Bill Text: IA HF304 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act creating a used electric vehicle tax credit available against the individual and corporate income taxes, and including applicability provisions.
Spectrum: Partisan Bill (Democrat 7-0)
Status: (Introduced) 2023-02-15 - Introduced, referred to Ways and Means. H.J. 313. [HF304 Detail]
Download: Iowa-2023-HF304-Introduced.html
House
File
304
-
Introduced
HOUSE
FILE
304
BY
KURTH
,
CROKEN
,
STAED
,
LEVIN
,
BAGNIEWSKI
,
JAMES
,
and
WILBURN
A
BILL
FOR
An
Act
creating
a
used
electric
vehicle
tax
credit
available
1
against
the
individual
and
corporate
income
taxes,
and
2
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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2064YH
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304
Section
1.
NEW
SECTION
.
321.116A
Used
electric
vehicle
tax
1
credit.
2
1.
As
used
in
this
section,
“electric
vehicle”
means
the
3
same
as
“battery
electric
motor
vehicle”
as
defined
in
section
4
321.116,
subsection
1.
5
2.
A
taxpayer
who
paid
a
registration
fee
pursuant
to
6
section
321.116,
upon
the
purchase
of
a
used
electric
vehicle,
7
may
claim
a
tax
credit
in
an
amount
equal
to
five
hundred
8
dollars.
9
3.
The
tax
credit
shall
be
allowed
against
the
taxes
imposed
10
under
chapter
422,
subchapters
II
and
III.
11
4.
An
individual
may
claim
a
tax
credit
under
this
section
12
of
a
partnership,
limited
liability
company,
S
corporation,
13
estate,
or
trust
electing
to
have
income
taxed
directly
to
14
the
individual.
The
amount
claimed
by
the
individual
shall
15
be
based
upon
the
pro
rata
share
of
the
individual’s
earnings
16
from
the
partnership,
limited
liability
company,
S
corporation,
17
estate,
or
trust.
18
5.
Any
credit
in
excess
of
the
taxpayer’s
liability
for
19
the
tax
year
is
not
refundable
but
may
be
credited
to
the
tax
20
liability
for
the
following
five
years
or
until
depleted,
21
whichever
is
earlier.
22
6.
A
taxpayer
claiming
the
tax
credit
shall
provide
23
documentation
supporting
the
tax
credit
claim
in
a
form
and
24
manner
prescribed
by
the
department.
25
7.
Tax
credits
issued
under
this
section
are
not
26
transferable
to
any
person.
27
8.
The
department
of
revenue
shall
adopt
rules
pursuant
to
28
chapter
17A
to
administer
this
section.
29
Sec.
2.
NEW
SECTION
.
422.12P
Used
electric
vehicle
tax
30
credit.
31
The
taxes
imposed
under
this
subchapter,
less
the
credits
32
allowed
under
section
422.12,
shall
be
reduced
by
a
used
33
electric
vehicle
tax
credit
allowed
under
section
321.116A.
34
Sec.
3.
Section
422.33,
Code
2023,
is
amended
by
adding
the
35
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304
following
new
subsection:
1
NEW
SUBSECTION
.
33.
The
taxes
imposed
under
this
subchapter
2
shall
be
reduced
by
a
used
electric
vehicle
tax
credit
allowed
3
under
section
321.116A.
4
Sec.
4.
APPLICABILITY.
This
Act
applies
to
used
electric
5
vehicles
purchased
on
or
after
January
1,
2024.
6
Sec.
5.
APPLICABILITY.
This
Act
applies
to
tax
years
7
beginning
on
or
after
January
1,
2024.
8
EXPLANATION
9
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
10
the
explanation’s
substance
by
the
members
of
the
general
assembly.
11
This
bill
creates
a
used
electric
vehicle
tax
credit
12
available
against
the
individual
and
corporate
income
taxes.
13
Under
the
bill,
a
taxpayer
who
paid
a
registration
fee
14
pursuant
to
Code
section
321.116
(battery
electric
and
plug-in
15
hybrid
electric
motor
vehicle
fees),
upon
the
purchase
of
a
16
used
electric
vehicle,
may
claim
a
tax
credit
in
an
amount
17
equal
to
$500.
18
The
bill
defines
“electric
vehicle”
to
mean
the
same
as
19
“battery
electric
motor
vehicle”
as
defined
in
Code
section
20
321.116.
21
Any
credit
in
excess
of
the
taxpayer’s
liability
for
the
tax
22
year
is
not
refundable
but
may
be
credited
to
the
tax
liability
23
for
the
following
five
years
or
until
depleted,
whichever
is
24
earlier.
25
A
taxpayer
claiming
the
tax
credit
shall
provide
26
documentation
supporting
the
tax
credit
claim
in
a
form
and
27
manner
prescribed
by
the
department
of
revenue.
28
A
tax
credit
issued
under
the
bill
is
not
transferable
to
any
29
person.
30
The
bill
applies
to
used
electric
vehicles
purchased
on
or
31
after
January
1,
2024,
for
tax
years
occurring
on
or
after
that
32
date.
33
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