Bill Text: IA HF2504 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act providing a deduction from the individual and corporate income taxes for the amount of certain income derived from indigent representation by an attorney, and including retroactive applicability provisions.(See HF 2679.)
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced) 2024-04-04 - Withdrawn. H.J. 737. [HF2504 Detail]
Download: Iowa-2023-HF2504-Introduced.html
House
File
2504
-
Introduced
HOUSE
FILE
2504
BY
LOHSE
A
BILL
FOR
An
Act
providing
a
deduction
from
the
individual
and
corporate
1
income
taxes
for
the
amount
of
certain
income
derived
2
from
indigent
representation
by
an
attorney,
and
including
3
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
Section
422.7,
Code
2024,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
44.
a.
A
taxpayer
who
is
a
partner,
3
member,
or
shareholder
of
a
law
firm
may
subtract,
to
the
4
extent
included,
the
aggregated
amount
calculated
in
paragraph
5
“c”
for
the
tax
year.
6
b.
As
used
in
this
subsection,
“law
firm”
means
a
law
firm
7
in
this
state
consisting
of
two
or
more
attorneys
that
has
not
8
entered
into
a
contract
authorized
pursuant
to
section
13B.4,
9
subsection
3,
when
an
attorney
from
the
law
firm
who
has
been
10
licensed
to
practice
law
in
this
state
or
any
other
state
for
11
less
than
five
years
is
appointed
by
the
court
to
represent
a
12
person
in
a
case
pursuant
to
section
814.11
or
815.10
on
or
13
after
July
1,
2024.
14
c.
An
amount
equal
to
the
difference
between
the
total
15
hours
billed
by
the
attorney
in
the
case
multiplied
by
one
16
hundred
fifty
dollars
or
the
total
hours
billed
in
the
case
17
multiplied
by
the
actual
hourly
rate
charged
by
the
law
firm
18
for
that
attorney
for
such
a
case,
whichever
is
less,
and
the
19
total
hours
billed
in
the
case
multiplied
by
the
hourly
rate
in
20
effect
for
the
case
in
section
815.7.
21
d.
A
taxpayer
who
is
a
partner
of
a
partnership
or
a
22
shareholder
of
a
subchapter
S
corporation,
or
a
member
of
a
23
limited
liability
company,
may
deduct
the
portion
of
the
amount
24
calculated
pursuant
to
paragraph
“c”
based
on
the
taxpayer’s
25
pro
rata
share
of
the
profits
or
losses
from
the
partnership,
26
subchapter
S
corporation,
or
limited
liability
company.
27
Sec.
2.
Section
422.35,
Code
2024,
is
amended
by
adding
the
28
following
new
subsection:
29
NEW
SUBSECTION
.
14.
a.
A
taxpayer
who
is
a
partner,
30
member,
or
shareholder
of
a
law
firm
may
subtract,
to
the
31
extent
included,
the
aggregated
amount
calculated
in
paragraph
32
“c”
for
the
tax
year.
33
b.
As
used
in
this
subsection,
“law
firm”
means
a
law
firm
34
in
this
state
consisting
of
two
or
more
attorneys
that
has
not
35
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entered
into
a
contract
authorized
pursuant
to
section
13B.4,
1
subsection
3,
when
an
attorney
from
the
law
firm
who
has
been
2
licensed
to
practice
law
in
this
state
or
any
other
state
for
3
less
than
five
years
is
appointed
by
the
court
to
represent
a
4
person
in
a
case
pursuant
to
section
814.11
or
815.10
on
or
5
after
July
1,
2024.
6
c.
An
amount
equal
to
the
difference
between
the
total
7
hours
billed
by
the
attorney
in
the
case
multiplied
by
one
8
hundred
fifty
dollars
or
the
total
hours
billed
in
the
case
9
multiplied
by
the
actual
hourly
rate
charged
by
the
law
firm
10
for
that
attorney
for
such
a
case,
whichever
is
less,
and
the
11
total
hours
billed
in
the
case
multiplied
by
the
hourly
rate
in
12
effect
for
the
case
in
section
815.7.
13
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
14
retroactively
to
January
1,
2024,
for
tax
years
beginning
on
15
or
after
that
date.
16
EXPLANATION
17
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
18
the
explanation’s
substance
by
the
members
of
the
general
assembly.
19
This
bill
provides
a
deduction
from
the
individual
income
or
20
corporate
income
tax
for
the
amount
of
certain
income
derived
21
from
indigent
representation
by
an
attorney.
22
The
bill
defines
“law
firm”
to
mean
a
law
firm
in
this
state
23
consisting
of
two
or
more
attorneys
that
has
not
entered
into
a
24
contract
authorized
pursuant
to
Code
section
13B.4(3)
when
an
25
attorney
from
the
law
firm
who
has
been
licensed
to
practice
26
law
in
this
state
or
any
other
state
for
less
than
five
years
27
is
appointed
by
the
court
to
represent
an
indigent
person
on
28
or
after
July
1,
2024.
29
The
amount
of
the
deduction
for
each
case,
which
may
be
30
deducted
by
a
partner,
member,
or
shareholder
of
the
law
firm,
31
shall
be
equal
to
the
difference
between
the
total
hours
billed
32
in
the
case
multiplied
by
$150,
or
the
total
hours
billed
in
33
the
case
multiplied
by
the
actual
hourly
rate
charged
by
the
34
law
firm
for
such
a
case,
whichever
is
less,
and
the
total
35
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hours
billed
in
the
case
multiplied
by
the
hourly
rate
in
1
effect
for
the
case
in
Code
section
815.7.
The
current
hourly
2
rate
is
$83
per
hour
for
a
class
“A”
felony,
$78
per
hour
for
a
3
class
“B”
felony,
and
$73
per
hour
for
all
other
cases.
4
A
taxpayer
who
is
a
partner
of
a
partnership,
a
shareholder
5
of
a
subchapter
S
corporation,
or
a
member
of
a
limited
6
liability
corporation
may
deduct
the
portion
of
the
amount
of
7
the
deduction
calculated
under
the
bill
based
on
the
taxpayer’s
8
pro
rata
share
of
the
profits
or
losses
from
the
partnership
or
9
subchapter
S
corporation.
10
The
bill
applies
retroactively
to
tax
years
beginning
on
or
11
after
January
1,
2024.
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