Bill Text: IA SF2108 | 2021-2022 | 89th General Assembly | Introduced

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Bill Title: A bill for an act providing a nursing home visitation shelter tax credit available against the individual and corporate income taxes, and including effective date and applicability provisions.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2022-01-27 - Subcommittee: Goodwin, Dawson, and Dotzler. S.J. 159. [SF2108 Detail]

Download: Iowa-2021-SF2108-Introduced.html

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Senate File 2108 - Introduced
SENATE FILE 2108
BY CARLIN
A BILL FOR
An Act providing a nursing home visitation shelter tax credit
available against the individual and corporate income taxes,
and including effective date and applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. NEW SECTION . 231.67 Nursing home visitation
shelter tax credit.
1. As used in this section:
a. “Meeting area” means an area with proper ventilation
that may be easily sanitized while also allowing for ease of
communication with social distancing.
b. “Nursing home” means the same as defined in section
155.1.
c. “Nursing home visitation shelter” means a newly
constructed or renovated meeting area located within a nursing
home or on the grounds of the nursing home designed for nursing
home residents to meet with friends and family members in a
low-risk setting to reduce the spread of disease.
2. a. The taxes imposed against the income tax imposed
under chapter 422, subchapter II or III, shall be reduced by
a nursing home visitation shelter tax credit equal to fifty
percent of the cost of constructing a nursing home visitation
shelter, provided that the amount of the credit shall not
exceed one hundred thousand dollars per application.
b. An individual may claim a tax credit under this section
of a partnership, limited liability company, S corporation,
estate, or trust electing to have income taxed directly to
the individual. The amount claimed by the individual shall
be based upon the pro rata share of the individual’s earnings
from the partnership, limited liability company, S corporation,
estate, or trust.
3. The department, in consultation with the department of
revenue, shall develop a system for the application, review,
and authorization of nursing home visitation shelter tax
credits awarded pursuant to this section and shall control the
issuance of all tax credit certificates to taxpayers pursuant
to this section.
4. Applications shall be accepted by the department during
the application period established by the department.
5. Upon review of an application, the department may approve
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S.F. 2108
the tax credit, and issue a tax credit certificate stating the
amount of the tax credit the department determines the taxpayer
is eligible to claim for each year of the credit.
6. In any calendar year, the aggregate amount of all tax
credits allocated by the department shall not exceed five
million dollars.
7. Any credit in excess of tax liability is not refundable
but the excess for the tax year may be credited to the tax
liability for the following five years or until depleted,
whichever is earlier.
8. a. To claim a tax credit under this section, a taxpayer
shall include one or more tax credit certificates issued by the
department with the taxpayer’s return.
b. The tax credit certificate shall contain the taxpayer’s
name, address, tax identification number, the amount of the
credit, and any other information required by the department
of revenue.
c. The tax credit certificate is not transferable.
Sec. 2. NEW SECTION . 422.10C Nursing home visitation
shelter tax credit.
The taxes imposed under this subchapter, less the credits
allowed under section 422.12, shall be reduced by a nursing
home visitation shelter tax credit allowed under section
231.67.
Sec. 3. Section 422.33, Code 2022, is amended by adding the
following new subsection:
NEW SUBSECTION . 17. The taxes imposed under this subchapter
shall be reduced by a nursing home visitation shelter tax
credit allowed under section 231.67.
Sec. 4. EFFECTIVE DATE. This Act, being deemed of immediate
importance, takes effect upon enactment.
Sec. 5. RETROACTIVE APPLICABILITY. This Act applies
retroactively to January 1, 2022, for tax years beginning on
or after that date.
EXPLANATION
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S.F. 2108
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill creates a nursing home visitation shelter tax
credit available against the individual and corporate income
taxes.
The amount of the credit equals 50 percent of the cost of
constructing a nursing home visitation shelter, not to exceed
$100,000 per application.
The bill defines “nursing home visitation shelter” to mean a
newly constructed or renovated meeting area located within a
nursing home or on the grounds of the nursing home designed for
nursing home residents to meet with friends and family members
in a low-risk setting to reduce the spread of disease.
The bill defines “meeting area” to mean an area with proper
ventilation that may be easily sanitized while also allowing
for ease of communication with social distancing.
The bill requires the department of aging (department),
in consultation with the department of revenue, to develop
a system for the application, review, and authorization of
nursing home visitation shelter tax credits and to control the
issuance of tax credit certificates to taxpayers. To claim
a tax credit under the bill, a taxpayer must include one or
more tax credit certificates issued by the department with the
taxpayer’s return.
The aggregate amount of the credit available in a calendar
year shall not exceed $5 million.
The tax credit is not refundable but any credit in excess
of tax liability may be credited to the tax liability for the
following five years or until depleted, whichever is earlier.
The bill takes effect upon enactment and applies
retroactively to tax years beginning on or after January 1,
2022.
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