Bill Text: IA SF2157 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to medical cannabidiol by providing deductions from the individual and corporate income taxes for expenses incurred by medical cannabidiol manufacturers and dispensaries, and exempting the sale of medical cannabidiol products from the sales and use tax, and including retroactive applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2022-02-02 - Subcommittee: Dawson, Bolkcom, and Goodwin. S.J. 193. [SF2157 Detail]
Download: Iowa-2021-SF2157-Introduced.html
Senate
File
2157
-
Introduced
SENATE
FILE
2157
BY
BROWN
A
BILL
FOR
An
Act
relating
to
medical
cannabidiol
by
providing
deductions
1
from
the
individual
and
corporate
income
taxes
for
2
expenses
incurred
by
medical
cannabidiol
manufacturers
and
3
dispensaries,
and
exempting
the
sale
of
medical
cannabidiol
4
products
from
the
sales
and
use
tax,
and
including
5
retroactive
applicability
provisions.
6
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
7
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5971XS
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S.F.
2157
DIVISION
I
1
DEDUCTIONS
FROM
INDIVIDUAL
AND
CORPORATE
INCOME
TAXES
2
Section
1.
Section
422.7,
Code
2022,
is
amended
by
adding
3
the
following
new
subsection:
4
NEW
SUBSECTION
.
63.
Subtract,
to
the
extent
included,
5
the
amount
of
business
expense
for
a
medical
cannabidiol
6
manufacturer
or
a
medical
cannabidiol
dispensary
licensed
7
pursuant
to
chapter
124E
without
regard
to
section
280E
of
the
8
Internal
Revenue
Code.
9
Sec.
2.
Section
422.35,
Code
2022,
is
amended
by
adding
the
10
following
new
subsection:
11
NEW
SUBSECTION
.
31.
Subtract,
to
the
extent
included,
12
the
amount
of
business
expense
for
a
medical
cannabidiol
13
manufacturer
or
a
medical
cannabidiol
dispensary
licensed
14
pursuant
to
chapter
124E
without
regard
to
section
280E
of
the
15
Internal
Revenue
Code.
16
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
division
of
this
17
Act
applies
retroactively
to
January
1,
2022,
for
tax
years
18
beginning
on
or
after
that
date.
19
DIVISION
II
20
EXEMPTION
FROM
SALES
AND
USE
TAX
21
Sec.
4.
Section
423.3,
Code
2022,
is
amended
by
adding
the
22
following
new
subsection:
23
NEW
SUBSECTION
.
108.
The
sales
price
of
the
sale
of
24
a
medical
cannabidiol
product
by
a
medical
cannabidiol
25
manufacturer
or
a
medical
cannabidiol
dispensary
pursuant
to
26
chapter
124E.
27
EXPLANATION
28
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
29
the
explanation’s
substance
by
the
members
of
the
general
assembly.
30
DIVISION
I.
Under
federal
law,
a
medical
cannabidiol
31
manufacturer
and
a
medical
cannabidiol
dispensary
are
32
prohibited
from
taking
business
expense
deductions
by
section
33
280E
of
the
Internal
Revenue
Code.
Currently,
Iowa
computes
34
individual
net
income
and
corporate
taxable
income
based
upon
35
-1-
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5971XS
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89
jm/jh
1/
2
S.F.
2157
federal
income
calculations,
and
therefore
Iowa
currently
1
prohibits
a
medical
cannabidiol
manufacturer
and
a
medical
2
cannabidiol
dispensary
from
taking
business
expense
deductions
3
as
well
because
the
deductions
are
not
allowed
at
the
federal
4
level.
5
This
bill
allows
a
medical
cannabidiol
manufacturer
and
6
a
medical
cannabidiol
dispensary
licensed
pursuant
to
Code
7
chapter
124E
to
deduct
business
expenses
for
purposes
of
the
8
Iowa
individual
income
tax
or
corporate
income
tax.
9
The
division
applies
retroactively
to
tax
years
beginning
on
10
or
after
January
1,
2022.
11
DIVISION
II.
The
bill
exempts
from
the
sales
and
use
12
tax
the
sales
price
of
a
medical
cannabidiol
product
by
a
13
licensed
medical
cannabidiol
manufacturer
or
a
licensed
medical
14
cannabidiol
dispensary.
The
sales
and
use
tax
exemption
takes
15
effect
July
1,
2022.
16
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