Bill Text: IA HSB650 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A study bill for creating individual income tax credits for military service during certain military conflicts in Lebanon, Grenada, and Panama, and for service during certain military conflicts in the Persian Gulf, providing for penalties, and including retroactive applicability provisions.
Spectrum: Unknown
Status: (N/A - Dead) 2014-02-17 - In Veterans Affairs [HSB650 Detail]
Download: Iowa-2013-HSB650-Introduced.html
House
Study
Bill
650
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
VETERANS
AFFAIRS
BILL
BY
CHAIRPERSON
ALONS)
A
BILL
FOR
An
Act
creating
individual
income
tax
credits
for
military
1
service
during
certain
military
conflicts
in
Lebanon,
2
Grenada,
and
Panama,
and
for
service
during
certain
military
3
conflicts
in
the
Persian
Gulf,
providing
for
penalties,
and
4
including
retroactive
applicability
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
TLSB
6093YC
(3)
85
mm/sc
H.F.
_____
Section
1.
Section
422.7,
Code
2014,
is
amended
by
adding
1
the
following
new
subsections:
2
NEW
SUBSECTION
.
57.
a.
Subtract
the
Lebanon,
Grenada,
and
3
Panama
veteran
tax
credit
provided
under
section
422.10A
to
the
4
extent
that
the
credit
increased
federal
adjusted
gross
income.
5
b.
This
subsection
is
repealed
January
1,
2018.
6
NEW
SUBSECTION
.
58.
a.
Subtract
the
Persian
Gulf
veteran
7
tax
credit
provided
under
section
422.10B
to
the
extent
that
8
the
credit
increased
federal
adjusted
gross
income.
9
b.
This
subsection
is
repealed
January
1,
2018.
10
Sec.
2.
NEW
SECTION
.
422.10A
Lebanon,
Grenada,
and
Panama
11
veteran
tax
credit.
12
1.
The
taxes
imposed
under
this
division,
less
the
credits
13
allowed
under
section
422.12,
shall
be
reduced
by
a
Lebanon,
14
Grenada,
and
Panama
veteran
tax
credit
equal
to
the
following
15
amount:
16
a.
For
a
taxpayer
who
served
on
active
duty
for
not
less
17
than
one
hundred
twenty
days
in
the
armed
forces
of
the
United
18
States
at
any
time
between
August
24,
1982,
and
July
31,
1984,
19
both
dates
inclusive,
or
between
December
20,
1989,
and
January
20
31,
1990,
both
dates
inclusive,
and
who
was
inducted
into
21
federal
active
duty
from
the
state
of
Iowa
and
was
honorably
22
discharged
or
separated
from
federal
active
duty,
or
is
still
23
on
active
duty
in
an
honorable
status,
or
has
been
retired,
24
or
has
been
furloughed
to
a
reserve,
or
has
been
placed
on
25
inactive
status,
an
amount
equal
to
eighteen
dollars
for
26
each
month
that
the
taxpayer
was
on
federal
active
duty
in
27
a
conflict
service
area
within
the
dates
specified
in
this
28
paragraph,
not
to
exceed
five
hundred
dollars.
29
b.
For
a
taxpayer
who
otherwise
qualifies
for
the
credit
30
under
paragraph
“a”
,
except
that
the
person
was
not
present
31
in
a
conflict
service
area
during
the
period
between
August
32
24,
1982,
and
July
31,
1984,
both
dates
inclusive,
or
between
33
December
20,
1989,
and
January
31,
1990,
both
dates
inclusive,
34
an
amount
equal
to
thirteen
dollars
for
each
month
that
the
35
-1-
LSB
6093YC
(3)
85
mm/sc
1/
8
H.F.
_____
taxpayer
was
on
federal
active
duty
within
the
dates
specified
1
in
paragraph
“a”
,
not
to
exceed
three
hundred
dollars.
2
c.
The
Iowa
department
of
veterans
affairs
shall
adopt
3
rules
pursuant
to
chapter
17A
providing
for
the
definition
of
a
4
conflict
service
area.
5
2.
In
order
to
qualify
for
the
credit
in
subsection
1,
all
6
of
the
following
requirements
must
be
satisfied:
7
a.
The
taxpayer
has
not
received
a
tax
credit,
bonus,
or
8
compensation
similar
to
that
provided
in
this
section
from
this
9
state
or
another
state.
10
b.
The
taxpayer
was
on
active
duty
service
after
August
11
24,
1982,
and
the
person
did
not
refuse
on
conscientious,
12
political,
religious,
or
other
grounds,
to
be
subject
to
13
military
discipline.
14
c.
The
taxpayer
files
an
application
for
tax
credit
under
15
this
section
with
the
department
of
veterans
affairs
in
a
16
manner
determined
by
the
department
by
July
1,
2015.
