Bill Text: IA HF607 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act excluding from the state corporate income tax certain income of public utilities furnishing water to the public, or furnishing sanitary sewage or storm water drainage disposal to the public, and including effective date and applicability provisions.(Formerly HF 423.)
Spectrum: Committee Bill
Status: (Engrossed - Dead) 2021-03-30 - Subcommittee: Dawson, Bolkcom, and Schultz. S.J. 714. [HF607 Detail]
Download: Iowa-2021-HF607-Introduced.html
House
File
607
-
Introduced
HOUSE
FILE
607
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HF
423)
A
BILL
FOR
An
Act
excluding
from
the
state
corporate
income
tax
certain
1
income
of
public
utilities
furnishing
water
to
the
public,
2
or
furnishing
sanitary
sewage
or
storm
water
drainage
3
disposal
to
the
public,
and
including
effective
date
and
4
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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H.F.
607
Section
1.
Section
422.35,
Code
2021,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
31.
Subtract,
to
the
extent
included,
the
3
income
of
a
public
utility
regulated
by
the
utilities
board
4
derived
from
the
operation
of
a
system
described
in
section
5
476.1,
subsection
3,
paragraph
“c”
or
“d”
.
6
Sec.
2.
Section
476.6,
Code
2021,
is
amended
by
adding
the
7
following
new
subsection:
8
NEW
SUBSECTION
.
22.
State
corporate
income
tax
exemption
——
9
customer
benefits.
Customers
of
a
public
utility
shall
receive
10
the
full
benefits
of
a
utility’s
reduced
state
corporate
income
11
tax
as
provided
in
section
422.35,
subsection
31.
The
board
12
shall
approve
rates
with
provision
for
adjustments
to
ensure
13
that
the
rates
are
accurate
and
that
customers
receive
the
full
14
benefits.
15
Sec.
3.
EFFECTIVE
DATE.
The
following
takes
effect
January
16
1,
2023:
17
The
section
of
this
Act
amending
section
422.35.
18
Sec.
4.
APPLICABILITY.
The
following
applies
to
tax
years
19
beginning
on
or
after
January
1,
2023:
20
The
section
of
this
Act
amending
section
422.35.
21
EXPLANATION
22
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
23
the
explanation’s
substance
by
the
members
of
the
general
assembly.
24
This
bill
excludes
from
the
state
corporate
income
tax
the
25
income
of
a
public
utility
regulated
by
the
utilities
board
26
derived
from
the
operation
of
a
system
that
furnishes
water
by
27
piped
distribution
system
to
the
public
for
compensation,
or
28
furnishes
sanitary
sewage
or
storm
water
drainage
disposal
by
29
piped
collection
system
to
the
public
for
compensation.
This
30
provision
of
the
bill
takes
effect
January
1,
2023,
and
applies
31
to
tax
years
beginning
on
or
after
that
date.
32
The
bill
also
requires
the
customers
of
a
public
utility
33
to
receive
the
full
benefits
of
a
utility’s
reduced
state
34
corporate
income
tax
that
result
from
the
bill.
The
bill
35
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