Bill Text: IA HF779 | 2019-2020 | 88th General Assembly | Enrolled
Bill Title: A bill for an act relating to the administration of the tax and related laws by the department of revenue, including the administration and modification of certain tax credits and refunds, the individual and corporate income taxes, franchise taxes, moneys and credits taxes, sales and use taxes, and automobile rental excise taxes, the assessment of property owned by certain long distance telephone companies, establishing a taxation and exemption of computers task force, extending the utility replacement task force, and providing for other properly related matters, making penalties applicable, and including effective date and retroactive applicability provisions. (Formerly HSB 257.) Various effective dates, see bill.
Spectrum: Committee Bill
Status: (Passed) 2019-05-16 - Signed by Governor. H.J. 1084. [HF779 Detail]
Download: Iowa-2019-HF779-Enrolled.html
House
File
779
-
Enrolled
House
File
779
AN
ACT
RELATING
TO
THE
ADMINISTRATION
OF
THE
TAX
AND
RELATED
LAWS
BY
THE
DEPARTMENT
OF
REVENUE,
INCLUDING
THE
ADMINISTRATION
AND
MODIFICATION
OF
CERTAIN
TAX
CREDITS
AND
REFUNDS,
THE
INDIVIDUAL
AND
CORPORATE
INCOME
TAXES,
FRANCHISE
TAXES,
MONEYS
AND
CREDITS
TAXES,
SALES
AND
USE
TAXES,
AND
AUTOMOBILE
RENTAL
EXCISE
TAXES,
THE
ASSESSMENT
OF
PROPERTY
OWNED
BY
CERTAIN
LONG
DISTANCE
TELEPHONE
COMPANIES,
ESTABLISHING
A
TAXATION
AND
EXEMPTION
OF
COMPUTERS
TASK
FORCE,
EXTENDING
THE
UTILITY
REPLACEMENT
TASK
FORCE,
AND
PROVIDING
FOR
OTHER
PROPERLY
RELATED
MATTERS,
MAKING
PENALTIES
APPLICABLE,
AND
INCLUDING
EFFECTIVE
DATE
AND
RETROACTIVE
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
House
File
779,
p.
2
DIVISION
I
INCOME
TAX
Section
1.
Section
422.4,
subsection
16,
paragraph
e,
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
follows:
Add
back
the
following
percentage
of
the
qualified
business
income
deduction
deductions
under
section
199A
sections
199A(a)
and
199A(g)
of
the
Internal
Revenue
Code
taken
and
allowable
in
calculating
federal
taxable
income
for
the
applicable
tax
year:
Sec.
2.
Section
422.9,
subsection
2A,
paragraph
a,
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
follows:
The
following
percentage
of
the
qualified
business
income
deduction
deductions
under
section
199A
sections
199A(a)
and
199A(g)
of
the
Internal
Revenue
Code
taken
and
allowable
in
calculating
federal
taxable
income
for
the
applicable
tax
year:
Sec.
3.
Section
422.9,
subsection
2A,
paragraph
b,
Code
2019,
is
amended
to
read
as
follows:
b.
Notwithstanding
paragraph
“a”
,
and
section
422.4,
subsection
16
,
paragraph
“e”
,
for
an
entity
electing
or
required
to
file
a
composite
return
under
section
422.13,
subsection
5
,
the
deduction
allowed
under
this
subsection
for
purposes
of
the
composite
return
shall
be
an
amount
equal
to
the
applicable
percentage
described
in
paragraph
“a”
of
the
deduction
deductions
that
would
be
allowable
for
federal
income
tax
purposes
under
section
199A
sections
199A(a)
and
199A(g)
of
the
Internal
Revenue
Code
by
an
individual
taxpayer
reporting
the
same
items
of
income
and
loss
that
are
included
in
the
composite
return.
Sec.
4.
Section
422.11S,
subsection
7,
paragraph
b,
Code
2019,
is
amended
to
read
as
follows:
b.
The
department
shall
authorize
a
school
tuition
organization
to
issue
tax
credit
certificates
for
contributions
made
to
the
school
tuition
organization.
The
aggregate
amount
of
tax
credit
certificates
that
the
department
shall
authorize
for
a
school
tuition
organization
for
a
tax
calendar
year
shall
be
determined
for
that
organization
pursuant
to
subsection
8
.
However,
a
school
tuition
organization
shall
not
be
authorized
to
issue
tax
credit
certificates
unless
the
organization
is
House
File
779,
p.
3
controlled
by
a
board
of
directors
consisting
of
at
least
seven
members.
The
names
and
addresses
of
the
members
shall
be
provided
to
the
department
and
shall
be
made
available
by
the
department
to
the
public,
notwithstanding
any
state
confidentiality
restrictions.
Sec.
5.
Section
422.11S,
subsection
8,
paragraph
a,
subparagraph
(2),
Code
2019,
is
amended
to
read
as
follows:
(2)
“Total
approved
tax
credits”
means
for
the
tax
year
beginning
in
the
2006
calendar
year,
two
million
five
hundred
thousand
dollars,
for
the
tax
year
beginning
in
the
2007
calendar
year,
five
million
dollars,
for
tax
calendar
years
beginning
on
or
after
January
1,
2008,
but
before
January
1,
2012,
seven
million
five
hundred
thousand
dollars,
for
tax
calendar
years
beginning
on
or
after
January
1,
2012,
but
before
January
1,
2014,
eight
million
seven
hundred
fifty
thousand
dollars,
and
for
tax
calendar
years
beginning
on
or
after
January
1,
2014,
but
before
January
1,
2019,
twelve
million
dollars,
and
for
tax
calendar
years
beginning
on
or
after
January
1,
2019,
thirteen
million
dollars.
Sec.
6.
Section
422.11S,
subsection
8,
paragraph
b,
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
follows:
Each
year
by
December
1,
the
department
shall
authorize
school
tuition
organizations
to
issue
tax
credit
certificates
for
the
following
tax
calendar
year.
However,
for
the
tax
year
beginning
in
the
2006
calendar
year
only,
the
department,
by
September
1,
2006,
shall
authorize
school
tuition
organizations
to
issue
tax
credit
certificates
for
the
2006
calendar
tax
year.
For
the
tax
year
beginning
in
the
2006
calendar
year
only,
each
school
served
by
a
school
tuition
organization
shall
submit
a
participation
form
to
the
department
by
August
1,
2006,
providing
the
certified
enrollment
as
of
the
third
Friday
of
September
2005,
along
with
the
school
tuition
organization
that
represents
the
school.
Tax
credit
certificates
available
for
issue
by
each
school
tuition
organization
shall
be
determined
in
the
following
manner:
Sec.
7.
Section
422.11S,
subsection
9,
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
follows:
A
school
tuition
organization
that
receives
a
voluntary
cash
House
File
779,
p.
4
or
noncash
contribution
pursuant
to
this
section
shall
report
to
the
department,
on
a
form
prescribed
by
the
department,
by
January
12
of
each
tax
calendar
year
all
of
the
following
information:
Sec.
