Bill Text: IA HF125 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act updating the Code references to the Internal Revenue Code and decoupling from certain federal bonus depreciation provisions, and including effective date and retroactive applicability provisions. (Formerly HSB 67)
Sponsorship: Committee Bill
Status: (Introduced - Dead) 2015-02-10 - Withdrawn. H.J. 293. [HF125 Detail]
Download: Iowa-2015-HF125-Introduced.html
House File 125 - Introduced HOUSE FILE BY COMMITTEE ON WAYS AND MEANS (SUCCESSOR TO HSB 67) A BILL FOR 1 An Act updating the Code references to the Internal Revenue 2 Code and decoupling from certain federal bonus depreciation 3 provisions, and including effective date and retroactive 4 applicability provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1308HV (1) 86 mm/sc PAG LIN 1 1 DIVISION I 1 2 INTERNAL REVENUE CODE REFERENCES 1 3 Section 1. Section 15.335, subsection 7, paragraph b, Code 1 4 2015, is amended to read as follows: 1 5 b. For purposes of this section, "Internal Revenue Code" 1 6 means the Internal Revenue Code in effect on January 1,2014 1 72015. 1 8 Sec. 2. Section 422.3, subsection 5, Code 2015, is amended 1 9 to read as follows: 1 10 5. "Internal Revenue Code" means the Internal Revenue Code 1 11 of 1954, prior to the date of its redesignation as the Internal 1 12 Revenue Code of 1986 by the Tax Reform Act of 1986, or means 1 13 the Internal Revenue Code of 1986 as amended to and including 1 14 January 1,20142015. 1 15 Sec. 3. Section 422.9, subsection 2, paragraph i, Code 2015, 1 16 is amended to read as follows: 1 17 i. The deduction for state sales and use taxes is allowable 1 18 only if the taxpayer elected to deduct the state sales and use 1 19 taxes in lieu of state income taxes under section 164 of the 1 20 Internal Revenue Code. A deduction for state sales and use 1 21 taxes is not allowed if the taxpayer has taken the deduction 1 22 for state income taxes or claimed the standard deduction under 1 23 section 63 of the Internal Revenue Code. This paragraph 1 24 applies to taxable years beginning after December 31, 2003, and 1 25 before January 1, 2008, and to taxable years beginning after 1 26 December 31, 2009, and before January 1,20142015. 1 27 Sec. 4. Section 422.10, subsection 3, paragraph b, Code 1 28 2015, is amended to read as follows: 1 29 b. For purposes of this section, "Internal Revenue Code" 1 30 means the Internal Revenue Code in effect on January 1,2014 1 312015. 1 32 Sec. 5. Section 422.32, subsection 1, paragraph h, Code 1 33 2015, is amended to read as follows: 1 34 h. "Internal Revenue Code" means the Internal Revenue Code 1 35 of 1954, prior to the date of its redesignation as the Internal 2 1 Revenue Code of 1986 by the Tax Reform Act of 1986, or means 2 2 the Internal Revenue Code of 1986 as amended to and including 2 3 January 1,20142015. 2 4 Sec. 6. Section 422.33, subsection 5, paragraph e, 2 5 subparagraph (2), Code 2015, is amended to read as follows: 2 6 (2) For purposes of this subsection, "Internal Revenue Code" 2 7 means the Internal Revenue Code in effect on January 1,2014 2 82015. 2 9 Sec. 7. EFFECTIVE UPON ENACTMENT. This division of this 2 10 Act, being deemed of immediate importance, takes effect upon 2 11 enactment. 