House File 40HOUSE FILE BY TYMESON, DOLECHECK, WIENCEK, KAUFMANN, FORRISTALL, L. MILLER, BOAL, CHAMBERS, and MAY 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 1329YH 82 6 mg/sh/8 PAG LIN 1 1 Section 1. NEW SECTION. 422.11T TEACHER EXPENSE CREDIT. 1 2 The taxes imposed under this division, less the credits 1 3 allowed under sections 422.12 and 422.12B, shall be reduced by 1 4 a teacher expense credit equal to the first two hundred fifty 1 5 dollars of the cost incurred to purchase supplies by the 1 6 taxpayer to assist the taxpayer in teaching at an elementary 1 7 or secondary school situated in Iowa, which school is 1 8 accredited under section 256.11. To qualify for the credit, 1 9 the costs must be nonreimbursable from any source. If the 1 10 cost incurred has been deducted in computing federal adjusted 1 11 gross income, the amount of such deduction shall be added in 1 12 determining net income under section 422.7. Any credit in 1 13 excess of the tax 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, 2006, 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 teaching at accredited elementary or secondary schools 1 28 in Iowa. To qualify, the expenses must be nonreimbursable 1 29 from any source. If the expenses were deducted in computing 1 30 federal adjusted gross income, the deduction shall be added in 1 31 determining Iowa net income. These supplies include paper 1 32 supplies, bulletin boards, books, maps, charts, computer 1 33 software but not hardware, and other similar items directly 1 34 used by the taxpayer as a teacher. The cost incurred to 1 35 purchase supplies for which a tax credit may be received under 2 1 this section shall not be used by a school district to 2 2 supplement its costs of instructional materials. 2 3 The bill applies retroactively to January 1, 2006, for tax 2 4 years beginning on or after that date. 2 5 LSB 1329YH 82 2 6 mg:sc/sh/8