Bill Text: IA SF220 | 2019-2020 | 88th General Assembly | Enrolled
Bill Title: A bill for an act relating to the increased expensing allowance deduction by corporations, financial institutions, and partnerships and limited liability companies taxed as corporations, and including effective date and retroactive applicability provisions. (Formerly SSB 1098.) Effective 3-15-19.
Spectrum: Committee Bill
Status: (Passed) 2019-03-15 - Signed by Governor. S.J. 655. [SF220 Detail]
Download: Iowa-2019-SF220-Enrolled.html
Senate
File
220
-
Enrolled
Senate
File
220
AN
ACT
RELATING
TO
THE
INCREASED
EXPENSING
ALLOWANCE
DEDUCTION
BY
CORPORATIONS,
FINANCIAL
INSTITUTIONS,
AND
PARTNERSHIPS
AND
LIMITED
LIABILITY
COMPANIES
TAXED
AS
CORPORATIONS,
AND
INCLUDING
EFFECTIVE
DATE
AND
RETROACTIVE
APPLICABILITY
PROVISIONS.
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
Section
1.
Section
422.35,
subsections
14
and
15,
Code
2019,
are
amended
to
read
as
follows:
14.
a.
The
Notwithstanding
any
other
provision
of
the
law
to
the
contrary,
the
increased
expensing
allowance
under
section
179
of
the
Internal
Revenue
Code
,
as
amended
by
Pub.
L.
No.
115-97,
§13101,
applies
in
computing
net
income
for
state
tax
purposes
for
tax
years
beginning
on
or
after
January
1,
2019
2018
,
subject
to
the
limitations
in
this
subsection
for
tax
years
beginning
on
or
after
January
1,
2019,
but
before
prior
to
January
1,
2020.
Senate
File
220,
p.
2
b.
If
the
taxpayer
has
taken
the
increased
expensing
allowance
under
section
179
of
the
Internal
Revenue
Code
,
as
amended
by
Pub.
L.
No.
115-97,
§13101,
for
purposes
of
computing
federal
taxable
income
for
tax
years
beginning
on
or
after
January
1,
2019
2018
,
but
before
January
1,
2020,
then
the
taxpayer
shall
make
the
following
adjustments
to
federal
taxable
income
when
computing
net
income
for
state
tax
purposes
for
the
same
tax
year:
(1)
Add
the
total
amount
of
expense
deduction
taken
on
section
179
property
allowable
for
federal
tax
purposes
under
section
179
of
the
Internal
Revenue
Code
,
as
amended
by
Pub.
L.
No.
115-97,
§13101
.
(2)
(a)
Subtract
For
tax
years
beginning
on
or
after
January
1,
2018,
but
before
January
1,
2019,
subtract
the
amount
of
expense
deduction
on
section
179
property
allowable
for
federal
tax
purposes
under
section
179
of
the
Internal
Revenue
Code,
as
amended
by
Pub.
L.
No.
115-97,
§13101,
not
to
exceed
seventy
thousand
dollars.
The
subtraction
in
this
subparagraph
division
shall
be
reduced,
but
not
below
zero,
by
the
amount
by
which
the
total
cost
of
section
179
property
placed
in
service
by
the
taxpayer
during
the
tax
year
exceeds
two
hundred
eighty
thousand
dollars.
(b)
For
the
tax
years
beginning
on
or
after
January
1,
2019,
but
before
January
1,
2020,
subtract
the
amount
of
expense
deduction
on
section
179
property
allowable
for
federal
tax
purposes
under
section
179
of
the
Internal
Revenue
Code,
as
amended
by
Pub.
L.
No.
115-97,
§13101,
not
to
exceed
one
hundred
thousand
dollars.
The
subtraction
in
this
subparagraph
shall
be
reduced,
but
not
below
zero,
by
the
amount
by
which
the
total
cost
of
section
179
property
placed
in
service
by
the
taxpayer
during
the
tax
year
exceeds
four
hundred
thousand
dollars.
(3)
Any
other
adjustments
to
gains
or
losses
necessary
to
reflect
adjustments
made
in
subparagraphs
(1)
and
(2).
c.
The
director
shall
adopt
rules
pursuant
to
chapter
17A
to
administer
this
subsection
.
15.
a.
For
tax
years
beginning
on
or
after
January
1,
2019
2018
,
but
before
January
1,
2020,
a
taxpayer
may
elect
to
take
advantage
of
this
subsection
in
lieu
of
subsection
14
,
Senate
File
220,
p.
3
but
only
if
the
taxpayer’s
total
expensing
allowance
deduction
for
federal
tax
purposes
under
section
179
of
the
Internal
Revenue
Code
,
as
amended
by
Pub.
L.
No.
