SB 459-2_ Filed 03/29/2005, 11:06 Van Haaften
Adopted 3/29/2005


Text Box


    PREVAILED      Roll Call No. _______
    FAILED        Ayes _______
    WITHDRAWN        Noes _______
    RULED OUT OF ORDER


[

HOUSE MOTION ____

]

MR. SPEAKER:

    I move that Engrossed Senate Bill 459 be amended to read as follows:

SOURCE: Page 1, line 14; (05)MO045902.1. -->     Page 1, between lines 14 and 15, begin a new paragraph and insert:
SOURCE: IC 6-3-2-21; (05)MO045902.2. -->     "SECTION 2. IC 6-3-2-21 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)]: Sec. 21. (a) As used in this section, "student loan" refers to a qualified education loan (as defined in Section 221 of the Internal Revenue Code).
    (b) Subject to subsection (d), in each taxable year, an individual who is obligated to repay a student loan may deduct in computing the individual's adjusted gross income the amount determined under STEP TWELVE of the following formula:
        STEP ONE: Determine the total amount of payments paid by the individual with respect to the individual's student loans during the taxable year.
        STEP TWO: Determine the part of the STEP ONE result that is attributable to interest and other financing charges.
        STEP THREE: Subtract the STEP TWO result from the STEP ONE result to determine the part of the STEP ONE result attributable to principal.
        STEP FOUR: Determine the part of the STEP TWO result deducted by the individual in computing the individual's federal adjusted gross income under Section 62 of the Internal Revenue Code.
        STEP FIVE: Subtract the STEP FOUR result from the STEP TWO result.
        STEP SIX: Determine the initial outstanding principal balance on the student loan as of the expiration of the most recent grace period following the final date of attendance at the most recently attended institution of higher education. In the case of a husband and wife filing a joint return, determine this amount independently for each individual, and add the two (2) amounts.
        STEP SEVEN: Determine the part of the STEP SIX amount deducted by the individual in computing the individual's federal adjusted gross income under Section 62 of the Internal Revenue Code in the current and any prior taxable years.
        STEP EIGHT: Divide the STEP SEVEN result by the STEP SIX result, rounding to the nearest one thousandth (0.001).
        STEP NINE: Subtract the STEP EIGHT result from one (1).
        STEP TEN: Multiply the STEP THREE result by the STEP NINE result.
        STEP ELEVEN: Add the STEP FIVE result and the STEP TEN result.
        STEP TWELVE: Determine the lesser of the following:
            (A) The STEP ELEVEN result.
            (B) Two thousand dollars ($2,000).
    (c) A husband and wife filing a joint adjusted gross income tax return for a particular taxable year may not claim a deduction under this section of more than two thousand dollars ($2,000) in any taxable year.
    (d) An individual may not claim the deduction provided by this section for more than ten (10) taxable years during the individual's lifetime. For purposes of applying this subsection to an individual who files a joint return with the individual's spouse, the question of whether a joint return counts toward each spouse's lifetime allotment is determined independently for each spouse with reference to the underlying student loan. A joint return on which the deduction provided by this section is claimed counts towards a spouse's lifetime allotment only to the extent that the spouse is obligated to repay some part of the underlying student loan payments that are being deducted.
".
SOURCE: Page 6, line 35; (05)MO045902.6. -->     Page 6, between lines 35 and 36, begin a new paragraph and insert:
SOURCE: ; (05)MO045902.8. -->     "SECTION 8. [EFFECTIVE JANUARY 1, 2005 (RETROACTIVE)] IC 6-3-2-21, as added by this act, applies only to taxable years beginning after December 31, 2004.".

SOURCE: Page 6, line 38; (05)MO045902.6. -->     Page 6, after line 38, begin a new paragraph and insert:
SOURCE: ; (05)MO045902.10. -->     "SECTION 10. An emergency is declared for this act.".
    Renumber all SECTIONS consecutively.
    (Reference is to ESB 459 as printed March 25, 2005.)

________________________________________

Representative Van Haaften


MO045902/DI 92     2005