House Amendment 1652
PAG LIN
1 1 Amend the amendment, H=1645, to the Senate
1 2 amendment, H=1635, to House File 816, as amended,
1 3 passed, and reprinted by the House, as follows:
1 4 #1. Page 29, by inserting after line 3 the
1 5 following:
1 6 <Sec. . NEW SECTION. 422.11K SCHOOL
1 7 CHARITABLE ORGANIZATION TAX CREDIT.
1 8 1. The taxes imposed under this division less the
1 9 credits allowed under sections 422.12 and 422.12B
1 10 shall be reduced by a school charitable organization
1 11 tax credit equal to twenty=five percent of the amount
1 12 of voluntary cash contributions made by the taxpayer
1 13 during the tax year to a school charitable
1 14 organization, not to exceed either of the following:
1 15 a. Five hundred dollars for a single individual.
1 16 b. Seven hundred fifty dollars for a married
1 17 couple.
1 18 2. The taxpayer shall not be entitled to the
1 19 credit unless the credit is preapproved by the
1 20 department as provided in subsection 4.
1 21 3. To be eligible for this credit, all of the
1 22 following shall apply:
1 23 a. A deduction pursuant to section 170 of the
1 24 Internal Revenue Code for any amount of the
1 25 contribution is not taken for state tax purposes.
1 26 b. The contribution does not designate that any
1 27 part of the contribution be used for the direct
1 28 benefit of any dependent of the taxpayer or any other
1 29 child designated by the taxpayer.
1 30 4. To receive the tax credit, the taxpayer shall
1 31 apply for the credit to the department by January 31
1 32 following the end of the calendar year in which a
1 33 contribution was made. If the taxpayer and school
1 34 charitable organization qualify, the department shall
1 35 approve the application for credit and so notify the
1 36 taxpayer by April 1 following receipt of the
1 37 application. However, the department of revenue shall
1 38 only grant approval under this section for a total of
1 39 five million dollars in credits in the fiscal year
1 40 beginning July 1, 2006, and for a total of ten million
1 41 dollars in credits in the fiscal years beginning on or
1 42 after July 1, 2007. Once the qualified applications
1 43 total more than five million dollars or ten million
1 44 dollars, as applicable, in credits, the department
1 45 shall award the approved credits on the basis of the
1 46 date of application for credit and the remaining
1 47 approved credits shall be awarded in the subsequent
1 48 fiscal year. The department shall notify the taxpayer
1 49 of the year for which the credit is approved. The
1 50 department shall prepare application forms which may
2 1 be made available to charitable organizations that may
2 2 qualify as school charitable organizations.
2 3 5. Any credit in excess of the tax liability is
2 4 not refundable but the excess for the tax year may be
2 5 credited to the tax liability for the following five
2 6 tax years or until depleted, whichever is the earlier.
2 7 6. Married taxpayers who file separate returns or
2 8 file separately on a combined return form must
2 9 determine the tax credit under subsection 1, paragraph
2 10 "b", based upon their combined net income and allocate
2 11 the total credit amount to each spouse in the
2 12 proportion that each spouse's respective net income
2 13 bears to the total combined net income. Nonresidents
2 14 or part=year residents of Iowa must determine their
2 15 tax credit in the ratio of their Iowa source net
2 16 income to their all source net income. Nonresidents
2 17 or part=year residents who are married and elect to
2 18 file separate returns or to file separately on a
2 19 combined return form must allocate the tax credit
2 20 between the spouses in the ratio of each spouse's Iowa
2 21 source net income to the combined Iowa source net
2 22 income of the taxpayers.
2 23 7. For purposes of this section:
2 24 a. "Qualified school" means a public or private
2 25 nonprofit preschool, as defined in section 237A.1,
2 26 located in this state or a public or nonpublic
2 27 elementary or secondary school in this state which is
2 28 accredited under section 256.11 and adheres to the
2 29 provisions of the federal Civil Rights Act of 1964 and
2 30 chapter 216. A qualified school shall not
2 31 discriminate on the basis of race, creed, color,
2 32 national origin, sex, age, or disability.
2 33 b. (1) "School charitable organization" means a
2 34 charitable organization in this state that is exempt
2 35 from federal taxation under section 501(c)(3) of the
2 36 Internal Revenue Code, whose governing board consists
2 37 of, but is not limited to, parents, teachers, and
2 38 members of the general public, and that allocates at
2 39 least ninety percent of its annual revenue for
2 40 educational expenses, scholarships, or tuition grants
2 41 to children to allow them to attend any qualified
2 42 school of their parents' choice.
2 43 (2) A school charitable organization shall not
2 44 discriminate on the basis of race, creed, color,
2 45 national origin, sex, age, or disability. A school
2 46 charitable organization shall only award educational
2 47 expense payments, scholarships, and tuition grants to
2 48 children who reside in Iowa. In addition, to qualify
2 49 as a school charitable organization, the charitable
2 50 organization shall only provide educational expense
3 1 payments, scholarships, or tuition grants to children
3 2 from families whose incomes are less than three
3 3 hundred percent of the federal poverty level, as
3 4 defined by the most recently revised income guidelines
3 5 published by the United States department of health
3 6 and human services.
3 7 8. A school charitable organization that receives
3 8 a voluntary cash contribution pursuant to this section
3 9 shall report to the department, on a form prescribed
3 10 by the department, by February 28 of each year all of
3 11 the following information:
3 12 a. The name, address, and contact name of the
3 13 school charitable organization.
3 14 b. The total number of contributions received
3 15 during the previous calendar year.
3 16 c. The total dollar amount of contributions
3 17 received during the previous calendar year.
3 18 d. The total number of children awarded
3 19 educational expense payments, scholarships, or tuition
3 20 grants during the previous calendar year.
3 21 e. The total dollar amount of educational expense
3 22 payments, scholarships, and tuition grants awarded
3 23 during the previous calendar year.
3 24 f. For each school to which educational expense
3 25 payments, scholarships, or tuition grants were awarded
3 26 all of the following shall be provided:
3 27 (1) The name and address of the school.
3 28 (2) The number of educational expense payments,
3 29 scholarships, and tuition grants awarded during the
3 30 previous calendar year.
3 31 (3) The total dollar amount of educational expense
3 32 payments, scholarships, and tuition grants awarded
3 33 during the previous calendar year.
3 34 9. The department shall annually file a report
3 35 with the chairpersons and ranking members of the
3 36 senate and house committees on ways and means
3 37 detailing a compilation of the information received
3 38 from the reports of all school charitable
3 39 organizations filed pursuant to the requirements of
3 40 subsection 8.>
3 41 #2. Page 30, by inserting after line 48 the
3 42 following:
3 43 <Sec. . APPLICABILITY DATE. The section of
3 44 this Act enacting section 422.11K applies to tax years
3 45 beginning on or after January 1, 2006, but before
3 46 January 1, 2014.>
3 47
3 48
3 49
3 50 WENDT of Woodbury
4 1
4 2
4 3
4 4 JOCHUM of Dubuque
4 5
4 6
4 7
4 8 HOGG of Linn
4 9 HF 816.217 81
4 10 mg/sh/4972
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