Senate File 450 - Introduced
SENATE FILE
BY BEHN
Passed Senate, Date Passed House, Date
Vote: Ayes Nays Vote: Ayes Nays
Approved
A BILL FOR
1 An Act relating to tax credits for school tuition organizations
2 and tuition and textbooks and including an applicability date
3 provision.
4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN
1 1 Section 1. Section 422.11S, subsection 5, paragraph a,
1 2 Code 2009, is amended to read as follows:
1 3 a. "Eligible student" means a student who is a member of a
1 4 household whose total annual income during the calendar year
1 5 before the student receives a tuition grant for purposes of
1 6 this section does not exceed an amount equal to three five
1 7 times the most recently published federal poverty guidelines
1 8 in the federal register by the United States department of
1 9 health and human services.
1 10 Sec. 2. Section 422.11S, subsection 7, paragraph a,
1 11 subparagraph (2), Code 2009, is amended to read as follows:
1 12 (2) "Total approved tax credits" means for the tax year
1 13 beginning in the 2006 calendar year, two million five hundred
1 14 thousand dollars, for the tax year beginning in the 2007
1 15 calendar year, five million dollars, and for the tax years
1 16 year beginning on or after January 1, in the 2008 and 2009
1 17 calendar years, seven million five hundred thousand dollars,
1 18 and for tax years beginning on or after January 1, 2010, ten
1 19 million dollars.
1 20 Sec. 3. Section 422.12, subsection 2, Code 2009, is
1 21 amended to read as follows:
1 22 2. a. A tuition credit equal to twenty=five fifty percent
1 23 of the first one thousand dollars which the taxpayer has paid
1 24 to others for each dependent in grades kindergarten through
1 25 twelve, for tuition and textbooks of each dependent in
1 26 attending an elementary or secondary school situated in Iowa,
1 27 which school is accredited or approved under section 256.11,
1 28 which is not operated for profit, and which adheres to the
1 29 provisions of the federal Civil Rights Act of 1964 and chapter
1 30 216. As used in this subsection, "textbooks" means books and
1 31 other instructional materials and equipment used in elementary
1 32 and secondary schools in teaching only those subjects legally
1 33 and commonly taught in public elementary and secondary schools
1 34 in this state and does not include instructional books and
1 35 materials used in the teaching of religious tenets, doctrines,
2 1 or worship, the purpose of which is to inculcate those tenets,
2 2 doctrines, or worship. "Textbooks" includes books or
2 3 materials used for extracurricular activities including
2 4 sporting events, musical or dramatic events, speech
2 5 activities, driver's education, or programs of a similar
2 6 nature. Notwithstanding any other provision, all other
2 7 credits allowed under this section shall be deducted before
2 8 the tuition credit under this subsection. The department,
2 9 when conducting an audit of a taxpayer's return, shall also
2 10 audit the tuition tax credit portion of the tax return.
2 11 b. As used in this subsection, "tuition" means any charges
2 12 for the expenses of personnel, buildings, equipment and
2 13 materials other than textbooks, and other expenses of
2 14 elementary or secondary schools which relate to the teaching
2 15 only of those subjects legally and commonly taught in public
2 16 elementary and secondary schools in this state and which do
2 17 not relate to the teaching of religious tenets, doctrines, or
2 18 worship, the purpose of which is to inculcate those tenets,
2 19 doctrines, or worship. "Tuition" includes those expenses
2 20 which relate to extracurricular activities including sporting
2 21 events, musical or dramatic events, speech activities,
2 22 driver's education, or programs of a similar nature.
2 23 Sec. 4. APPLICABILITY DATE. This Act applies to tax years
2 24 beginning on or after January 1, 2010.
2 25 EXPLANATION
2 26 This bill relates to tax credits for school tuition
2 27 organizations and for tuition and textbooks.
2 28 Code section 422.11S provides for a school tuition
2 29 organization tax credit. Eligibility for the tax credit is
2 30 currently limited to students whose household income does not
2 31 exceed three times the most recently published federal poverty
2 32 guidelines. The bill increases the eligibility to students
2 33 whose household income does not exceed five times the
2 34 guidelines.
2 35 The school tuition organization tax credit is currently
3 1 limited to $7.5 million in total approved credits. The bill
3 2 increases the total amount of credits that may be approved to
3 3 $10 million.
3 4 Code section 422.12 allows a tuition credit for up to 25
3 5 percent of the first $1,000 spent on tuition and textbooks.
3 6 The bill increases this credit to 50 percent of the first
3 7 $1,000.
3 8 The bill applies to tax years beginning on or after January
3 9 1, 2010.
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