House File 40 



                                    HOUSE 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