8.
Section
422.11S,
subsection
9,
paragraphs
b
and
c,
Code
2019,
are
amended
to
read
as
follows:
b.
The
total
number
and
dollar
value
of
contributions
received
and
the
total
number
and
dollar
value
of
the
tax
credits
approved
during
the
previous
tax
calendar
year.
c.
A
list
of
the
individual
donors
for
the
previous
tax
calendar
year
that
includes
the
dollar
value
of
each
donation
and
the
dollar
value
of
each
approved
tax
credit.
Sec.
9.
Section
422.12C,
subsection
4,
Code
2019,
is
amended
to
read
as
follows:
4.
Married
taxpayers
who
have
filed
joint
federal
returns
electing
to
file
separate
returns
or
to
file
separately
on
a
combined
return
form
must
determine
the
child
and
dependent
care
credit
under
subsection
1
or
the
early
childhood
development
tax
credit
under
subsection
2
based
upon
their
combined
net
income
and
allocate
the
total
credit
amount
to
each
spouse
in
the
proportion
that
each
spouse’s
respective
net
income
bears
to
the
total
combined
net
income.
Nonresidents
or
part-year
residents
of
Iowa
must
determine
their
Iowa
child
and
dependent
care
credit
under
subsection
1
or
the
early
childhood
development
tax
credit
under
subsection
2
in
the
ratio
of
their
Iowa
source
net
income
to
their
all
source
net
income.
Nonresidents
or
part-year
residents
who
are
married
and
elect
to
file
separate
returns
or
to
file
separately
on
a
combined
return
form
must
allocate
the
Iowa
child
and
dependent
care
credit
under
subsection
1
or
the
early
childhood
development
tax
credit
under
subsection
2
between
the
spouses
in
the
ratio
of
each
spouse’s
Iowa
source
net
income
to
the
combined
Iowa
source
net
income
of
the
taxpayers.
Sec.
10.
Section
422.60,
subsection
2,
paragraph
b,
Code
2019,
is
amended
by
adding
the
following
new
subparagraph:
NEW
SUBPARAGRAPH
.
(6)
For
purposes
of
this
paragraph,
“Internal
Revenue
Code”
means
the
Internal
Revenue
Code
of
1954,
prior
to
the
date
of
its
redesignation
as
the
Internal
Revenue
Code
of
1986
by
the
Tax
Reform
Act
of
1986,
or
means
House
File
779,
p.
5
the
Internal
Revenue
Code
of
1986
as
amended
and
in
effect
on
December
21,
2017.
This
definition
shall
not
be
construed
to
include
any
amendment
to
the
Internal
Revenue
Code
enacted
after
the
date
specified
in
the
preceding
sentence,
including
any
amendment
with
retroactive
applicability
or
effectiveness.
Sec.
11.
LIKE-KIND
EXCHANGES
OF
PERSONAL
PROPERTY
UNDER
CORPORATE
INCOME
TAX
AND
FRANCHISE
TAX
FOR
TAX
YEAR
2019.
Notwithstanding
any
other
provision
of
law
to
the
contrary,
all
of
the
following
shall
apply
when
computing
net
income
for
purposes
of
the
corporation
income
tax
or
franchise
tax
under
section
422.35
for
tax
years
beginning
during
the
2019
calendar
year:
1.
The
rules
for
nonrecognition
of
gain
or
loss
from
exchanges
of
real
property
held
for
productive
use
or
investment
and
not
held
primarily
for
sale,
as
provided
in
section
1031
of
the
Internal
Revenue
Code,
as
amended
up
to
and
including
March
24,
2018,
apply
for
state
income
tax
purposes
with
regard
to
exchanges
of
real
property.
2.
The
rules
for
nonrecognition
of
gain
or
loss
from
exchanges
of
property
other
than
real
property
held
for
productive
use
or
investment
as
provided
in
section
1031
of
the
Internal
Revenue
Code,
as
amended
up
to
and
including
December
21,
2017,
apply
for
state
income
tax
purposes,
notwithstanding
any
other
provision
of
law
to
the
contrary.
If
the
taxpayer’s
federal
taxable
income
includes
gain
or
loss
from
property,
other
than
real
property
described
in
subsection
1,
and
the
taxpayer
elects
to
have
this
subsection
apply,
the
following
adjustments
shall
be
made:
a.
(1)
Subtract
the
total
amount
of
gain
related
to
the
sale
or
exchange
of
the
property
as
properly
reported
for
federal
tax
purposes
under
the
Internal
Revenue
Code.
(2)
Add
back
any
gain
related
to
the
sale
or
exchange
of
the
property
to
the
extent
such
gain
does
not
qualify
for
deferral
under
section
1031
of
the
Internal
Revenue
Code,
as
amended
up
to
and
including
December
21,
2017,
which
gain
shall
be
calculated
using
the
taxpayer’s
adjusted
basis
in
the
property
for
state
tax
purposes.
b.
(1)
Add
the
total
amount
of
loss
related
to
the
sale
or
exchange
of
the
property
as
properly
reported
for
federal
tax
House
File
779,
p.
6
purposes
under
the
Internal
Revenue
Code.
(2)
Subtract
any
loss
related
to
the
sale
or
exchange
of
the
property
to
the
extent
such
loss
does
not
qualify
for
deferral
under
section
1031
of
the
Internal
Revenue
Code,
as
amended
up
to
and
including
December
21,
2017,
which
loss
shall
be
calculated
using
the
taxpayer’s
adjusted
basis
in
the
property
for
state
tax
purposes.
c.
Any
other
adjustments
to
gains,
losses,
deductions,
or
tax
basis
for
the
property
given
up
or
received
in
the
sale
or
exchange
pursuant
to
rules
adopted
by
the
director.
Sec.
12.
REFUNDS
——
EARLY
CHILDHOOD
DEVELOPMENT
TAX
CREDIT.
Notwithstanding
any
provision
of
law
to
the
contrary,
for
tax
years
beginning
prior
to
January
1,
2019,
refunds
of
the
early
childhood
development
tax
credit
provided
in
section
422.12C,
subsection
2,
requested
on
or
after
the
effective
date
of
the
provision
of
this
division
of
this
Act
amending
section
422.12C,
subsection
4,
shall
not
exceed
the
amount
allowed
under
section
422.12C,
subsection
4,
as
amended
by
this
division
of
this
Act.
Sec.
13.
LEGISLATIVE
INTENT.
It
is
the
intent
of
the
general
assembly
that
the
provisions
of
this
division
of
this
Act
amending
section
422.11S
are
conforming
amendments
consistent
with
current
state
law,
and
that
the
amendments
do
not
change
the
application
of
current
law
but
instead
reflect
current
law
both
before
and
after
the
enactment
of
this
Act.
Sec.
14.
EFFECTIVE
DATE.
The
following,
being
deemed
of
immediate
importance,
take
effect
upon
enactment:
1.
The
section
of
this
division
of
this
Act
amending
section
422.12C,
subsection
4.