2 12 Sec. 8. RETROACTIVE APPLICABILITY. This division of this 2 13 Act applies retroactively to January 1, 2014, for tax years 2 14 beginning on or after that date. 2 15 DIVISION II 2 16 BONUS DEPRECIATION 2 17 Sec. 9. Section 422.7, subsection 39A, unnumbered paragraph 2 18 1, Code 2015, is amended to read as follows: 2 19 The additional first=year depreciation allowance authorized 2 20 in section 168(k) of the Internal Revenue Code, as enacted by 2 21 Pub. L. No. 110=185, {103, Pub. L. No. 111=5, {1201, Pub. L. 2 22 No. 111=240, {2022, Pub. L. No. 111=312, {401,andPub. L. No. 2 23 112=240, {331, and Pub. L. No. 113=295, {125, does not apply in 2 24 computing net income for state tax purposes. If the taxpayer 2 25 has taken the additional first=year depreciation allowance 2 26 for purposes of computing federal adjusted gross income, then 2 27 the taxpayer shall make the following adjustments to federal 2 28 adjusted gross income when computing net income for state tax 2 29 purposes: 2 30 Sec. 10. Section 422.35, subsection 19A, unnumbered 2 31 paragraph 1, Code 2015, is amended to read as follows: 2 32 The additional first=year depreciation allowance authorized 2 33 in section 168(k) of the Internal Revenue Code, as enacted by 2 34 Pub. L. No. 110=185, {103, Pub. L. No. 111=5, {1201, Pub. L. 2 35 No. 111=240, {2022, Pub. L. No. 111=312, {401,andPub. L. No. 3 1 112=240, {331, and Pub. L. No. 113=295, {125, does not apply in 3 2 computing net income for state tax purposes. If the taxpayer 3 3 has taken the additional first=year depreciation allowance for 3 4 purposes of computing federal taxable income, then the taxpayer 3 5 shall make the following adjustments to federal taxable income 3 6 when computing net income for state tax purposes: 3 7 Sec. 11. EFFECTIVE UPON ENACTMENT. This division of this 3 8 Act, being deemed of immediate importance, takes effect upon 3 9 enactment. 3 10 Sec. 12. RETROACTIVE APPLICABILITY. This division of this 3 11 Act applies retroactively to January 1, 2014, for tax years 3 12 ending on or after that date. 3 13 EXPLANATION 3 14 The inclusion of this explanation does not constitute agreement with 3 15 the explanation's substance by the members of the general assembly. 3 16 This bill updates the Iowa Code references to the Internal 3 17 Revenue Code to make federal income tax revisions enacted by 3 18 Congress in 2014 applicable for Iowa income tax purposes, and 3 19 decouples with certain bonus depreciation provisions. 3 20 DIVISION I ==== INTERNAL REVENUE CODE REFERENCES. The 3 21 division amends Code sections 422.3 and 422.32, general 3 22 definition sections in the chapter of the Code that governs 3 23 corporate and individual income tax and the franchise tax 3 24 on financial institutions, to update the references to the 3 25 Internal Revenue Code. 3 26 The division amends Code sections 15.335, 422.10, and 422.33 3 27 to update the references to the Internal Revenue Code for the 3 28 state research activities credit for individuals, corporations, 3 29 and corporations in economic development areas to include the 3 30 federal changes to the research activities credit and the 3 31 alternative simplified research activities credit. 3 32 Code section 422.9 provides individuals a deduction from net 3 33 income for state sales and use taxes if the individual chose 3 34 to deduct sales and use tax in lieu of state income taxes or 3 35 the standard deduction for federal income tax purposes. This 4 1 deduction was set to expire under both federal and Iowa law for 4 2 tax years beginning on or after January 1, 2014. The federal 4 3 Tax Increase Prevention Act of 2014 extended the federal 4 4 deduction for the 2014 tax year. This division extends the 4 5 Iowa deduction for the 2014 tax year. 4 6 Division I takes effect upon enactment and applies 4 7 retroactively to January 1, 2014, for tax years beginning on 4 8 or after that date. 4 9 DIVISION II ==== BONUS DEPRECIATION. The division decouples, 4 10 for Iowa income tax purposes, from the federal additional 4 11 first=year depreciation allowance in section 168(k) of the 4 12 Internal Revenue Code which was extended through 2014 by the 4 13 federal Tax Increase Prevention Act of 2014. 4 14 Division II takes effect upon enactment and applies 4 15 retroactively to January 1, 2014, for tax years ending on or 4 16 after that date. LSB 1308HV (1) 86 mm/sc
