Bill Text: IA HSB709 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act providing deductions from the individual and corporate income taxes for expenses incurred by medical cannabidiol manufacturers, and including effective date and retroactive applicability provisions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2020-03-12 - Subcommittee recommends passage. [HSB709 Detail]
Download: Iowa-2019-HSB709-Introduced.html
House
Study
Bill
709
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
HEIN)
A
BILL
FOR
An
Act
providing
deductions
from
the
individual
and
corporate
1
income
taxes
for
expenses
incurred
by
medical
cannabidiol
2
manufacturers,
and
including
effective
date
and
retroactive
3
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
6354YC
(2)
88
jm/jh
H.F.
_____
Section
1.
Section
422.7,
Code
2020,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
59.
Subtract,
to
the
extent
included,
3
the
amount
of
business
expense
for
a
medical
cannabidiol
4
manufacturer
licensed
pursuant
to
chapter
124E
without
regard
5
to
section
280E
of
the
Internal
Revenue
Code.
6
Sec.
2.
Section
422.35,
Code
2020,
is
amended
by
adding
the
7
following
new
subsection:
8
NEW
SUBSECTION
.
26.
Subtract,
to
the
extent
included,
9
the
amount
of
business
expense
for
a
medical
cannabidiol
10
manufacturer
licensed
pursuant
to
chapter
124E
without
regard
11
to
section
280E
of
the
Internal
Revenue
Code.
12
Sec.
3.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
13
importance,
takes
effect
upon
enactment.
14
Sec.
4.
RETROACTIVE
APPLICABILITY.
This
Act
applies
15
retroactively
to
January
1,
2020,
for
tax
years
beginning
on
16
or
after
that
date.
17
EXPLANATION
18
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
19
the
explanation’s
substance
by
the
members
of
the
general
assembly.
20
This
bill
provides
deductions
from
the
individual
and
21
corporate
income
taxes
for
business
expenses
incurred
by
22
medical
cannabidiol
manufacturers.
23
Under
federal
law,
a
medical
cannabidiol
manufacturer
is
24
prohibited
from
taking
business
expense
deductions
by
section
25
280E
of
the
Internal
Revenue
Code.
Currently,
Iowa
computes
26
individual
net
income
and
corporate
taxable
income
based
upon
27
federal
income
calculations,
and
therefore
Iowa
currently
28
prohibits
a
medical
cannabidiol
manufacturer
from
taking
29
business
expense
deductions
as
well
because
the
deductions
are
30
not
allowed
at
the
federal
level.
31
The
bill
allows
a
medical
cannabidiol
manufacturer
licensed
32
pursuant
to
Code
chapter
124E
to
deduct
business
expenses
for
33
purposes
of
the
Iowa
individual
income
tax
or
corporate
income
34
tax.
35
-1-
LSB
6354YC
(2)
88
jm/jh
1/
2