2.
The
section
of
this
division
of
this
Act
relating
to
refunds
for
the
early
childhood
development
tax
credit.
3.
The
section
of
this
division
of
this
Act
relating
to
like-kind
exchanges
of
personal
property
under
corporate
income
tax
and
franchise
tax.
Sec.
15.
RETROACTIVE
APPLICABILITY.
The
following
apply
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
or
after
that
date:
1.
The
section
of
this
division
of
this
Act
amending
section
422.4,
subsection
16,
paragraph
“e”,
unnumbered
paragraph
1.
House
File
779,
p.
7
2.
The
sections
of
this
division
of
this
Act
amending
section
422.9,
subsection
2A.
3.
The
section
of
this
division
of
this
Act
amending
section
422.12C,
subsection
4.
4.
The
section
of
this
division
of
this
Act
amending
section
422.60,
subsection
2,
paragraph
“b”.
Sec.
16.
RETROACTIVE
APPLICABILITY
——
LIKE-KIND
EXCHANGES
OF
PERSONAL
PROPERTY.
The
section
of
this
division
of
this
Act
relating
to
like-kind
exchanges
of
personal
property
under
corporate
income
tax
and
franchise
tax
applies
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
or
after
that
date,
but
before
January
1,
2020.
DIVISION
II
ADMINISTRATIVE
PROVISIONS
Sec.
17.
Section
422.20,
Code
2019,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
5.
The
department
may
permit,
by
rule,
the
disclosure
of
state
tax
information
to
a
person
a
taxpayer
has
authorized
to
receive
such
state
tax
information,
in
the
manner
prescribed
by
the
department.
Sec.
18.
Section
422.72,
Code
2019,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
8.
The
department
may
permit,
by
rule,
the
disclosure
of
state
tax
information
to
a
person
a
taxpayer
has
authorized
to
receive
such
state
tax
information,
in
the
manner
prescribed
by
the
department.
DIVISION
III
SALES
AND
USE
TAX
Sec.
19.
Section
423.1,
subsection
2,
paragraphs
b
and
c,
Code
2019,
are
amended
to
read
as
follows:
b.
Is
directly,
indirectly,
or
constructively
controlled
by
another
entity
person
.
c.
Is
subject
to
the
control
of
a
common
entity
person
.
A
common
entity
person
is
one
which
a
person
who
owns
directly
or
individually
indirectly
more
than
ten
percent
of
the
voting
securities
of
the
entity.
Sec.
20.
Section
423.2,
subsection
1,
paragraph
a,
subparagraph
(5),
subparagraph
division
(a),
Code
2019,
is
amended
to
read
as
follows:
House
File
779,
p.
8
(a)
If
a
service
or
warranty
contract
does
not
specify
a
fee
amount
for
nontaxable
services
or
taxable
personal
property,
the
tax
imposed
pursuant
to
this
section
shall
be
imposed
upon
an
amount
equal
to
one-half
of
the
sales
price
of
the
contract.
Sec.
21.
Section
423.2,
subsection
6,
paragraph
k,
Code
2019,
is
amended
to
read
as
follows:
k.
Carpentry
repair
and
installation
.
Sec.
22.
Section
423.3,
Code
2019,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
16A.
a.
The
sales
price
from
the
sale
of
a
grain
bin,
including
material
or
replacement
parts
used
to
construct
or
repair
a
grain
bin.
b.
For
purposes
of
this
subsection,
“grain
bin”
means
property
that
is
vented
and
covered
with
corrugated
metal
or
similar
material,
and
that
is
primarily
used
to
hold
loose
grain
for
drying
or
storage.
Sec.
23.
Section
423.3,
subsection
47,
paragraph
c,
subparagraph
(3),
Code
2019,
is
amended
by
striking
the
subparagraph
and
inserting
in
lieu
thereof
the
following:
(3)
The
following
within
the
scope
of
section
427A.1,
subsection
1,
paragraphs
“h”
and
“i”
:
(a)
Computers.
(b)
Machinery.
(c)
Equipment,
including
pollution
control
equipment.
(d)
Replacement
parts.
(e)
Supplies.
(f)
Materials
used
to
construct
or
self-construct
the
following:
(i)
Computers.
(ii)
Machinery.
(iii)
Equipment,
including
pollution
control
equipment.
(iv)
Replacement
parts.
(v)
Supplies.
Sec.
24.
Section
423.3,
subsection
104,
paragraph
a,
Code
2019,
is
amended
to
read
as
follows:
a.
The
sales
price
of
specified
digital
products
and
of
prewritten
computer
software
sold,
and
of
enumerated
services
described
in
section
423.2,
subsection
1,
paragraph
“a”
,
subparagraph
(5),
or
section
423.2,
subsection
6
,
paragraphs
House
File
779,
p.
9
“bq”
,
“br”
,
“bs”
,
and
“bu”
furnished,
to
a
commercial
enterprise
for
use
exclusively
by
the
commercial
enterprise.
The
use
of
prewritten
computer
software,
a
specified
digital
product,
or
service
fails
to
qualify
as
a
use
exclusively
by
the
commercial
enterprise
if
its
use
for
noncommercial
purposes
is
more
than
de
minimis.
Sec.
25.
Section
423.14A,
subsection
3,
paragraph
b,
Code
2019,
is
amended
by
striking
the
paragraph.
Sec.
26.
Section
423.14A,
subsection
3,
paragraph
d,
subparagraph
(1),
Code
2019,
is
amended
to
read
as
follows:
(1)
A
marketplace
facilitator
that
makes
or
facilitates
Iowa
sales
on
its
own
behalf
or
for
one
or
more
marketplace
sellers
equal
to
or
exceeding
one
hundred
thousand
dollars
,
or
in
two
hundred
or
more
separate
transactions,
for
an
immediately
preceding
calendar
year
or
a
current
calendar
year.
Sec.
27.
Section
423.14A,
subsection
3,
paragraph
e,
subparagraph
(1),
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
follows:
A
referrer
if,
for
any
immediately
preceding
calendar
year
or
a
current
calendar
year,
one
hundred
thousand
dollars
or
more
in
Iowa
sales
or
two
hundred
or
more
separate
Iowa
sales
transactions
result
from
referrals
from
a
platform
of
the
referrer.
A
referrer
is
not
required
to
collect
and
remit
sales
and
use
tax
pursuant
to
this
paragraph
if
the
referrer
does
all
of
the
following:
Sec.
28.
Section
423.14A,
subsection
3,
paragraph
e,
subparagraph
(1),
subparagraph
division
(c),
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
follows:
The
referrer
provides
the
department
with
monthly
annual
reports
in
an
electronic
format
and
in
the
manner
prescribed
by
the
department,
which
monthly
annual
reports
contain
all
of
the
following:
Sec.
29.
Section
423.14A,
subsection
3,
paragraph
e,
Code
2019,
is
amended
by
adding
the
following
new
subparagraph:
NEW
SUBPARAGRAPH
.
