House File 10 HOUSE FILE BY TYMESON Passed House, Date Passed Senate, Date Vote: Ayes Nays Vote: Ayes Nays Approved A BILL FOR 1 An Act providing an individual income tax credit for certain 2 teacher expenses and including a retroactive applicability 3 date provision. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 5 TLSB 1390HH 80 6 mg/sh/8 PAG LIN 1 1 Section 1. NEW SECTION. 422.12F TEACHER EXPENSE CREDIT. 1 2 The taxes imposed under this division, less the credits 1 3 allowed under section 422.12, shall be reduced by a teacher 1 4 expense credit equal to the first two hundred fifty dollars of 1 5 the cost incurred to purchase supplies by the taxpayer to 1 6 assist the taxpayer in teaching at an elementary or secondary 1 7 school situated in Iowa, which school is accredited under 1 8 section 256.11. To qualify for the credit, the costs must be 1 9 nonreimbursable from any source. If the cost incurred has 1 10 been deducted in computing federal adjusted gross income, the 1 11 amount of such deduction shall be added in determining net 1 12 income under section 422.7. Any credit in excess of the tax 1 13 liability is nonrefundable. 1 14 As used in this section, "supplies" includes but is not 1 15 limited to paper supplies, bulletin boards, books, maps, 1 16 charts, computer software but not hardware, and other items 1 17 directly used by the taxpayer as a teacher. The cost incurred 1 18 to purchase supplies for which a tax credit may be received 1 19 under this section shall not be used by a school district to 1 20 supplement its costs of instructional materials. 1 21 Sec. 2. APPLICABILITY. This Act applies retroactively to 1 22 January 1, 2003, for tax years beginning on or after that 1 23 date. 1 24 EXPLANATION 1 25 This bill provides an income tax credit of up to $250 for 1 26 teachers that incur expenses for supplies directly used by 1 27 them in the teaching at accredited elementary or secondary 1 28 schools in Iowa. To qualify, the expenses must be 1 29 nonreimbursable from any source. If the expenses were 1 30 deducted in computing federal adjusted gross income, the 1 31 deduction shall be added in determining Iowa net income. 1 32 These supplies include paper supplies, bulletin boards, books, 1 33 maps, charts, computer software but not hardware, and other 1 34 similar items directly used by the taxpayer as a teacher. The 1 35 cost incurred to purchase supplies for which a tax credit may 2 1 be received under this section shall not be used by a school 2 2 district to supplement its costs of instructional materials. 2 3 The bill applies retroactively to January 1, 2003, for tax 2 4 years beginning on or after that date. 2 5 LSB 1390HH 80 2 6 mg/sh/8