House File 566 - Introduced



                                       HOUSE FILE       
                                       BY  LUKAN


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

                                      A BILL FOR

  1 An Act providing tax credits to low=income workers for purchases
  2    of used vehicles and including a retroactive applicability
  3    date provision.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 1810HH 83
  6 tw/mg:sc/14

PAG LIN



  1  1    Section 1.  NEW SECTION.  422.11X  USED COMMUTER VEHICLE
  1  2 TAX CREDIT.
  1  3    1.  A tax credit in an amount not to exceed five hundred
  1  4 dollars shall be allowed against the taxes imposed in this
  1  5 division for the costs incurred by an eligible taxpayer for
  1  6 the purchase during the tax year of the taxpayer's motor
  1  7 vehicle.
  1  8    2.  To be eligible for the credit, the taxpayer shall meet
  1  9 all of the following conditions:
  1 10    a.  The taxable income of the taxpayer shall not exceed the
  1 11 applicable income threshold specified in the most recently
  1 12 issued federal poverty guidelines as updated periodically in
  1 13 the federal register by the United States department of health
  1 14 and human services under the authority of 42 U.S.C. } 9902(2).
  1 15    b.  The taxpayer shall be employed at the end of the tax
  1 16 year.
  1 17    c.  The motor vehicle shall be used as a means of
  1 18 transportation to and from the taxpayer's place of employment.
  1 19    d.  The motor vehicle purchased by the taxpayer shall be a
  1 20 previously owned vehicle subject to registration.
  1 21    3.  Only the latest purchased motor vehicle subject to
  1 22 registration shall be considered for the credit.
  1 23    4.  Any tax credit in excess of the taxpayer's liability
  1 24 for the tax year is refundable.
  1 25    5.  The department shall adopt rules implementing this
  1 26 section.
  1 27    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies
  1 28 retroactively to January 1, 2009, for tax years beginning on
  1 29 or after that date.
  1 30                           EXPLANATION
  1 31    This bill provides a tax credit of up to $500 to low=income
  1 32 workers for the purchase of a used vehicle subject to
  1 33 registration.  The credit is available to a taxpayer for a
  1 34 portion of the cost of purchasing the licensed vehicle if:
  1 35 (1) the taxpayer's taxable income is within the limits
  2  1 specified in the federal poverty guidelines; (2) the taxpayer
  2  2 is employed at the end of the tax year; (3) the vehicle is to
  2  3 be used for commuting to work; and (4) the vehicle is a
  2  4 previously owned vehicle.  Only the latest purchased vehicle
  2  5 is considered for the credit.  The credit is refundable.
  2  6    The bill applies retroactively to January 1, 2009, for tax
  2  7 years beginning on or after that date.
  2  8 LSB 1810HH 83
  2  9 tw/mg:sc/14