(5)
This
paragraph
is
subject
to
implementation
by
the
department
by
rule
and
shall
not
require
a
referrer
to
collect
tax
or
comply
with
the
notice
and
reporting
requirements
and
other
provisions
of
this
paragraph
unless
and
until
such
administrative
rules
take
effect.
House
File
779,
p.
10
Sec.
30.
Section
423.48,
subsection
2,
paragraph
c,
Code
2019,
is
amended
by
striking
the
paragraph.
Sec.
31.
TAXATION
AND
EXEMPTION
OF
COMPUTERS
TASK
FORCE.
A
taxation
and
exemption
of
computers
task
force
is
created.
The
department
of
revenue
shall
initiate
and
coordinate
the
task
force
and
provide
staff
assistance.
It
is
the
intent
of
the
general
assembly
that
the
task
force
include
representatives
of
the
department
of
revenue;
a
commercial
enterprise
that
claims
an
exemption
for
computers
under
section
423.3,
subsection
47;
an
association
that
represents
manufacturers
and
other
industrial
producers;
and
an
association
that
represents
business
tax
issues.
The
director
of
revenue
or
the
director’s
designee
shall
serve
as
chairperson
of
the
task
force.
The
task
force
shall
be
charged
with
reviewing
the
definition
of
“computer”
as
used
throughout
the
portions
of
the
Iowa
Code
and
the
Iowa
Administrative
Code
administered
by
the
department
of
revenue
including
the
exemption
for
computers
provided
in
section
423.3,
subsection
47,
paragraph
“a”,
subparagraph
(4).
If
the
task
force
recommends
modifications
to
the
current
definition
of
“computer”
including
the
exemption
for
computers
provided
in
section
423.3,
subsection
47,
paragraph
“a”,
subparagraph
(4),
the
department
of
revenue
shall
provide
any
recommendations
to
the
general
assembly
by
January
1,
2020.
Sec.
32.
EFFECTIVE
DATE.
The
following,
being
deemed
of
immediate
importance,
take
effect
upon
enactment:
1.
The
section
of
this
division
of
this
Act
amending
section
423.1,
subsection
2,
paragraphs
“b”
and
“c”.
2.
The
section
of
this
division
of
this
Act
amending
section
423.3,
subsection
47,
paragraph
“c”,
subparagraph
(3).
Sec.
33.
RETROACTIVE
APPLICABILITY.
The
following
applies
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
or
after
that
date:
The
section
of
this
division
of
this
Act
amending
section
423.1,
subsection
2,
paragraphs
“b”
and
“c”.
Sec.
34.
RETROACTIVE
APPLICABILITY.
The
following
applies
retroactively
to
January
1,
2016,
for
tax
years
beginning
on
or
after
that
date:
The
section
of
this
division
of
this
Act
amending
section
House
File
779,
p.
11
423.3,
subsection
47,
paragraph
“c”,
subparagraph
(3).
DIVISION
IV
AUTOMOBILE
RENTAL
EXCISE
TAX
Sec.
35.
Section
423.14A,
subsection
1,
paragraph
b,
subparagraph
(3),
Code
2019,
is
amended
to
read
as
follows:
(3)
A
“rental
platform”
,
as
defined
in
section
423C.2
,
that
meets
the
requirements
described
in
person
who
is
not
required
to
collect
and
remit
automobile
rental
excise
tax
pursuant
to
section
423C.3,
subsection
3
,
paragraph
“c”
,
subparagraph
(2),
shall
not
be
considered
a
“marketplace
facilitator”
with
respect
to
any
sale
of
a
transportation
service
under
section
423.2,
subsection
6
,
paragraph
“bf”
,
or
section
423.5,
subsection
1
,
paragraph
“e”
,
consisting
of
the
rental
of
vehicles
subject
to
registration
which
are
registered
for
a
gross
weight
of
thirteen
tons
or
less
for
a
period
of
sixty
days
or
less.
Sec.
36.
Section
423C.2,
subsection
3,
paragraphs
a
and
b,
Code
2019,
are
amended
to
read
as
follows:
a.
A
person
or
any
affiliate
of
a
person
that
owns
or
controls
an
automobile
and
makes
the
automobile
available
for
rent
through
the
person
or
any
affiliate,
or
through
a
rental
platform
or
rental
facilitator
any
other
person
.
b.
A
person
or
any
affiliate
of
a
person
who
possesses
or
acquires
a
right
or
interest
in
any
automobile
with
an
intent
to
rent
the
automobile
to
another
person
,
or
through
the
person
or
any
affiliate,
or
through
a
rental
platform
or
a
rental
facilitator
any
other
person
.
Sec.
37.
Section
423C.2,
subsection
6,
Code
2019,
is
amended
to
read
as
follows:
6.
“Facilitation
fee”
means
any
consideration,
by
whatever
name
called,
that
a
rental
facilitator
or
a
rental
platform
person
charges
to
a
user
for
facilitating
the
user’s
rental
of
an
automobile.
“Facilitation
fee”
does
not
include
any
commission
an
automobile
provider
pays
to
a
rental
facilitator
or
a
rental
platform
person
for
facilitating
the
rental
of
an
automobile.
Sec.
38.
Section
423C.2,
Code
2019,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
6A.
“Host”
means
the
registered
owner
of
an
automobile
made
available
for
sharing
through
a
peer-to-peer
House
File
779,
p.
12
automobile
sharing
marketplace.
Sec.
39.
Section
423C.2,
subsections
9
and
10,
Code
2019,
are
amended
by
striking
the
subsections.
Sec.
40.
Section
423C.2,
subsection
11,
Code
2019,
is
amended
to
read
as
follows:
11.
“Rental
price”
means
all
consideration
charged
for
the
renting
and
facilitation
of
renting
of
an
automobile
before
taxes,
including
but
not
limited
to
facilitation
fees,
reservation
fees,
services
fees,
nonrefundable
deposits,
and
any
other
direct
or
indirect
charge
made
or
consideration
provided
in
connection
with
the
renting
or
facilitation
of
renting
of
an
automobile
the
same
as
“sales
price”
as
defined
in
section
423.1,
which
term
includes
but
is
not
limited
to
facilitation
fees,
reservation
fees,
services
fees,
nonrefundable
deposits,
and
any
other
direct
or
indirect
charge
made
or
consideration
provided
in
connection
with
the
renting
or
facilitation
of
renting
an
automobile
.
Sec.
41.
Section
423C.3,
Code
2019,
is
amended
to
read
as
follows:
423C.3
Tax
on
rental
of
automobiles
——
collection
and
remittance
of
tax.
1.
For
purposes
of
this
section
:
a.
“Discount
rental
charge”
means
the
amount
an
automobile
provider
charges
to
a
rental
facilitator
for
the
rental
of
an
automobile,
excluding
any
applicable
tax.
b.
“Travel
package”
means
an
automobile
rental
bundled
with
one
or
more
separate
components
such
as
lodging,
air
transportation,
or
similar
items
and
charged
for
a
single
retail
price.
2.
1.