The
17
department
of
veterans
affairs
shall
certify
to
the
department
18
of
revenue
the
identity
of
each
taxpayer
eligible
for
the
19
credit
under
this
section
and
the
amount
of
tax
credit
for
20
which
the
taxpayer
is
eligible.
21
3.
If
a
taxpayer
dies
before
claiming
the
credit
in
22
subsection
1,
the
surviving
unremarried
widow
or
widower,
23
child
or
children,
mother,
father,
or
person
standing
in
loco
24
parentis,
in
the
order
named
and
none
other,
of
any
deceased
25
taxpayer
shall
be
eligible
for
the
tax
credit
in
subsection
1
26
that
the
deceased
taxpayer
would
be
entitled
to
pursuant
to
27
this
section,
if
living.
If
any
taxpayer
has
died
or
shall
28
die,
or
is
disabled,
from
service-connected
causes
incurred
29
during
the
period
and
in
the
area
from
which
the
taxpayer
is
30
entitled
to
the
credit
pursuant
to
this
section,
the
taxpayer
31
or
the
first
survivor
as
designated
by
this
subsection,
and
32
in
the
order
named,
shall
be
eligible
for
a
tax
credit
equal
33
to
five
hundred
dollars
or
three
hundred
dollars,
whichever
34
maximum
amount
would
have
applied
pursuant
to
subsection
1,
35
-2-
LSB
6093YC
(3)
85
mm/sc
2/
8
H.F.
_____
paragraph
“a”
or
“b”
,
regardless
of
the
length
of
service.
1
4.
A
taxpayer
who
served
for
at
least
sixteen
days
in
a
2
month
shall
be
considered
to
have
served
for
the
entire
month.
3
5.
The
credit
provided
in
this
section
shall
be
allowed
only
4
once
per
taxpayer.
The
credit
shall
be
claimed
by
the
taxpayer
5
for
the
tax
year
in
which
the
application
is
successfully
made
6
to
the
department
of
veterans
affairs
under
subsection
2,
7
paragraph
“c”
.
Any
credit
in
excess
of
the
tax
liability
is
8
refundable.
Taxpayers
affected
by
the
allocation
provisions
9
of
section
422.8
shall
be
permitted
a
deduction
for
the
credit
10
only
in
the
amount
fairly
and
equitably
allocable
to
Iowa
under
11
rules
prescribed
by
the
director
of
revenue.
12
6.
A
taxpayer
who
knowingly
makes
a
false
statement
relating
13
to
a
material
fact
in
supporting
an
application
under
this
14
section
is
guilty
of
a
serious
misdemeanor.
A
person
convicted
15
pursuant
to
this
section
shall
forfeit
all
tax
credit
to
which
16
the
taxpayer
may
have
been
entitled
under
this
section.
17
7.
The
executive
director
of
the
department
of
veterans
18
affairs,
in
cooperation
with
the
director
of
the
department
19
of
revenue,
shall
provide
for
the
administration
of
the
20
credit
authorized
in
this
section.
The
department
of
veterans
21
affairs
and
the
department
of
revenue
shall
each
adopt
rules,
22
pursuant
to
chapter
17A,
as
necessary
to
administer
this
23
section,
including
but
not
limited
to
application
procedures,
24
investigation,
approval
or
disapproval
of
claims,
and
claiming
25
of
credits.
26
8.
This
section
is
repealed
January
1,
2016.
27
Sec.
3.
NEW
SECTION
.
422.10B
Persian
Gulf
veteran
tax
28
credit.
29
1.
The
taxes
imposed
under
this
division,
less
the
credits
30
allowed
under
section
422.12,
shall
be
reduced
by
a
Persian
31
Gulf
veteran
tax
credit
equal
to
the
following
amount:
32
a.
For
a
taxpayer
who
served
on
active
duty
for
not
less
33
than
one
hundred
twenty
days
in
the
armed
forces
of
the
United
34
States
at
any
time
between
January
31,
1990,
and
February
28,
35
-3-
LSB
6093YC
(3)
85
mm/sc
3/
8
H.F.
_____
1991,
both
dates
inclusive,
and
who
was
inducted
into
federal
1
active
duty
from
the
state
of
Iowa
and
was
honorably
discharged
2
or
separated
from
federal
active
duty,
or
is
still
on
active
3
duty
in
an
honorable
status,
or
has
been
retired,
or
has
been
4
furloughed
to
a
reserve,
or
has
been
placed
on
inactive
status,
5
an
amount
equal
to
eighteen
dollars
for
each
month
that
the
6
taxpayer
was
on
federal
active
duty
in
the
conflict
service
7
area
within
the
dates
specified
in
this
paragraph,
not
to
8
exceed
five
hundred
dollars.
