Bill Text: IA SF353 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act creating a private school tuition tax credit available against the individual income tax and including retroactive applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2015-03-03 - Subcommittee, Quirmbach, Breitbach, and Dotzler. S.J. 429. [SF353 Detail]
Download: Iowa-2015-SF353-Introduced.html
Senate File 353 - Introduced SENATE FILE BY CHELGREN A BILL FOR 1 An Act creating a private school tuition tax credit available 2 against the individual income tax and including retroactive 3 applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2290XS (1) 86 mm/sc PAG LIN 1 1 Section 1. NEW SECTION. 422.11K Private school tuition tax 1 2 credit. 1 3 1. The taxes imposed under this division, less the credits 1 4 allowed under section 422.12, shall be reduced by a private 1 5 school tuition tax credit equal to the amounts that the 1 6 taxpayer has paid to others for tuition and textbooks of each 1 7 dependent in grades kindergarten through twelve attending a 1 8 nonpublic elementary or secondary school situated in Iowa, 1 9 which school is accredited or approved under section 256.11, 1 10 which is not operated for profit, and which adheres to the 1 11 provisions of the federal Civil Rights Act of 1964 and chapter 1 12 216, not to exceed an amount per dependent equal to the regular 1 13 program state cost per pupil calculated by the department 1 14 of management for the budget year that begins during the 1 15 taxpayer's tax year. A taxpayer who elects to claim the credit 1 16 provided in this section shall not claim the tuition credit 1 17 provided in section 422.12, subsection 2, paragraph "b". For 1 18 purposes of this subsection, "dependent", "textbooks", and 1 19 "tuition" all mean the same as defined in section 422.12. 1 20 2. Any tax credit in excess of the tax liability for the tax 1 21 year is refundable. 1 22 3. a. In lieu of claiming the credit on the taxpayer's 1 23 return the taxpayer may elect, in the manner and form 1 24 prescribed by the department, to transfer the tax credit or any 1 25 amount of the tax credit. 1 26 b. A taxpayer who has made an election to transfer a 1 27 tax credit pursuant to paragraph "a" shall be issued a tax 1 28 credit certificate by the department containing the taxpayer's 1 29 name, address, tax identification number, the amount of the 1 30 credit, a place for the name and tax identification number of a 1 31 transferee and the amount of the tax credit being transferred, 1 32 and any other information deemed relevant by the department. 1 33 c. Tax credit certificates issued under this subsection 1 34 may be transferred to any person. Within ninety days of 1 35 transfer, the transferee shall submit the transferred tax 2 1 credit certificate to the department along with a statement 2 2 containing the transferee's name, tax identification number, 2 3 and address, the denomination that each replacement tax credit 2 4 certificate is to carry, and any other information required 2 5 by the department. However, tax credit certificate amounts 2 6 of less than the minimum amount established by rule of the 2 7 department shall not be transferable. 2 8 d. Within thirty days of receiving the transferred tax 2 9 credit certificate and the transferee's statement, the 2 10 department shall issue one or more replacement tax credit 2 11 certificates to the transferee. Each replacement tax credit 2 12 certificate must contain the information required for the 2 13 original tax credit certificate and must have the same 2 14 expiration date that appeared on the transferred tax credit 2 15 certificate. 2 16 e. A tax credit shall not be claimed by a transferee 2 17 under this section until a replacement tax credit certificate 2 18 identifying the transferee as the proper holder has been 2 19 issued. The transferee may use the amount of the tax credit 2 20 transferred against the taxes imposed in chapter 422, division 2 21 II, for any tax year the original transferor could have claimed 2 22 the tax credit. Any consideration received for the transfer of 2 23 the tax credit shall not be included as income under chapter 2 24 422, divisions II, III, and V. Any consideration paid for the 2 25 transfer of the tax credit shall not be deducted from income 2 26 under chapter 422, divisions II, III, and V. 2 27 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 2 28 retroactively to January 1, 2015, for tax years beginning on 2 29 or after that date. 2 30 EXPLANATION 2 31 The inclusion of this explanation does not constitute agreement with 2 32 the explanation's substance by the members of the general assembly. 2 33 This bill creates a private school tuition tax credit 2 34 available against the individual income tax. Under current law 2 35 in Code section 422.12, a taxpayer may claim a nonrefundable 3 1 individual income tax credit equal to 25 percent of the first 3 2 $1,000 paid by a taxpayer for tuition and textbooks of a 3 3 dependent to attend an elementary or secondary school in Iowa 3 4 that meets certain requirements. 3 5 The bill creates a new private school tuition tax credit 3 6 equal to the full amount of tuition and textbooks paid by a 3 7 taxpayer for a dependent of the taxpayer to attend a nonpublic 3 8 elementary or secondary school in Iowa that meets certain 3 9 requirements specified in the bill. "Dependent", "tuition", 3 10 and "textbooks" are defined in the bill to mean the same as 3 11 used in the existing tuition and textbook tax credit in Code 3 12 section 422.12. 3 13 The maximum amount of private school tuition tax credit that 3 14 may be claimed per dependent in any given tax year shall not 3 15 exceed the regular program state cost per pupil calculated by 3 16 the department of management during that tax year. 3 17 The tax credit is refundable or, at the election of the 3 18 taxpayer, may be transferred to any other person. The bill 3 19 establishes procedures for transferring the credit to another 3 20 person, including procedures for the issuance of a tax credit 3 21 certificate by the department of revenue. 3 22 A taxpayer that elects to claim the private school tuition 3 23 tax credit provided in the bill is ineligible to claim the 3 24 existing tuition and textbook tax credit in Code section 3 25 422.12. 3 26 The bill applies retroactively to tax years beginning on or 3 27 after January 1, 2015. LSB 2290XS (1) 86 mm/sc