A
tax
of
five
percent
is
imposed
upon
the
rental
price
of
an
automobile
if
the
rental
transaction
is
subject
to
the
sales
and
services
tax
under
chapter
423,
subchapter
II
,
or
the
use
tax
under
chapter
423,
subchapter
III
.
The
tax
shall
not
be
imposed
on
any
rental
transaction
not
taxable
under
the
state
sales
and
services
tax,
as
provided
in
section
423.3
,
or
the
state
use
tax,
as
provided
in
section
423.6
,
on
automobile
rental
receipts.
3.
2.
This
subsection
shall
govern
the
collection
and
remittance
of
the
tax
imposed
under
subsection
2
The
tax
House
File
779,
p.
13
imposed
under
subsection
1
shall
be
collected
and
remitted
to
the
department
by
all
persons
required
to
collect
state
sales
and
use
tax
on
the
rental
transaction
under
chapter
423
.
a.
Unless
otherwise
provided
in
this
subsection
,
the
automobile
provider
shall
collect
the
tax
by
adding
the
tax
to
the
rental
price
of
the
automobile
and
the
tax,
when
collected,
shall
be
stated
as
a
distinct
item
separate
and
apart
from
the
rental
price
of
the
automobile
and
the
sales
and
services
tax
imposed
under
chapter
423,
subchapter
II
,
or
the
use
tax
imposed
under
chapter
423,
subchapter
III
.
b.
If
a
transaction
for
the
rental
of
an
automobile
involves
a
rental
facilitator,
all
of
the
following
shall
occur
in
the
order
prescribed:
(1)
The
rental
facilitator
shall
collect
the
tax
on
any
rental
price
that
the
user
pays
to
the
rental
facilitator
in
the
same
manner
as
an
automobile
provider
under
paragraph
“a”
.
(2)
(a)
Unless
otherwise
required
by
rule
or
order
of
the
department,
the
rental
facilitator
shall
remit
to
the
automobile
provider
that
portion
of
the
tax
collected
on
the
rental
price
that
represents
the
discount
rental
charge.
(b)
No
assessment
shall
be
made
against
a
rental
facilitator
for
tax
due
on
a
discount
rental
charge
if
the
rental
facilitator
collected
the
tax
and
remitted
it
to
an
automobile
provider
that
has
a
valid
tax
permit
required
under
this
chapter
or
under
chapter
423
.
This
subparagraph
division
shall
not
apply
if
the
rental
facilitator
and
automobile
provider
are
affiliates,
or
if
the
department
requires
the
rental
facilitator
to
remit
taxes
collected
on
that
portion
of
the
sales
price
that
represents
the
discount
rental
charge
directly
to
the
department.
(3)
The
rental
facilitator
shall
remit
any
remaining
tax
it
collected
to
the
department.
(4)
(a)
The
automobile
provider
shall
collect
and
remit
to
the
department
any
taxes
the
rental
facilitator
remitted
to
the
automobile
provider,
and
shall
collect
and
remit
to
the
department
any
taxes
due
on
any
amount
of
rental
price
the
user
paid
to
the
automobile
provider.
(b)
No
assessment
shall
be
made
against
an
automobile
provider
for
any
tax
due
on
a
discount
rental
charge
that
House
File
779,
p.
14
was
not
remitted
to
the
automobile
provider
by
a
rental
facilitator.
This
subparagraph
division
shall
not
apply
if
the
automobile
provider
and
the
rental
facilitator
are
affiliates.
(5)
Notwithstanding
any
other
provision
of
this
paragraph
to
the
contrary,
if
a
rental
facilitator
and
its
affiliates
facilitate
total
rentals
under
this
chapter
and
chapter
423A
that
are
equal
to
or
less
than
an
aggregate
amount
of
rental
price
and
sales
price
of
ten
thousand
dollars
for
an
immediately
preceding
calendar
year
or
a
current
calendar
year,
or
in
ten
or
fewer
separate
transactions
for
an
immediately
preceding
calendar
year
or
a
current
calendar
year,
the
rental
facilitator
shall
not
be
required
to
collect
tax
on
the
amount
of
sales
price
that
represents
the
rental
facilitator’s
facilitation
fee.
c.
(1)
If
a
transaction
for
the
rental
of
an
automobile
involves
a
rental
platform,
other
than
a
rental
platform
described
in
subparagraph
(2),
the
rental
platform
shall
collect
and
remit
the
tax
imposed
under
this
chapter
in
the
same
manner
as
an
automobile
provider
under
paragraph
“a”
.
(2)
3.
A
rental
platform
person
is
not
required
to
collect
and
remit
the
tax
imposed
under
this
chapter
in
the
same
manner
as
an
automobile
provider
under
paragraph
“a”
if
the
rental
platform
person
meets
all
of
the
following
requirements:
a.
The
person
or
any
affiliate
of
the
person
is
not
an
automobile
provider.
b.
The
person
or
any
affiliate
of
the
person
facilitates
the
renting
or
sharing
of
an
automobile
by
doing
all
of
the
following:
(1)
The
person
owns,
operates,
or
controls
a
peer-to-peer
automobile
sharing
marketplace
that
allows
a
host
or
an
automobile
provider
who
is
not
an
affiliate
of
the
person
to
offer
or
list
an
automobile
for
sharing
or
rent
on
the
marketplace.
For
purposes
of
this
paragraph,
it
is
immaterial
whether
or
not
the
automobile
provider
has
a
tax
permit
under
this
chapter
or
chapter
423
or
whether
the
automobile
is
owned
by
a
natural
person
or
by
a
business
entity.
(2)
The
person
or
affiliate
of
the
person
collects
or
processes
the
rental
price
charged
to
the
user.
(a)
c.
The
only
sales
the
rental
platform
person
and
House
File
779,
p.
15
its
affiliates
of
the
person
facilitate
that
are
subject
to
tax
under
chapter
423
are
sales
of
a
transportation
service
under
section
423.2,
subsection
6
,
paragraph
“bf”
,
or
section
423.5,
subsection
1
,
paragraph
“e”
,
consisting
of
the
rental
of
vehicles
subject
to
registration
which
are
registered
for
a
gross
weight
of
thirteen
tons
or
less
for
a
period
of
sixty
days
or
less.
(b)
The
rental
platform
operates
a
peer-to-peer
automobile
sharing
marketplace.
(3)
4.
For
any
rental
transaction
for
which
the
rental
platform
a
person
is
required
to
or
elects
to
collect
and
remit
the
tax
under
this
chapter
,
the
rental
platform
person
shall
also
be
liable
for
the
collection
and
remittance
of
any
sales
or
use
tax
due
on
that
transaction
under
section
423.2,
subsection
6
,
paragraph
“bf”
,
or
section
423.5,
subsection
1
,
paragraph
“e”
,
notwithstanding
any
other
provision
to
the
contrary
in
chapter
423
.
(4)
5.