9
b.
For
a
taxpayer
who
otherwise
qualifies
for
the
credit
10
under
paragraph
“a”
,
except
that
the
taxpayer
was
not
present
in
11
a
conflict
service
area
during
the
period
between
January
31,
12
1990,
and
February
28,
1991,
both
dates
inclusive,
an
amount
13
equal
to
thirteen
dollars
for
each
month
that
the
taxpayer
was
14
on
federal
active
duty
within
the
dates
specified
in
paragraph
15
“a”
,
not
to
exceed
three
hundred
dollars.
16
c.
The
Iowa
department
of
veterans
affairs
shall
adopt
17
rules
pursuant
to
chapter
17A
providing
for
the
definition
of
a
18
conflict
service
area.
19
2.
In
order
to
qualify
for
the
credit
in
subsection
1,
all
20
of
the
following
requirements
must
be
satisfied:
21
a.
The
taxpayer
has
not
received
a
tax
credit,
bonus,
or
22
compensation
similar
to
that
provided
in
this
section
from
this
23
state
or
another
state.
24
b.
The
taxpayer
was
on
federal
active
duty
after
January
25
31,
1990,
and
the
taxpayer
did
not
refuse
on
conscientious,
26
political,
religious,
or
other
grounds,
to
be
subject
to
27
military
discipline.
28
c.
The
taxpayer
files
an
application
for
tax
credit
under
29
this
section
with
the
department
of
veterans
affairs
in
a
30
manner
determined
by
the
department
by
July
1,
2015.
The
31
department
of
veterans
affairs
shall
certify
to
the
department
32
of
revenue
the
identity
of
each
taxpayer
eligible
for
the
33
credit
under
this
section
and
the
amount
of
tax
credit
for
34
which
the
taxpayer
is
eligible.
35
-4-
LSB
6093YC
(3)
85
mm/sc
4/
8
H.F.
_____
3.
If
a
taxpayer
dies
before
claiming
the
credit
in
1
subsection
1,
the
surviving
unremarried
widow
or
widower,
2
child
or
children,
mother,
father,
or
person
standing
in
loco
3
parentis,
in
the
order
named
and
none
other,
of
any
deceased
4
taxpayer
shall
be
eligible
for
the
tax
credit
in
subsection
1
5
that
the
deceased
taxpayer
would
be
entitled
to
pursuant
to
6
this
section,
if
living.
If
any
taxpayer
has
died
or
shall
7
die,
or
is
disabled,
from
service-connected
causes
incurred
8
during
the
period
and
in
the
area
from
which
the
taxpayer
is
9
entitled
to
the
credit
pursuant
to
this
section,
the
taxpayer
10
or
the
first
survivor
as
designated
by
this
subsection,
and
11
in
the
order
named,
shall
be
eligible
for
a
tax
credit
equal
12
to
five
hundred
dollars
or
three
hundred
dollars,
whichever
13
maximum
amount
would
have
applied
pursuant
to
subsection
1,
14
paragraph
“a”
or
“b”
,
regardless
of
the
length
of
service.
15
4.
A
taxpayer
who
served
for
at
least
sixteen
days
in
a
16
month
shall
be
considered
to
have
served
for
the
entire
month.
17
5.
The
credit
provided
in
this
section
shall
be
allowed
only
18
once
per
taxpayer.
The
credit
shall
be
claimed
by
the
taxpayer
19
for
the
tax
year
in
which
the
application
is
successfully
made
20
to
the
department
of
veterans
affairs
under
subsection
2,
21
paragraph
“c”
.
Any
credit
in
excess
of
the
tax
liability
is
22
refundable.
Taxpayers
affected
by
the
allocation
provisions
23
of
section
422.8
shall
be
permitted
a
deduction
for
the
credit
24
only
in
the
amount
fairly
and
equitably
allocable
to
Iowa
under
25
rules
prescribed
by
the
director
of
revenue.
26
6.
A
taxpayer
who
knowingly
makes
a
false
statement
relating
27
to
a
material
fact
in
supporting
an
application
under
this
28
section
is
guilty
of
a
serious
misdemeanor.
A
person
convicted
29
pursuant
to
this
section
shall
forfeit
all
tax
credit
to
which
30
the
taxpayer
may
have
been
entitled
under
this
section.
31
7.
The
executive
director
of
the
department
of
veterans
32
affairs,
in
cooperation
with
the
director
of
the
department
33
of
revenue,
shall
provide
for
the
administration
of
the
34
credit
authorized
in
this
section.
The
department
of
veterans
35
-5-
LSB
6093YC
(3)
85
mm/sc
5/
8
H.F.
