and shall prioritize the providing of such scholarships and
3 6 grants to students from families whose incomes are less than
3 7 two hundred percent of the federal poverty level, as defined
3 8 by the most recently revised income guidelines published by
3 9 the United States department of health and human services.
3 10 6. A school tuition organization that receives a voluntary
3 11 cash contribution pursuant to this subsection shall report to
3 12 the department, in a form prescribed by the department, by
3 13 February 28 of each year all of the following information:
3 14 a. The name, address, and contact name of the school
3 15 tuition organization.
3 16 b. The total number of contributions received during the
3 17 previous calendar year.
3 18 c. The total dollar amount of contributions received
3 19 during the previous calendar year.
3 20 d. The total number of children awarded educational
3 21 scholarships or tuition grants during the previous calendar
3 22 year and the number of these children who are new students,
3 23 who reside in the state, and who are from families with
3 24 incomes of less than two hundred percent of the federal
3 25 poverty level.
3 26 e. The total dollar amount of educational scholarships and
3 27 tuition grants awarded during the previous calendar year.
3 28 f. For each school to which educational scholarships or
3 29 tuition grants were awarded all of the following shall be
3 30 provided:
3 31 (1) The name and address of the school.
3 32 (2) The number of educational scholarships and tuition
3 33 grants awarded during the previous calendar year.
3 34 (3) The total dollar amount of educational scholarships
3 35 and tuition grants awarded during the previous calendar year.
4 1 7. The department shall annually file a report with the
4 2 chairpersons and ranking members of the senate and house
4 3 committees on ways and means detailing a compilation of the
4 4 information received from the reports of all school tuition
4 5 organizations filed pursuant to the requirements of subsection
4 6 6.
4 7 Sec. 2. APPLICABILITY DATE. This Act applies to tax years
4 8 beginning on or after January 1, 2005, but before January 1,
4 9 2013.
4 10
4 11
4 12
4 13 JEFFREY M. LAMBERTI
4 14 President of the Senate
4 15
4 16
4 17
4 18 CHRISTOPHER C. RANTS
4 19 Speaker of the House
4 20
4 21 I hereby certify that this bill originated in the Senate and
4 22 is known as Senate File 2295, Eightieth General Assembly.
4 23
4 24
4 25
4 26 MICHAEL E. MARSHALL
4 27 Secretary of the Senate
4 28 Approved , 2004
4 29
4 30
4 31
4 32 THOMAS J. VILSACK
4 33 Governor
Text: SF02294 Text: SF02296 Text: SF02200 - SF02299 Text: SF Index Bills and Amendments: General Index Bill History: General Index
© 2004 Cornell College and League of Women Voters of Iowa
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