For
any
rental
transaction
for
which
the
rental
platform
person
is
not
required
to
collect
and
remit
the
tax
under
this
chapter
as
provided
under
subparagraph
(2)
subsection
3
,
the
automobile
provider
shall
be
solely
liable
for
any
amount
of
uncollected
or
unremitted
tax
under
this
chapter
and
chapter
423
.
DIVISION
V
TELEPHONE
COMPANY
PROPERTY
Sec.
42.
NEW
SECTION
.
433.4A
Competitive
long
distance
telephone
company
property.
For
assessment
years
beginning
before
January
1,
2022,
the
director
of
revenue
shall
assess
the
property
of
a
long
distance
telephone
company,
as
defined
in
section
476.1D,
subsection
10,
Code
2018,
previously
classified
by
the
utilities
board
as
a
competitive
long
distance
telephone
company
under
section
476.1D,
subsection
10,
Code
2018,
which
property
is
first
assessed
for
taxation
in
this
state
on
or
after
January
1,
1996,
in
the
same
manner
as
all
other
property
assessed
as
commercial
property
by
the
local
assessor
under
chapters
427,
427A,
427B,
428,
and
441.
Sec.
43.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
House
File
779,
p.
16
Sec.
44.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
July
1,
2018.
DIVISION
VI
TARGETED
JOBS
WITHHOLDING
CREDIT
Sec.
45.
Section
403.19A,
subsection
3,
paragraph
c,
subparagraph
(2),
Code
2019,
is
amended
to
read
as
follows:
(2)
The
pilot
project
city
and
the
economic
development
authority
shall
not
enter
into
a
withholding
agreement
after
June
30,
2019
2021
.
DIVISION
VII
SCHOOL
TUITION
ORGANIZATION
TAX
CREDITS
Sec.
46.
Section
422.11S,
subsection
8,
paragraph
a,
subparagraph
(2),
Code
2019,
is
amended
to
read
as
follows:
(2)
“Total
approved
tax
credits”
means
for
the
tax
year
beginning
in
the
2006
calendar
year,
two
million
five
hundred
thousand
dollars,
for
the
tax
year
beginning
in
the
2007
calendar
year,
five
million
dollars,
for
tax
years
beginning
on
or
after
January
1,
2008,
but
before
January
1,
2012,
seven
million
five
hundred
thousand
dollars,
for
tax
years
beginning
on
or
after
January
1,
2012,
but
before
January
1,
2014,
eight
million
seven
hundred
fifty
thousand
dollars,
and
for
tax
years
beginning
on
or
after
January
1,
2014,
but
before
January
1,
2019,
twelve
million
dollars,
and
for
tax
years
beginning
on
or
after
January
1,
2019,
but
before
January
1,
2020,
thirteen
million
dollars
,
and
for
tax
years
beginning
on
or
after
January
1,
2020,
fifteen
million
dollars
.
Sec.
47.
CONTINGENT
CODE
EDITOR
DIRECTIVE.
The
Code
editor
is
directed
to
harmonize
the
section
of
this
division
of
this
Act
amending
section
422.11S
with
the
other
division
of
this
Act
amending
section
422.11S,
if
enacted,
by
changing
tax
year
to
calendar
year
where
appropriate
and
to
make
other
related
changes,
if
necessary,
to
effectuate
such
changes.
DIVISION
VIII
INCOME
TAX
CHECKOFFS
Sec.
48.
Section
173.22,
subsection
2,
Code
2019,
is
amended
to
read
as
follows:
2.
A
foundation
fund
is
created
within
the
state
treasury
composed
of
moneys
appropriated
or
available
to
and
obtained
or
accepted
by
the
foundation.
The
foundation
fund
shall
include
House
File
779,
p.
17
moneys
credited
to
the
fund
as
provided
in
section
422.12D
422.12I
.
Sec.
49.
Section
422.12E,
Code
2019,
is
amended
to
read
as
follows:
422.12E
Income
tax
return
checkoffs
limited.
1.
For
tax
years
beginning
on
or
after
January
1,
2019,
there
There
shall
be
allowed
no
more
than
four
income
tax
return
checkoffs
on
each
income
tax
return.
For
tax
years
beginning
on
or
after
January
1,
2017,
when
the
same
four
income
tax
return
checkoffs
have
been
provided
on
the
income
tax
return
for
two
consecutive
tax
years,
the
two
checkoffs
for
which
the
least
amount
has
been
contributed,
in
the
aggregate
for
the
first
tax
year
and
through
March
15
after
the
end
of
the
second
tax
year,
are
repealed
on
December
31
after
the
end
of
the
second
tax
year
and
shall
be
removed
from
the
return
form
.
2.
If
more
checkoffs
are
enacted
in
the
same
session
of
the
general
assembly
than
there
is
space
for
inclusion
on
the
individual
tax
return
form,
the
checkoffs
with
the
earliest
enacted
checkoffs
date
of
enactment
as
determined
pursuant
to
section
3.7
for
which
there
is
space
for
inclusion
on
the
return
form
shall
be
included
on
the
return
form,
and
all
other
checkoffs
enacted
during
that
session
of
the
general
assembly
are
repealed
on
December
31
of
the
year
of
enactment
.
If
more
checkoffs
are
enacted
in
the
same
session
of
the
general
assembly
than
there
is
space
for
inclusion
on
the
individual
income
tax
form
and
the
additional
checkoffs
are
enacted
on
the
same
day
and
it
is
indeterminable
which
checkoffs
have
the
earliest
date
of
enactment
pursuant
to
section
3.7
,
the
director
shall
determine
which
checkoffs
shall
be
included
on
the
return
form
,
and
all
other
checkoffs
not
included
on
the
return
form
shall
be
repealed
on
December
31
of
the
year
of
enactment
and
shall
not
be
included
on
the
return
form
.
3.
a.
By
July
1
of
the
year
in
which
two
checkoffs
are
repealed
pursuant
to
subsection
1,
the
department
shall
notify
the
Iowa
Code
editor
which
two
checkoffs
received
the
least
amount
of
contributions
and
are
repealed.
b.
By
September
1
of
any
applicable
year,
the
department
shall
notify
the
Iowa
Code
editor
of
any
repeal
pursuant
to
subsection
2.
House
File
779,
p.
18
Sec.
50.
NEW
SECTION
.
422.12G
Joint
income
tax
checkoff
for
veterans
trust
fund
and
volunteer
fire
fighter
preparedness
fund.
1.
A
person
who
files
an
individual
or
a
joint
income
tax
return
with
the
department
of
revenue
under
section
422.13
may
designate
one
dollar
or
more
to
be
paid
jointly
to
the
veterans
trust
fund
created
in
section
35A.13
and
to
the
volunteer
fire
fighter
preparedness
fund
created
in
section
100B.13.
If
the
refund
due
on
the
return
or
the
payment
remitted
with
the
return
is
insufficient
to
pay
the
additional
amount
designated
by
the
taxpayer,
the
amount
designated
shall
be
reduced
to
the
remaining
amount
of
refund
or
the
remaining
amount
remitted
with
the
return.
