House File 13 - Introduced



                                       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 1404YH 81
  6 mg/sh/8

PAG LIN



  1  1    Section 1.  NEW SECTION.  422.11K  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, 2005, 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, 2005, for tax
  2  4 years beginning on or after that date.
  2  5 LSB 1404YH 81
  2  6 mg/sh/8