Senate Amendment 5245


PAG LIN




     1  1    Amend Senate File 2295 as follows:
     1  2 #1.  By striking everything after the enacting
     1  3 clause and inserting the following:
     1  4    <Section 1.  NEW SECTION.  422.12F  ADDITIONAL
     1  5 TUITION TAX CREDIT.
     1  6    1.  The tax imposed under this division, less the
     1  7 credits allowed under sections 422.12 and 422.12B,
     1  8 shall be reduced by an additional tuition tax credit
     1  9 equal to fifty percent of the first one thousand
     1 10 dollars which the taxpayer has paid to others for each
     1 11 dependent in grades kindergarten through twelve, for
     1 12 tuition and textbooks of each dependent in attending
     1 13 an elementary or secondary school situated in Iowa,
     1 14 which school is accredited or approved under section
     1 15 256.11, which is not operated for profit, and which
     1 16 adheres to the provisions of the federal Civil Rights
     1 17 Act of 1964 and chapter 216.  As used in this
     1 18 subsection, "textbooks" and "tuition" mean the same as
     1 19 those terms are defined in section 422.12, subsection
     1 20 2.
     1 21    The additional tuition tax credit provided in this
     1 22 section is only available to taxpayers with net
     1 23 incomes of less than forty thousand dollars.  The tax
     1 24 credit is in addition to the tuition credit provided
     1 25 in section 422.12, subsection 2, which credit shall be
     1 26 deducted prior to the additional tuition tax credit
     1 27 under this section.
     1 28    2.  Any credit in excess of the tax liability shall
     1 29 be refunded.  In lieu of claiming a refund, a taxpayer
     1 30 may elect to have the overpayment shown on the
     1 31 taxpayer's final, completed return credited to the tax
     1 32 liability for the following taxable year.
     1 33    3.  Married taxpayers electing to file separate
     1 34 returns or to file separately on a combined return
     1 35 form must determine the additional tuition tax credit
     1 36 under subsection 1 based upon their combined net
     1 37 income and allocate the total credit amount to each
     1 38 spouse in the proportion that each spouse's respective
     1 39 net income bears to the total combined net income.
     1 40    Sec. 2.  APPLICABILITY DATE.  This Act applies to
     1 41 tax years beginning on or after January 1, 2005.>
     1 42 #2.  Title page, by striking lines 1 and 2 and
     1 43 inserting the following:  <An Act allowing an
     1 44 additional tuition tax credit for amounts paid for
     1 45 tuition and textbooks of dependents to attend
     1 46 elementary and secondary schools in Iowa and including
     1 47 an>.
     1 48
     1 49
     1 50                               
     2  1 MIKE CONNOLLY
     2  2 SF 2295.202 80
     2  3 mg/sh

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