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: TLSB 5377XS (5) 87 mm/jh 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. LSB 5377XS (5) 87 mm/jh