SENATE FILE 377

BY  ZAUN

A BILL FOR

An Act increasing the amount of the tuition tax credit and including retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

   Section 1.  Section 422.12, subsection 2, paragraph b, Code 2011, is amended to read as follows:
   b.  A tuition credit equal to twenty-five fifty percent of the first one thousand dollars which that the taxpayer has paid to others for each dependent in grades kindergarten through twelve, for tuition and textbooks of each dependent in attending an elementary or secondary school situated in Iowa, which school is accredited or approved under section 256.11, which is not operated for profit, and which adheres to the provisions of the federal Civil Rights Act of 1964 and chapter 216. Notwithstanding any other provision, all other credits allowed under this subsection shall be deducted before the tuition credit under this paragraph. The department, when conducting an audit of a taxpayer’s return, shall also audit the tuition tax credit portion of the tax return.
   Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies retroactively to January 1, 2011, for tax years beginning on or after that date.
EXPLANATION
   This bill increases the amount of tuition tax credit allowed under Code section 422.12 from 25 percent of the first $1,000 paid for tuition and textbooks to 50 percent of the first $1,000.
   The bill applies retroactively to January 1, 2011, for tax years beginning on or after that date.