House File 2052 - Introduced



                                       HOUSE FILE       
                                       BY  S. OLSON


    Passed House,  Date               Passed Senate, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act providing an income tax deduction for the purchase of an
  2    automobile that operates on E=85 gasoline and including
  3    retroactive and applicability date provisions.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 5060YH 81
  6 mg/je/5

PAG LIN



  1  1    Section 1.  Section 422.7, Code Supplement 2005, is amended
  1  2 by adding the following new subsection:
  1  3    NEW SUBSECTION.  45.  Subtract two thousand dollars for
  1  4 each new motor vehicle, as defined in section 321.1, purchased
  1  5 during the tax year which is a 2005 or subsequent model year,
  1  6 which is to be used primarily for nonbusiness purposes, and
  1  7 which is capable of being operated on E=85 gasoline that
  1  8 contains eighty=five percent denatured alcohol by volume.
  1  9    Sec. 2.  RETROACTIVE APPLICABILITY DATE.  This Act applies
  1 10 retroactively to tax years beginning on or after January 1,
  1 11 2006.
  1 12                           EXPLANATION
  1 13    This bill allows a $2,000 deduction under the individual
  1 14 income tax for each new motor vehicle purchased which is a
  1 15 2005 or subsequent model year, is primarily used for
  1 16 nonbusiness purposes, and is propelled by E=85 gasoline.
  1 17    The bill applies retroactively to January 1, 2006, for tax
  1 18 years beginning on or after that date.
  1 19 LSB 5060YH 81
  1 20 mg:rj/je/5