Bill Text: IA SF126 | 2015-2016 | 86th General Assembly | Enrolled

Iowa Senate Bill 126 (Prior Session Legislation)

Bill Title: A bill for an act updating the Code references to the Internal Revenue Code and decoupling from certain federal bonus depreciation provisions, and including effective date and retroactive applicability provisions. (Formerly SSB 1059.) Effective 2-17-15.

Sponsorship: Committee Bill

Status: (Passed) 2015-02-17 - Signed by Governor. S.J. 316. [SF126 Detail]

Download: Iowa-2015-SF126-Enrolled.html

Senate File 126 - Enrolled




                              SENATE FILE       
                              BY  COMMITTEE ON WAYS AND
                                  MEANS

                              (SUCCESSOR TO SSB
                                  1059)

                              (COMPANION TO 1308HV)
 \5
                                   A BILL FOR
 \1
                                        Senate File 126

                             AN ACT
 UPDATING THE CODE REFERENCES TO THE INTERNAL REVENUE CODE
    AND DECOUPLING FROM CERTAIN FEDERAL BONUS DEPRECIATION
    PROVISIONS, AND INCLUDING EFFECTIVE DATE AND RETROACTIVE
    APPLICABILITY PROVISIONS.

 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
                           DIVISION I
                INTERNAL REVENUE CODE REFERENCES
    Section 1.  Section 15.335, subsection 7, paragraph b, Code
 2015, is amended to read as follows:
    b.  For purposes of this section, "Internal Revenue Code"
 means the Internal Revenue Code in effect on January 1, 2014
  2015.
    Sec. 2.  Section 422.3, subsection 5, Code 2015, is amended
 to read as follows:
    5.  "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
 the Internal Revenue Code of 1986 as amended to and including
 January 1, 2014 2015.
    Sec. 3.  Section 422.9, subsection 2, paragraph i, Code 2015,
 is amended to read as follows:
    i.  The deduction for state sales and use taxes is allowable
 only if the taxpayer elected to deduct the state sales and use
 taxes in lieu of state income taxes under section 164 of the
 Internal Revenue Code. A deduction for state sales and use
 taxes is not allowed if the taxpayer has taken the deduction
 for state income taxes or claimed the standard deduction under
 section 63 of the Internal Revenue Code. This paragraph
 applies to taxable years beginning after December 31, 2003, and
 before January 1, 2008, and to taxable years beginning after
 December 31, 2009, and before January 1, 2014 2015.
    Sec. 4.  Section 422.10, subsection 3, paragraph b, Code
 2015, is amended to read as follows:
    b.  For purposes of this section, "Internal Revenue Code"
 means the Internal Revenue Code in effect on January 1, 2014
  2015.
    Sec. 5.  Section 422.32, subsection 1, paragraph h, Code
 2015, is amended to read as follows:
    h.  "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
 the Internal Revenue Code of 1986 as amended to and including
 January 1, 2014 2015.
    Sec. 6.  Section 422.33, subsection 5, paragraph e,
 subparagraph (2), Code 2015, is amended to read as follows:
    (2)  For purposes of this subsection, "Internal Revenue Code"
 means the Internal Revenue Code in effect on January 1, 2014
  2015.
    Sec. 7.  EFFECTIVE UPON ENACTMENT.  This division of this
 Act, being deemed of immediate importance, takes effect upon
 enactment.
    Sec. 8.  RETROACTIVE APPLICABILITY.  This division of this
 Act applies retroactively to January 1, 2014, for tax years
 beginning on or after that date.
                           DIVISION II
                       BONUS DEPRECIATION
    Sec. 9.  Section 422.7, subsection 39A, unnumbered paragraph
 1, Code 2015, is amended to read as follows:
    The additional first=year depreciation allowance authorized
 in section 168(k) of the Internal Revenue Code, as enacted by
 Pub. L. No. 110=185, {103, Pub. L. No. 111=5, {1201, Pub. L.
 No. 111=240, {2022, Pub. L. No. 111=312, {401, and Pub. L. No.
 112=240, {331, and Pub. L. No. 113=295, {125, does not apply in
 computing net income for state tax purposes. If the taxpayer
 has taken the additional first=year depreciation allowance
 for purposes of computing federal adjusted gross income, then
 the taxpayer shall make the following adjustments to federal
 adjusted gross income when computing net income for state tax
 purposes:
    Sec. 10.  Section 422.35, subsection 19A, unnumbered
 paragraph 1, Code 2015, is amended to read as follows:
    The additional first=year depreciation allowance authorized
 in section 168(k) of the Internal Revenue Code, as enacted by
 Pub. L. No. 110=185, {103, Pub. L. No. 111=5, {1201, Pub. L.
 No. 111=240, {2022, Pub. L. No. 111=312, {401, and Pub. L. No.
 112=240, {331, and Pub. L. No. 113=295, {125, does not apply in
 computing net income for state tax purposes. If the taxpayer
 has taken the additional first=year depreciation allowance for
 purposes of computing federal taxable income, then the taxpayer
 shall make the following adjustments to federal taxable income
 when computing net income for state tax purposes:
    Sec. 11.  EFFECTIVE UPON ENACTMENT.  This division of this
 Act, being deemed of immediate importance, takes effect upon
 enactment.
    Sec. 12.  RETROACTIVE APPLICABILITY.  This division of this
 Act applies retroactively to January 1, 2014, for tax years
 ending on or after that date.


                                                             
                               PAM JOCHUM
                               President of the Senate


                                                             
                               KRAIG PAULSEN
                               Speaker of the House
    I hereby certify that this bill originated in the Senate and
 is known as Senate File 126, Eighty=sixth General Assembly.


                                                             
                               MICHAEL E. MARSHALL
                               Secretary of the Senate
 Approved                , 2015


                                                             
                               TERRY E. BRANSTAD
                               Governor

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