The
designation
of
a
contribution
under
this
section
is
irrevocable.
2.
The
director
of
revenue
shall
draft
the
income
tax
form
to
allow
the
designation
of
contributions
to
the
veterans
trust
fund
and
to
the
volunteer
fire
fighter
preparedness
fund
as
one
checkoff
on
the
tax
return.
The
department
of
revenue,
on
or
before
January
31,
shall
transfer
one-half
of
the
total
amount
designated
on
the
tax
return
forms
due
in
the
preceding
calendar
year
to
the
veterans
trust
fund
and
the
remaining
one-half
to
the
volunteer
fire
fighter
preparedness
fund.
However,
before
a
checkoff
pursuant
to
this
section
shall
be
permitted,
all
liabilities
on
the
books
of
the
department
of
administrative
services
and
accounts
identified
as
owing
under
section
8A.504
shall
be
satisfied.
3.
The
department
of
revenue
shall
adopt
rules
to
administer
this
section.
4.
This
section
is
subject
to
repeal
under
section
422.12E.
Sec.
51.
Section
422.12H,
Code
2019,
is
amended
to
read
as
follows:
422.12H
Income
tax
checkoff
for
fish
and
game
protection
fund.
1.
A
person
who
files
an
individual
or
a
joint
income
tax
return
with
the
department
of
revenue
under
section
422.13
may
designate
a
contribution
to
the
state
fish
and
game
protection
fund
authorized
pursuant
to
section
456A.16
.
2.
This
section
is
subject
to
repeal
under
section
422.12E.
Sec.
52.
NEW
SECTION
.
422.12I
Income
tax
checkoff
for
the
Iowa
state
fair
foundation
fund.
House
File
779,
p.
19
1.
A
person
who
files
an
individual
or
a
joint
income
tax
return
with
the
department
of
revenue
under
section
422.13
may
designate
one
dollar
or
more
to
be
paid
to
the
foundation
fund
of
the
Iowa
state
fair
foundation
as
established
in
section
173.22.
If
the
refund
due
on
the
return
or
the
payment
remitted
with
the
return
is
insufficient
to
pay
the
amount
designated
by
the
taxpayer
to
the
foundation
fund,
the
amount
designated
shall
be
reduced
to
the
remaining
amount
of
the
refund
or
the
remaining
amount
remitted
with
the
return.
The
designation
of
a
contribution
to
the
foundation
fund
under
this
section
is
irrevocable.
2.
The
director
of
revenue
shall
draft
the
income
tax
form
to
allow
the
designation
of
contributions
to
the
foundation
fund
on
the
tax
return.
The
department,
on
or
before
January
31,
shall
transfer
the
total
amount
designated
on
the
tax
form
due
in
the
preceding
year
to
the
foundation
fund.
However,
before
a
checkoff
pursuant
to
this
section
shall
be
permitted,
all
liabilities
on
the
books
of
the
department
of
administrative
services
and
accounts
identified
as
owing
under
section
8A.504
shall
be
satisfied.
3.
The
Iowa
state
fair
board
may
authorize
payment
from
the
foundation
fund
for
purposes
of
supporting
foundation
activities.
4.
The
department
of
revenue
shall
adopt
rules
to
implement
this
section.
5.
This
section
is
subject
to
repeal
under
section
422.12E.
DIVISION
IX
POWERS
AND
DUTIES
OF
DIRECTOR
OF
REVENUE
Sec.
53.
Section
421.17,
Code
2019,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
35.
To
audit
and
examine
all
taxes
collected
or
administered
by
the
department.
DIVISION
X
SALES
AND
USE
TAX
EXEMPTIONS
RELATED
TO
MANUFACTURERS
Sec.
54.
Section
423.3,
subsection
47,
paragraph
d,
subparagraph
(4),
subparagraph
division
(c),
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
follows:
“Manufacturer”
does
not
include
persons
who
are
not
commonly
understood
as
manufacturers,
including
but
not
limited
to
House
File
779,
p.
20
persons
primarily
engaged
in
any
of
the
following
activities:
Sec.
55.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
56.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
May
30,
2018.
DIVISION
XI
RESEARCH
ACTIVITIES
TAX
CREDIT
Sec.
57.
Section
422.10,
subsection
1,
paragraph
a,
subparagraph
(1),
subparagraph
division
(a),
Code
2019,
is
amended
to
read
as
follows:
(a)
The
business
is
engaged
in
the
manufacturing,
life
sciences,
agriscience,
software
engineering,
or
aviation
and
aerospace
industry.
Sec.
58.
Section
422.10,
subsection
1,
paragraph
a,
subparagraph
(1),
subparagraph
division
(b),
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
follows:
Persons
that
shall
not
be
considered
to
be
engaged
in
the
manufacturing,
life
sciences,
agriscience,
software
engineering,
or
aviation
and
aerospace
industry,
and
thus
are
not
eligible
for
the
credit,
include
but
are
not
limited
to
all
of
the
following:
Sec.
59.
Section
422.33,
subsection
5,
paragraph
e,
subparagraph
(1),
subparagraph
division
(a),
Code
2019,
is
amended
to
read
as
follows:
(a)
The
business
is
engaged
in
the
manufacturing,
life
sciences,
agriscience,
software
engineering,
or
aviation
and
aerospace
industry.
Sec.
60.
Section
422.33,
subsection
5,
paragraph
e,
subparagraph
(1),
subparagraph
division
(b),
unnumbered
paragraph
1,
Code
2019,
is
amended
to
read
as
follows:
Persons
that
shall
not
be
considered
to
be
engaged
in
the
manufacturing,
life
sciences,
agriscience,
software
engineering,
or
aviation
and
aerospace
industry,
and
thus
are
not
eligible
for
the
credit,
include
but
are
not
limited
to
all
of
the
following:
DIVISION
XII
ADOPTION
TAX
CREDIT
Sec.
61.
Section
422.12A,
subsection
2,
Code
2019,
is
amended
to
read
as
follows:
House
File
779,
p.
21
2.
The
taxes
imposed
under
this
division
,
less
the
credits
allowed
under
section
422.12
,
shall
be
reduced
by
an
adoption
tax
credit
equal
to
the
amount
of
qualified
adoption
expenses
paid
or
incurred
by
the
taxpayer
during
the
tax
year
in
connection
with
the
adoption
of
a
child
by
the
taxpayer,
not
to
exceed
five
thousand
dollars
per
adoption.
Sec.
62.
Section
422.12A,
Code
2019,
is
amended
by
adding
the
following
new
subsection:
NEW
SUBSECTION
.
3A.
The
credit
under
this
section
with
respect
to
any
qualified
adoption
expense
shall
be
allowed
during
a
tax
year
as
follows:
a.
For
any
qualified
adoption
expense
paid
or
incurred
prior
to
or
during
the
tax
year
in
which
the
adoption
becomes
final,
the
tax
year
in
which
the
adoption
becomes
final.
b.
