Bill Text: IA HF2314 | 2011-2012 | 84th General Assembly | Introduced
Bill Title: A bill for an act creating exemptions from the computation of net income for the individual and corporate income tax and the franchise tax of amounts paid to and received from a health care sharing ministry and including retroactive applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2012-02-27 - Subcommittee, Helland, Kearns, and Sands. H.J. 338. [HF2314 Detail]
Download: Iowa-2011-HF2314-Introduced.html
House
File
2314
-
Introduced
HOUSE
FILE
2314
BY
WINDSCHITL
A
BILL
FOR
An
Act
creating
exemptions
from
the
computation
of
net
1
income
for
the
individual
and
corporate
income
tax
and
2
the
franchise
tax
of
amounts
paid
to
and
received
from
a
3
health
care
sharing
ministry
and
including
retroactive
4
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
Section
422.7,
Code
Supplement
2011,
is
amended
1
by
adding
the
following
new
subsection:
2
NEW
SUBSECTION
.
57.
Subtract
the
following:
3
a.
To
the
extent
not
otherwise
deducted
in
computing
4
adjusted
gross
income,
amounts
paid
by
an
individual
as
a
5
subscriber
in
a
health
care
sharing
ministry
that
meets
the
6
requirements
of
section
505.22.
7
b.
To
the
extent
not
otherwise
deducted
in
computing
8
adjusted
gross
income,
amounts
paid
on
behalf
of
an
employee
of
9
the
taxpayer
to
a
health
care
sharing
ministry
that
meets
the
10
requirements
of
section
505.22,
which
payment
is
part
of
the
11
employee’s
subscription
in
the
health
care
sharing
ministry.
12
c.
To
the
extent
included,
amounts
received
as
a
member
of
13
a
health
care
sharing
ministry
that
meets
the
requirements
of
14
section
505.22.
15
Sec.
2.
Section
422.9,
subsection
2,
Code
Supplement
2011,
16
is
amended
by
adding
the
following
new
paragraph:
17
NEW
PARAGRAPH
.
j.
If
the
taxpayer
has
a
deduction
for
18
health
care
sharing
ministry
expenses
under
the
Internal
19
Revenue
Code,
the
taxpayer
shall
recompute
for
the
purposes
of
20
this
subsection
the
amount
of
the
deduction
under
the
Internal
21
Revenue
Code
by
excluding
from
health
care
sharing
ministry
22
expenses
the
amounts
subtracted
under
section
422.7,
subsection
23
57,
paragraph
“a”
.
24
Sec.
3.
Section
422.35,
Code
Supplement
2011,
is
amended
by
25
adding
the
following
new
subsection:
26
NEW
SUBSECTION
.
26.
Subtract,
to
the
extent
not
already
27
excluded,
amounts
paid
on
behalf
of
an
employee
of
the
taxpayer
28
to
a
health
care
sharing
ministry
that
meets
the
requirements
29
of
section
505.22,
which
payment
is
part
of
the
employee’s
30
subscription
in
the
health
care
sharing
ministry.
31
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
32
retroactively
to
January
1,
2012,
for
tax
years
beginning
on
33
or
after
that
date.
34
EXPLANATION
35
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This
bill
creates
exemptions
from
the
individual
and
1
corporate
income
tax
and
the
franchise
tax
for
certain
2
expenses
related
to
a
health
care
sharing
ministry.
A
health
3
care
sharing
ministry
is
an
organization
which,
through
its
4
publication
to
subscribers,
solicits
funds
for
the
payment
of
5
medical
expenses
of
other
subscribers,
and
which
otherwise
6
meets
the
requirements
of
Code
section
505.22.
7
The
bill
exempts
from
the
computation
of
net
income
for
8
the
individual
income
tax
amounts
paid
by
an
individual
as
a
9
subscriber
in
a
health
care
sharing
ministry,
amounts
paid
10
on
behalf
of
an
employee
of
the
taxpayer
to
a
health
care
11
sharing
ministry,
and
amounts
received
as
a
member
of
a
health
12
care
sharing
ministry.
In
the
event
any
amount
paid
by
an
13
individual
as
a
subscriber
in
a
health
care
sharing
ministry
14
is
allowed
as
a
deduction
from
federal
adjusted
gross
income,
15
those
amounts
shall
not
be
allowed
as
a
deduction
from
Iowa
net
16
income
in
addition
to
the
exemption
provided
in
the
bill.
17
The
bill
also
exempts
from
the
computation
of
net
income
for
18
the
corporate
income
tax
and
the
franchise
tax
amounts
paid
on
19
behalf
of
an
employee
of
the
taxpayer
to
a
health
care
sharing
20
ministry.
21
The
bill
applies
retroactively
to
January
1,
2012,
for
tax
22
years
beginning
on
or
after
that
date.
23
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