Bill Text: IA SF2379 | 2017-2018 | 87th General Assembly | Introduced

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Bill Title: A bill for an act exempting from the Iowa individual income tax the amount of income resulting from prize money and medals received from competition in the olympic or paralympic games, and including retroactive applicability provisions. (See SF 2399.)

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-03-06 - Subcommittee recommends passage. [SF2379 Detail]

Download: Iowa-2017-SF2379-Introduced.html

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Senate File 2379 - Introduced




                                 SENATE FILE       
                                 BY  SMITH

                                      A BILL FOR

  1 An Act exempting from the Iowa individual income tax the amount
  2    of income resulting from prize money and medals received
  3    from competition in the olympic or paralympic games, and
  4    including retroactive applicability provisions.
  5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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PAG LIN



  1  1    Section 1.  Section 422.7, Code 2018, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  18.  a.  Subtract, to the extent included,
  1  4 the amount of income resulting from the value of any medal
  1  5 awarded in, or any prize money received from the United States
  1  6 olympic committee on account of, competition in the olympic
  1  7 games or paralympic games.
  1  8    b.  The subtraction in paragraph "a" does not apply to a
  1  9 taxpayer whose net income exceeds one million dollars for the
  1 10 tax year, or five hundred thousand dollars in the case of a
  1 11 married person filing separate returns or separately on a
  1 12 combined return.
  1 13    Sec. 2.  RETROACTIVE APPLICABILITY.  This Act applies
  1 14 retroactively to January 1, 2018, for tax years beginning on
  1 15 or after that date.
  1 16                           EXPLANATION
  1 17 The inclusion of this explanation does not constitute agreement with
  1 18 the explanation's substance by the members of the general assembly.
  1 19    This bill relates to the taxation of medals or prize money
  1 20 received from competition in the olympic or paralympic games.
  1 21    For federal income tax purposes pursuant to Internal Revenue
  1 22 Code {74(d), enacted by Congress in 2016, income resulting from
  1 23 the value of any medal awarded in, or any prize money received
  1 24 from the United States olympic committee on account of,
  1 25 competition in the olympic games or paralympic games is exempt
  1 26 from the federal income tax for individuals whose adjusted
  1 27 gross income does not exceed $1 million ($500,000 for married
  1 28 individuals filing separately).  However, Iowa has not coupled
  1 29 with (enacted) this federal provision for purposes of the Iowa
  1 30 individual income tax.
  1 31    The bill exempts from the Iowa individual income tax the
  1 32 amount of income resulting from the value of any medal awarded
  1 33 in, or any prize money received from the United States olympic
  1 34 committee on account of, competition in the olympic games or
  1 35 paralympic games to any taxpayer whose net income does not
  2  1 exceed $1 million ($500,000 in the case of a married person
  2  2 filing separate returns or separately on a combined return).
  2  3    The bill applies retroactively to January 1, 2018, for tax
  2  4 years beginning on or after that date.
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