Bill Text: IA HSB649 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act creating a recreational-activities business tax credit available for individual and corporate income taxes, and including effective date and retroactive applicability provisions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2020-02-06 - Subcommittee Meeting: 02/11/2020 11:00AM House Lounge. [HSB649 Detail]
Download: Iowa-2019-HSB649-Introduced.html
House
Study
Bill
649
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
ECONOMIC
GROWTH
BILL
BY
CHAIRPERSON
WHEELER)
A
BILL
FOR
An
Act
creating
a
recreational-activities
business
tax
credit
1
available
for
individual
and
corporate
income
taxes,
and
2
including
effective
date
and
retroactive
applicability
3
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
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Section
1.
NEW
SECTION
.
422.12O
Recreational-activities
1
business
tax
credit.
2
1.
As
used
in
this
section:
3
a.
“New
business”
means
a
business
that
offers
recreational
4
activities
to
the
public
that
started
offering
such
activities
5
after
the
effective
date
of
this
Act,
or
is
an
existing
6
business
that
offers
recreational
activities
that
started
7
less
than
one
year
prior
to
the
effective
date
of
this
Act.
8
“New
business”
does
not
include
a
business
that
transfers
9
ownership
after
the
effective
date
of
this
Act,
changes
the
10
organizational
structure
of
the
business
within
one
year
of
11
the
effective
date
of
this
Act,
or
changes
the
organizational
12
structure
of
the
business
after
the
effective
date
of
this
Act.
13
b.
“Recreational-activities
business”
means
a
business
that
14
is
directly
and
primarily
engaged
in
recreational
activities,
15
including
bowling,
go-karts,
mini-golf,
laser
tag,
bumper
cars,
16
bumper
boats,
escape
rooms,
or
waterslides.
17
c.
“Start-up
expenses”
means
any
reasonable
expense
that
is
18
incurred
to
open
the
new
business.
19
2.
The
taxes
imposed
under
this
division,
less
the
20
credits
allowed
under
section
422.12,
shall
be
reduced
by
a
21
recreational-activities
business
tax
credit
not
to
exceed
two
22
thousand
five
hundred
dollars
of
start-up
expenses.
23
3.
A
taxpayer
may
claim
the
credit
during
either
the
first
24
or
second
year
operating
as
a
new
business.
25
4.
A
taxpayer
is
eligible
to
claim
the
credit
one
time
as
26
provided
in
subsection
2
in
the
taxpayer’s
lifetime.
27
5.
Any
credit
in
excess
of
the
tax
liability
is
not
28
refundable
but
the
excess
for
the
tax
year
may
be
credited
29
to
the
tax
liability
for
the
following
five
years
or
until
30
depleted,
whichever
is
earlier.
31
6.
An
individual
may
claim
the
tax
credit
allowed
a
32
partnership,
limited
liability
company,
S
corporation,
estate,
33
or
trust
electing
to
have
the
income
taxed
directly
to
the
34
individual.
The
amount
claimed
by
the
individual
shall
be
35
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based
upon
the
pro
rata
share
of
the
individual’s
earnings
of
1
the
partnership,
limited
liability
company,
S
corporation,
2
estate,
or
trust.
3
7.
Married
taxpayers
who
file
separate
returns
or
file
4
separately
on
a
combined
return
form
must
determine
the
tax
5
credit
under
subsection
2
based
upon
their
combined
net
income
6
and
allocate
the
total
credit
amount
to
each
spouse
in
the
7
proportion
that
each
spouse’s
respective
net
income
bears
to
8
the
total
combined
net
income.
9
8.
The
department
shall
adopt
rules
pursuant
to
chapter
17A
10
to
administer
this
section.
11
Sec.
2.
Section
422.33,
Code
2020,
is
amended
by
adding
the
12
following
new
subsection:
13
NEW
SUBSECTION
.
31.
The
taxes
imposed
under
this
division
14
shall
be
reduced
by
a
recreational-activities
business
tax
15
credit
allowed
in
section
422.12O.
16
Sec.
3.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
17
importance,
takes
effect
upon
enactment.
18
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
19
retroactively
to
January
1,
2020,
for
tax
years
beginning
on
20
or
after
that
date.
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
creates
a
recreational-activities
business
tax
25
credit
available
for
individual
and
corporate
income
taxes.
26
The
credit
is
available
to
a
taxpayer
that
operates
a
27
business
that
offers
recreational
activities
that
started
28
after
the
effective
date
of
the
bill,
or
is
an
existing
29
business
that
offers
recreational
business
activities
that
30
started
less
than
one
year
prior
to
the
effective
date
of
the
31
bill.
“Recreational-activities
business”
is
defined
to
mean
a
32
business
that
is
directly
and
primarily
engaged
in
recreational
33
activities,
including
bowling,
go-karts,
mini-golf,
laser
tag,
34
bumper
cars,
bumper
boats,
escape
rooms,
or
waterslides.
35
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The
amount
of
the
credit
is
not
to
exceed
$2,500
of
start-up
1
expenses
against
the
individual
or
corporate
income
tax.
2
A
taxpayer
is
eligible
to
claim
the
credit
one
time
as
3
provided
in
the
bill
in
the
taxpayer’s
lifetime.
4
Any
credit
provided
in
the
bill
in
excess
of
the
tax
5
liability
is
not
refundable
but
the
excess
for
the
tax
year
may
6
be
credited
to
the
tax
liability
for
the
following
five
years
7
until
depleted,
whichever
is
earlier.
8
The
bill
takes
effect
upon
enactment
and
applies
9
retroactively
to
tax
years
beginning
on
or
after
January
1,
10
2020.
11
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