Bill Text: IA SF262 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act creating an exemption from the computation of the state individual income tax of net capital gains from the sale of an equity investment in a qualified Iowa business and including retroactive applicability provisions.
Spectrum: Partisan Bill (Republican 16-0)
Status: (Introduced - Dead) 2013-12-31 - END OF 2013 ACTIONS [SF262 Detail]
Download: Iowa-2013-SF262-Introduced.html
Senate
File
262
-
Introduced
SENATE
FILE
262
BY
CHELGREN
,
WHITVER
,
ZAUN
,
SINCLAIR
,
ROZENBOOM
,
GUTH
,
KAPUCIAN
,
SORENSON
,
BERTRAND
,
SEGEBART
,
ZUMBACH
,
BREITBACH
,
CHAPMAN
,
BEHN
,
FEENSTRA
,
and
ANDERSON
A
BILL
FOR
An
Act
creating
an
exemption
from
the
computation
of
the
state
1
individual
income
tax
of
net
capital
gains
from
the
sale
2
of
an
equity
investment
in
a
qualified
Iowa
business
and
3
including
retroactive
applicability
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
5
TLSB
1791SS
(5)
85
mm/sc
S.F.
262
Section
1.
Section
422.7,
Code
2013,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
57.
a.
Subtract,
to
the
extent
included,
3
the
net
capital
gains
from
the
sale
of
an
equity
investment
in
4
a
qualified
Iowa
business.
5
b.
In
order
to
be
eligible
for
the
deduction
in
paragraph
6
“a”
,
the
taxpayer
must
be
a
resident
of
this
state.
7
c.
For
purposes
of
this
subsection:
8
(1)
“Equity
investment”
means
an
equity
interest
in
a
9
business
which
equity
interest
was
received
in
exchange
for
10
a
capital
contribution
or
payment
in
the
form
of
cash,
real
11
property,
or
tangible
personal
property.
12
(2)
“Qualified
Iowa
business”
means
a
business
whose
13
commercial
domicile,
as
defined
in
section
422.32,
is
14
in
this
state,
and
includes
a
sole
proprietorship,
joint
15
venture,
partnership,
limited
liability
company,
corporation,
16
association,
or
any
other
business
entity
operated
for
profit.
17
Sec.
2.
RETROACTIVE
APPLICABILITY.
This
Act
applies
18
retroactively
to
January
1,
2013,
for
tax
years
beginning
on
19
or
after
that
date.
20
EXPLANATION
21
This
bill
creates
an
exemption
from
the
computation
of
22
net
income
for
the
individual
income
tax
of
net
capital
23
gains
from
the
sale
of
an
equity
investment
in
a
qualified
24
Iowa
business.
“Equity
investment”
is
defined
as
an
equity
25
interest
in
a
business
that
was
received
in
exchange
for
a
26
capital
contribution
or
payment
in
the
form
of
cash,
real
27
property,
or
tangible
personal
property.
“Qualified
Iowa
28
business”
is
defined
as
any
business
operated
for
profit
whose
29
commercial
domicile
is
in
Iowa.
In
order
to
be
eligible
for
30
this
exemption
a
taxpayer
must
be
a
resident
of
Iowa.
31
The
bill
applies
retroactively
to
January
1,
2013,
for
tax
32
years
beginning
on
or
after
that
date.
33
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