For
any
qualified
adoption
expense
paid
or
incurred
after
the
tax
year
in
which
the
adoption
becomes
final,
the
tax
year
in
which
an
adoption
expense
is
paid
or
incurred.
Sec.
63.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
XIII
UTILITY
REPLACEMENT
TASK
FORCE
Sec.
64.
Section
437A.15,
subsection
7,
paragraph
b,
Code
2019,
is
amended
to
read
as
follows:
b.
The
task
force
shall
study
the
effects
of
the
replacement
taxes
under
this
chapter
and
chapter
437B
on
local
taxing
authorities,
local
taxing
districts,
consumers,
and
taxpayers
through
January
1,
2019
2024
.
If
the
task
force
recommends
modifications
to
the
replacement
tax
that
will
further
the
purposes
of
tax
neutrality
for
local
taxing
authorities,
local
taxing
districts,
taxpayers,
and
consumers,
consistent
with
the
stated
purposes
of
this
chapter
,
the
department
of
management
shall
transmit
those
recommendations
to
the
general
assembly.
DIVISION
XIV
FRANCHISE
TAX
——
ALTERNATIVE
MINIMUM
TAX
(AMT)
REPEAL
Sec.
65.
Section
422.60,
subsection
2,
Code
2019,
is
amended
by
adding
the
following
new
paragraph:
NEW
PARAGRAPH
.
c.
This
subsection
is
repealed
January
1,
2021,
for
tax
years
beginning
on
or
after
that
date.
House
File
779,
p.
22
Sec.
66.
Section
422.60,
subsection
3,
Code
2019,
is
amended
to
read
as
follows:
3.
a.
(1)
There
For
tax
years
beginning
before
January
1,
2022,
there
is
allowed
as
a
credit
against
the
tax
determined
in
section
422.63
for
a
tax
year
an
amount
equal
to
the
minimum
tax
credit
for
that
tax
year.
(2)
The
minimum
tax
credit
for
a
tax
year
is
the
excess,
if
any,
of
the
net
minimum
tax
imposed
for
all
prior
tax
years
beginning
on
or
after
January
1,
1987,
but
before
January
1,
2021,
over
the
amount
allowable
as
a
credit
under
this
subsection
for
those
prior
tax
years.
b.
(1)
The
allowable
credit
under
paragraph
“a”
for
a
tax
year
beginning
before
January
1,
2021,
shall
not
exceed
the
excess,
if
any,
of
the
tax
determined
in
section
422.63
over
the
state
alternative
minimum
tax
as
determined
in
subsection
2
.
The
allowable
credit
under
paragraph
“a”
for
a
tax
year
beginning
in
the
2021
calendar
year
shall
not
exceed
the
tax
determined
in
section
422.63.
(2)
The
net
minimum
tax
for
a
tax
year
is
the
excess,
if
any,
of
the
tax
determined
in
subsection
2
for
the
tax
year
over
the
tax
determined
in
section
422.63
for
the
tax
year.
c.
This
subsection
is
repealed
January
1,
2022,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
XV
GEOTHERMAL
HEAT
PUMP
TAX
CREDIT
Sec.
67.
NEW
SECTION
.
422.12N
Geothermal
heat
pump
tax
credit.
1.
The
taxes
imposed
under
this
division,
less
the
credits
allowed
under
section
422.12,
shall
be
reduced
by
a
geothermal
heat
pump
tax
credit
equal
to
twenty
percent
of
the
federal
residential
energy
efficient
property
tax
credit
allowed
for
geothermal
heat
pumps
provided
in
section
25D(a)(5)
of
the
Internal
Revenue
Code
for
residential
property
located
in
Iowa.
2.
Any
credit
in
excess
of
the
tax
liability
is
not
refundable
but
the
excess
for
the
tax
year
may
be
credited
to
the
tax
liability
for
the
following
ten
years
or
until
depleted,
whichever
is
earlier.
3.
The
department
shall
accept
and
approve
applications
on
a
first-come,
first-served
basis
until
the
maximum
amount
House
File
779,
p.
23
of
tax
credits
that
may
be
claimed
pursuant
to
subsection
4
is
reached.
If
for
a
tax
year
the
aggregate
amount
of
tax
credits
applied
for
exceeds
the
amount
specified
in
subsection
4,
the
department
shall
establish
a
wait
list
for
tax
credits.
Valid
applications
filed
by
the
taxpayer
by
May
1
following
the
year
of
the
installation
but
not
approved
by
the
department
shall
be
placed
on
a
wait
list
in
the
order
the
applications
were
received
and
those
applicants
shall
be
given
priority
for
having
their
applications
approved
in
succeeding
years.
Placement
on
a
wait
list
pursuant
to
this
subsection
shall
not
constitute
a
promise
binding
the
state.
The
availability
of
a
tax
credit
and
approval
of
a
tax
credit
application
pursuant
to
this
section
in
a
future
year
is
contingent
upon
the
availability
of
tax
credits
in
that
particular
year.
4.
a.
The
cumulative
value
of
tax
credits
claimed
annually
by
applicants
pursuant
to
this
section
shall
not
exceed
one
million
dollars.
b.
If
an
amount
of
tax
credits
available
for
a
tax
year
pursuant
to
paragraph
“a”
goes
unclaimed,
the
amount
of
the
unclaimed
tax
credits
shall
be
made
available
for
the
following
tax
year
in
addition
to,
and
cumulated
with,
the
amount
available
pursuant
to
paragraph
“a”
for
the
following
tax
year.
5.
The
director
of
revenue
shall
adopt
rules
to
implement
this
section.
Sec.
68.
EFFECTIVE
DATE.
This
division
of
this
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Sec.
69.
RETROACTIVE
APPLICABILITY.
This
division
of
this
Act
applies
retroactively
to
January
1,
2019,
for
tax
years
beginning
on
or
after
that
date.
DIVISION
XVI
MONEYS
AND
CREDITS
TAX
ON
STATE
CREDIT
UNIONS
Sec.
70.
Section
533.329,
subsection
2,
paragraph
a,
Code
2019,
is
amended
to
read
as
follows:
a.
The
moneys
and
credits
tax
on
state
credit
unions
is
imposed
at
a
rate
of
one-half
cent
on
each
dollar
of
the
legal
and
special
reserves
that
are
required
to
be
maintained
by
the
state
credit
union
under
section
533.303
,
and
shall
be
levied
by
the
board
of
supervisors
and
placed
upon
the
tax
list
and
House
File
779,
p.
24
collected
by
the
county
treasurer
.
However,
an
exemption
shall
be
given
to
each
state
credit
union
in
the
amount
of
forty
thousand
dollars.
______________________________
LINDA
UPMEYER
Speaker
of
the
House
______________________________
CHARLES
SCHNEIDER
President
of
the
Senate
I
hereby
certify
that
this
bill
originated
in
the
House
and
is
known
as
House
File
779,
Eighty-eighth
General
Assembly.
______________________________
CARMINE
BOAL
Chief
Clerk
of
the
House
Approved
_______________,
2019
______________________________
KIM
REYNOLDS
Governor