_____
affairs
and
the
department
of
revenue
shall
each
adopt
rules,
1
pursuant
to
chapter
17A,
as
necessary
to
administer
this
2
section,
including
but
not
limited
to
application
procedures,
3
investigation,
approval
or
disapproval
of
claims,
and
claiming
4
of
credits.
5
8.
This
section
is
repealed
January
1,
2016.
6
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
7
retroactively
to
January
1,
2014,
for
tax
years
beginning
on
8
or
after
that
date.
9
EXPLANATION
10
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
11
the
explanation’s
substance
by
the
members
of
the
general
assembly.
12
This
bill
provides
for
the
creation
of
two
one-time
13
individual
income
tax
credits
for
veterans
of
the
United
States
14
military
who
served
during
identified
periods
of
conflict.
15
The
first
credit
is
available
to
members
of
the
United
States
16
armed
forces
who
served
in
active
duty
during
the
military
17
conflicts
in
Lebanon,
Grenada,
and
Panama
who
meet
certain
18
qualifications
of
service.
The
second
credit
is
available
to
19
members
of
the
United
States
armed
forces
who
served
in
active
20
duty
during
the
military
conflicts
in
the
Persian
Gulf
who
meet
21
certain
qualifications
of
service.
22
The
bill
provides
dates
for
the
periods
of
these
conflicts.
23
The
bill
provides
that
veterans
who
served
in
conflict
service
24
areas
during
these
periods
will
receive
a
larger
tax
credit
for
25
their
service
than
veterans
who
did
not
serve
in
a
conflict
26
service
area
during
these
periods.
The
bill
provides
for
the
27
computation
of
such
payments
based
upon
months
of
service
28
either
in
or
outside
of
a
conflict
service
area.
A
person
who
29
served
in
a
conflict
service
area
is
eligible
for
a
maximum
30
credit
of
$500
and
a
person
who
did
not
serve
in
a
conflict
31
service
area
is
eligible
for
a
maximum
credit
of
$300.
32
The
bill
requires
that
a
veteran
must
meet
additional
33
requirements
to
qualify
for
the
credit.
The
person
must
not
34
have
received
a
similar
tax
credit
or
bonus
from
this
state
35
-6-
LSB
6093YC
(3)
85
mm/sc
6/
8
H.F.
_____
or
any
other
state.
The
person
must
not
have
refused
to
be
1
subject
to
military
discipline
on
certain
grounds.
The
bill
2
also
requires
that
the
person
file
an
application
with
the
3
department
of
veterans
affairs
(department)
by
July
1,
2015,
in
4
order
to
qualify
for
the
credit.
The
department
is
required
5
to
certify
to
the
department
of
revenue
the
identify
of
each
6
person
who
qualifies
for
the
credits
and
the
amount
of
tax
7
credit
for
which
the
taxpayer
is
eligible.
8
Certain
other
persons
who
survive
the
veteran
are
9
eligible
for
the
tax
credit
for
which
the
deceased
person
10
would
have
been
eligible.
The
bill
also
provides
that
upon
11
service-related
death
or
disability
relating
to
service
during
12
the
applicable
time
periods
and
in
the
applicable
area,
the
13
veteran
or
first
survivor,
as
identified
in
the
bill,
will
be
14
eligible
for
the
highest
maximum
tax
credit
allowable
to
the
15
deceased.
16
The
bill
provides
that
knowingly
making
a
false
statement
of
17
material
fact
supporting
an
application
to
receive
one
of
the
18
tax
credits
is
a
serious
misdemeanor.
A
serious
misdemeanor
19
is
punishable
by
confinement
for
no
more
than
one
year
and
a
20
fine
of
at
least
$315
but
not
more
than
$1,875.
The
bill
also
21
provides
that
a
conviction
on
such
a
charge
would
result
in
22
forfeiture
of
any
right
to
claim
one
of
the
credits.
23
Each
credit
provided
in
the
bill
shall
be
allowed
only
once
24
per
taxpayer.
The
taxpayer
is
required
to
claim
the
credit
25
for
the
tax
year
in
which
the
tax
credit
application
was
made.
26
Any
credit
in
excess
of
the
tax
liability
is
refundable.
27
Nonresident
and
part-year
residents
are
allowed
a
tax
credit
28
only
in
the
amount
fairly
and
equitably
allocable
to
Iowa
under
29
rules
prescribed
by
the
director
of
revenue.
30
The
tax
credits
are
exempt
from
the
individual
income
tax
to
31
the
extent
that
they
increase
federal
adjusted
gross
income.
32
The
director
of
the
department
of
veterans
affairs,
in
33
cooperation
with
the
director
of
the
department
of
revenue,
is
34
to
administer
the
tax
credits.
35
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