115-97,
§13101,
that
is
allocated
to
the
taxpayer
from
one
or
more
partnerships
or
limited
liability
companies
electing
to
have
the
income
taxed
directly
to
the
owners
exceeds
seventy
thousand
dollars
for
a
tax
year
beginning
during
the
2018
calendar
year,
or
exceeds
one
hundred
thousand
dollars
for
the
tax
year
beginning
during
the
2019
calendar
year,
and
would,
except
as
provided
in
this
subsection
,
be
limited
for
purposes
of
computing
net
income
for
state
tax
purposes
pursuant
to
subsection
14
.
b.
A
taxpayer
who
elects
to
take
advantage
of
this
subsection
shall
make
the
following
adjustments
to
federal
taxable
income
when
computing
net
income
for
state
tax
purposes:
(1)
Add
the
total
amount
of
section
179
expense
deduction
allocated
to
the
taxpayer
from
all
partnerships
or
limited
liability
companies
electing
to
have
the
income
taxed
directly
to
the
owners,
to
the
extent
the
allocated
amount
was
allowed
as
a
deduction
to
the
taxpayer
for
federal
tax
purposes
for
the
tax
year
under
section
179
of
the
Internal
Revenue
Code
,
as
amended
by
Pub.
L.
No.
115-97,
§13101
.
(2)
From
the
amount
added
in
subparagraph
(1),
do
the
following:
(a)
For
tax
years
beginning
on
or
after
January
1,
2018,
but
before
January
1,
2019,
subtract
the
first
seventy
thousand
dollars
of
expensing
allowance
deduction
on
section
179
property.
(b)
For
tax
years
beginning
on
or
after
January
1,
2019,
but
before
January
1,
2020,
subtract
the
first
one
hundred
thousand
dollars
of
expensing
allowance
deduction
on
section
179
property.
(3)
The
remaining
amount,
equal
to
the
difference
between
the
amount
added
in
subparagraph
(1),
and
the
amount
subtracted
in
subparagraph
(2),
may
be
deducted
by
the
taxpayer
but
such
deduction
shall
be
amortized
equally
over
five
tax
years
beginning
in
the
following
tax
year.
(4)
Any
other
adjustments
to
gains
or
losses
necessary
to
reflect
adjustments
made
in
subparagraphs
(1)
through
(3).
Senate
File
220,
p.
4
c.
A
taxpayer
who
elects
to
take
advantage
of
this
subsection
shall
not
take
the
increased
expensing
allowance
under
section
179
of
the
Internal
Revenue
Code
,
as
amended
by
Pub.
L.
No.
115-97,
§13101,
for
any
section
179
property
placed
in
service
by
the
taxpayer
in
computing
taxable
income
for
state
tax
purposes.
If
the
taxpayer
has
taken
any
such
deduction
for
purposes
of
computing
federal
taxable
income,
the
taxpayer
shall
make
the
following
adjustments
to
federal
taxable
income
when
computing
net
income
for
state
tax
purposes:
(1)
Add
the
total
amount
of
expense
deduction
for
federal
tax
purposes
taken
on
section
179
property
placed
in
service
by
the
taxpayer
under
section
179
of
the
Internal
Revenue
Code
,
as
amended
by
Pub.
L.
No.
115-97,
§13101
.
(2)
Subtract
the
amount
of
depreciation
allowable
on
such
property
under
the
modified
accelerated
cost
recovery
system
described
in
section
168
of
the
Internal
Revenue
Code,
without
regard
to
section
168(k)
of
the
Internal
Revenue
Code.
The
taxpayer
shall
continue
to
take
depreciation
on
the
applicable
property
in
future
tax
years
to
the
extent
allowed
under
the
modified
accelerated
cost
recovery
system
described
in
section
168
of
the
Internal
Revenue
Code,
without
regard
to
section
168(k)
of
the
Internal
Revenue
Code.
(3)
Any
other
adjustments
to
gains
or
losses
necessary
to
reflect
the
adjustments
made
in
subparagraphs
(1)
and
(2).
d.
The
election
made
under
this
subsection
is
for
one
tax
year
and
the
taxpayer
may
elect
or
not
elect
to
take
advantage
of
this
subsection
in
any
subsequent
tax
year.
However,
not
electing
to
take
advantage
of
this
subsection
in
a
subsequent
tax
year
shall
not
affect
the
taxpayer’s
ability
to
claim
the
tax
deduction
under
paragraph
“b”
,
subparagraph
(3),
that
originated
from
a
previous
tax
year.
d.
e.
The
director
shall
adopt
rules
pursuant
to
chapter
17A
to
administer
this
subsection
.
Sec.
2.
EFFECTIVE
DATE.
This
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
enactment.
Senate
File
220,
p.
5
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
retroactively
to
January
1,
2018,
for
tax
years
beginning
on
or
after
that
date.
______________________________
CHARLES
SCHNEIDER
President
of
the
Senate
______________________________
LINDA
UPMEYER
Speaker
of
the
House
I
hereby
certify
that
this
bill
originated
in
the
Senate
and
is
known
as
Senate
File
220,
Eighty-eighth
General
Assembly.
______________________________
W.
CHARLES
SMITHSON
Secretary
of
the
Senate
Approved
_______________,
2019
______________________________
KIM
REYNOLDS
Governor
