Bill Text: IA SF2105 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act excluding from the computation of net income for purposes of the individual income tax the unreimbursed cost of prescribed drugs or insulin of certain taxpayers at least sixty-five years of age, and including applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2022-01-27 - Subcommittee: Goodwin, Dawson, and Quirmbach. S.J. 159. [SF2105 Detail]
Download: Iowa-2021-SF2105-Introduced.html
Senate
File
2105
-
Introduced
SENATE
FILE
2105
BY
CARLIN
A
BILL
FOR
An
Act
excluding
from
the
computation
of
net
income
for
1
purposes
of
the
individual
income
tax
the
unreimbursed
cost
2
of
prescribed
drugs
or
insulin
of
certain
taxpayers
at
3
least
sixty-five
years
of
age,
and
including
applicability
4
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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2105
Section
1.
Section
422.7,
Code
2022,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
29A.
Subtract
the
unreimbursed
cost
of
3
prescribed
drugs
or
insulin
of
a
taxpayer
who
is
at
least
4
sixty-five
years
old
on
December
31.
If
a
deduction
is
taken
5
under
this
subsection,
the
unreimbursed
cost
of
the
drugs
6
or
insulin
shall
not
be
considered
medical
care
expenses
7
under
section
213
of
the
Internal
Revenue
Code
for
state
tax
8
purposes.
9
Sec.
2.
APPLICABILITY.
This
Act
applies
January
1,
2023,
to
10
prescribed
drugs
or
insulin
purchased
after
that
date.
11
Sec.
3.
APPLICABILITY.
This
Act
applies
to
tax
years
12
beginning
on
or
after
January
1,
2023.
13
EXPLANATION
14
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
15
the
explanation’s
substance
by
the
members
of
the
general
assembly.
16
This
bill
excludes
from
the
computation
of
net
income
for
17
purposes
of
the
individual
income
tax
the
unreimbursed
cost
of
18
prescribed
drugs
or
insulin
of
a
taxpayer
who
is
at
least
65
19
years
of
age.
20
Under
current
law,
any
taxpayer
may
deduct
from
net
income
21
unreimbursed
costs
of
prescribed
drugs
or
insulin
as
an
22
itemized
deduction
for
state
tax
purposes,
to
the
extent
the
23
taxpayer’s
total
medical
and
dental
expenses
exceed
10
percent
24
of
federal
adjusted
gross
income.
25
Under
the
bill,
a
taxpayer
who
is
at
least
65
years
of
age
26
on
December
31
of
any
tax
year
beginning
on
or
after
January
1,
27
2023,
may
exclude
from
the
computation
of
net
income
the
cost
28
of
unreimbursed
prescription
drugs
or
insulin,
if
the
taxpayer
29
excludes
any
cost
of
unreimbursed
prescription
drugs
or
insulin
30
from
the
medical
care
expense
deduction
under
section
213
of
31
the
Internal
Revenue
Code
for
state
tax
purposes.
32
The
bill
applies
to
tax
years
beginning
on
or
after
January
33
1,
2023,
for
prescribed
drugs
or
insulin
purchased
on
or
after
34
that
date.
35
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