Bill Text: IA HF2352 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act providing an Iowa rebate tax credit for eligible individuals, providing an exemption from the computation of the state individual income tax, and including effective date and retroactive applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-02-29 - Subcommittee, Helland, Jacoby, and Sands. H.J. 398. [HF2352 Detail]
Download: Iowa-2011-HF2352-Introduced.html
House
File
2352
-
Introduced
HOUSE
FILE
2352
BY
LUKAN
A
BILL
FOR
An
Act
providing
an
Iowa
rebate
tax
credit
for
eligible
1
individuals,
providing
an
exemption
from
the
computation
of
2
the
state
individual
income
tax,
and
including
effective
3
date
and
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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2352
DIVISION
I
1
IOWA
TAX
REBATE
CREDIT
2
Section
1.
NEW
SECTION
.
422.11I
Iowa
tax
rebate
credit.
3
1.
For
purposes
of
this
section,
unless
the
context
4
otherwise
requires,
“eligible
individual”
means
an
Iowa
resident
5
who,
for
the
first
tax
year
beginning
on
or
after
January
1,
6
2011,
had
an
Iowa
individual
net
income
tax
liability
which
was
7
greater
than
zero,
and
who
made
and
filed
an
income
tax
return
8
pursuant
to
section
422.13
for
that
tax
year.
An
eligible
9
individual
does
not
include
an
estate
or
trust,
or
a
resident
10
with
respect
to
whom
a
deduction
under
section
151
of
the
11
Internal
Revenue
Code
is
allowable
to
another
taxpayer
for
the
12
first
tax
year
beginning
on
or
after
January
1,
2011.
13
2.
The
taxes
imposed
under
this
division,
less
the
credits
14
allowed
under
section
422.12,
shall
be
reduced
by
an
Iowa
tax
15
rebate
credit
to
an
eligible
individual
for
the
first
tax
year
16
beginning
on
or
after
January
1,
2012,
in
the
amount
of
three
17
hundred
dollars.
18
3.
The
amount
of
the
credit
allowable
in
subsection
2
shall
19
be
reduced,
but
not
below
zero,
by
the
aggregate
refunds
and
20
credits
made
or
allowed
to
the
taxpayer
under
subsection
5.
21
4.
Any
credit
in
excess
of
the
taxpayer’s
tax
liability
22
shall
be
refunded.
In
lieu
of
claiming
the
refund,
the
23
taxpayer
may
elect
to
have
the
overpayment
shown
on
the
24
taxpayer’s
final,
completed
return
credited
to
the
tax
25
liability
for
the
following
tax
year.
26
5.
a.
Each
taxpayer
who
is
an
eligible
individual
shall
27
be
treated
as
having
made
a
payment
against
the
tax
imposed
28
in
this
chapter
for
such
first
tax
year
beginning
on
or
after
29
January
1,
2011,
in
an
amount
equal
to
the
credit
in
subsection
30
2.
31
b.
The
director
shall,
subject
to
the
provisions
of
this
32
section,
refund
or
credit
any
overpayment
attributable
to
this
33
subsection
as
soon
as
practicable.
A
refund
or
credit
shall
34
not
be
made
or
allowed
under
this
subsection
after
December
31,
35
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2012.
1
c.
Notwithstanding
any
other
provision
of
this
chapter,
2
interest
shall
not
be
allowed
on
any
overpayment
attributable
3
to
this
subsection.
4
6.
This
section
is
repealed
on
June
30,
2013.
5
Sec.
2.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
6
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
7
enactment.
8
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
division
of
this
9
Act
applies
retroactively
to
January
1,
2012,
for
the
tax
year
10
beginning
on
or
after
January
1,
2012,
and
ending
on
December
11
31,
2012.
12
DIVISION
II
13
INCOME
TAX
EXEMPTION
FOR
IOWA
TAX
REBATE
CREDIT
14
Sec.
4.
Section
422.7,
Code
Supplement
2011,
is
amended
by
15
adding
the
following
new
subsection:
16
NEW
SUBSECTION
.
6.
a.
Subtract
the
credit
or
refund
17
received
from
the
Iowa
tax
rebate
credit
pursuant
to
section
18
422.11I
to
the
extent
that
the
credit
or
refund
increased
19
federal
adjusted
gross
income.
20
b.
This
subsection
is
repealed
on
June
30,
2014.
21
Sec.
5.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
22
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
23
enactment.
24
Sec.
6.
RETROACTIVE
APPLICABILITY.
This
division
of
this
25
Act
applies
retroactively
to
January
1,
2012,
for
tax
years
26
beginning
on
or
after
that
date.
27
EXPLANATION
28
This
bill
relates
to
the
creation
of
an
Iowa
tax
rebate
29
credit
and
an
individual
income
tax
exemption
for
the
Iowa
tax
30
rebate
credit.
31
Division
I
of
the
bill
relates
to
the
Iowa
tax
rebate
credit.
32
This
division
provides
a
one-time
refundable
individual
33
income
tax
credit
to
eligible
individuals
for
the
2012
tax
34
year
equal
to
$300.
“Eligible
individual”
is
defined
as
an
35
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2352
Iowa
resident
who
had
a
2011
Iowa
individual
net
income
tax
1
liability
which
was
greater
than
zero,
and
who
made
and
filed
2
an
Iowa
income
tax
return
for
that
tax
year.
An
eligible
3
individual
does
not
include
an
estate
or
trust,
or
a
resident
4
who
could
be
claimed
as
a
dependent
on
the
federal
income
tax
5
return
of
another
taxpayer
for
the
2011
tax
year.
6
An
eligible
individual
who
qualifies
for
the
credit
7
is
treated
as
having
made
a
payment
against
the
eligible
8
individual’s
2011
tax
in
an
amount
equal
to
the
credit.
The
9
director
is
required
to
refund
or
credit
any
overpayment
10
attributable
to
this
payment
as
soon
as
practicable.
A
refund
11
or
credit
shall
not
be
made
or
allowed
with
respect
to
this
12
advance
refund
after
December
31,
2012.
Interest
shall
not
be
13
allowed
on
any
overpayment
attributable
to
this
advance
refund.
14
The
amount
of
the
credit
allowed
in
2012
shall
be
reduced,
15
but
not
below
zero,
by
the
advance
refund
or
credit
described
16
above.
Any
credit
in
excess
of
the
taxpayer’s
liability
shall
17
be
refunded.
The
Iowa
tax
rebate
credit
is
automatically
18
repealed
on
June
30,
2013.
19
The
division
takes
effect
upon
enactment
and
applies
to
the
20
tax
year
beginning
on
or
after
January
1,
2012,
and
ending
on
21
December
31,
2012.
22
Division
II
of
the
bill
relates
to
an
exemption
from
the
23
individual
income
tax
for
the
Iowa
tax
rebate
credit.
24
The
division
provides
an
exemption
from
the
state
individual
25
income
tax
for
the
amount
of
any
credit
or
refund
received
26
from
the
Iowa
tax
rebate
credit,
to
the
extent
the
credit
or
27
refund
increased
federal
adjusted
gross
income.
The
income
tax
28
exemption
is
automatically
repealed
on
June
30,
2014.
29
The
division
takes
effect
upon
enactment
and
applies
30
retroactively
to
January
1,
2012,
for
tax
years
beginning
on
31
or
after
that
date.
32
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