Bill Text: IA HF2575 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act exempting from the computation of the individual and corporate state income taxes broadband grants received by communications service providers, and including effective date and retroactive applicability provisions. (Formerly HF 2023.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2020-03-11 - Subcommittee: Sweeney, Chapman, and Wahls. S.J. 608. [HF2575 Detail]
Download: Iowa-2019-HF2575-Introduced.html
House
File
2575
-
Introduced
HOUSE
FILE
2575
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
2023)
A
BILL
FOR
An
Act
exempting
from
the
computation
of
the
individual
and
1
corporate
state
income
taxes
broadband
grants
received
by
2
communications
service
providers,
and
including
effective
3
date
and
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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2575
Section
1.
Section
422.7,
Code
2020,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
18.
a.
Subtract,
to
the
extent
included,
3
the
amount
of
a
federal,
state,
or
local
grant
provided
to
4
a
communications
service
provider,
if
the
grant
is
used
to
5
install
broadband
infrastructure
that
facilitates
broadband
6
service
in
targeted
service
areas
at
or
above
the
download
and
7
upload
speeds.
8
b.
As
used
in
this
subsection,
“broadband
infrastructure”
,
9
“communications
service
provider”
,
and
“targeted
service
area”
10
mean
the
same
as
defined
in
section
8B.1,
respectively.
11
Sec.
2.
Section
422.35,
Code
2020,
is
amended
by
adding
the
12
following
new
subsection:
13
NEW
SUBSECTION
.
26.
a.
Subtract,
to
the
extent
included,
14
the
amount
of
a
federal,
state,
or
local
grant
provided
to
15
a
communications
service
provider,
if
the
grant
is
used
to
16
install
broadband
infrastructure
that
facilitates
broadband
17
service
in
targeted
service
areas
at
or
above
the
download
and
18
upload
speeds.
19
b.
As
used
in
this
subsection,
“broadband
infrastructure”
,
20
“communications
service
provider”
,
and
“targeted
service
area”
21
mean
the
same
as
defined
in
section
8B.1,
respectively.
22
Sec.
3.
REFUNDS.
Refunds
of
taxes,
interest,
or
penalties
23
that
arise
from
claims
resulting
from
the
enactment
of
this
24
Act,
in
the
tax
year
beginning
January
1,
2019,
but
before
25
January
1,
2020,
shall
not
be
allowed
unless
refund
claims
26
are
filed
prior
to
October
1,
2020,
notwithstanding
any
other
27
provision
of
law
to
the
contrary.
28
Sec.
4.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
29
importance,
takes
effect
upon
enactment.
30
Sec.
5.
RETROACTIVE
APPLICABILITY.
This
Act
applies
31
retroactively
to
January
1,
2019,
and
applies
to
tax
years
32
beginning
on
or
after
that
date.
33
EXPLANATION
34
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
35
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the
explanation’s
substance
by
the
members
of
the
general
assembly.
1
This
bill
relates
to
state
taxation
of
broadband
grants
2
provided
to
a
communications
service
provider.
Under
the
bill,
3
a
communications
service
provider
given
a
federal,
state,
or
4
local
broadband
grant
may
exclude
from
the
computation
of
5
the
individual
or
corporate
state
income
tax,
as
applicable,
6
the
amount
of
the
grant
to
the
extent
the
grant
is
subject
7
to
federal
individual
or
corporate
income
tax
under
section
8
118(b)(2)
of
the
Internal
Revenue
Code,
if
the
grant
is
used
9
to
install
broadband
infrastructure
that
facilitates
broadband
10
service
in
targeted
service
areas
at
or
above
the
download
and
11
upload
speeds
specified
in
the
definition
of
targeted
service
12
area
in
Code
section
8B.1.
13
The
bill
defines
“broadband
infrastructure”,
“communications
14
service
provider”,
and
“targeted
service
area”.
15
The
bill
permits
refunds
of
taxes,
interest,
or
penalties
16
arising
from
claims
resulting
from
the
enactment
of
the
bill
17
for
broadband
service
grants
that
were
taxable
during
the
tax
18
year
beginning
January
1,
2019,
but
before
January
1,
2020,
and
19
requires
such
claims
to
be
filed
prior
to
October
1,
2020.
20
The
bill
takes
effect
upon
enactment
and
applies
21
retroactively
to
tax
years
beginning
on
or
after
January
1,
22
2019.
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