Bill Text: IA SF397 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act coupling for Iowa tax purposes with certain federal changes made to the expensing of certain depreciable business assets under section 179 of the Internal Revenue Code, and including effective date and retroactive applicability provisions.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-03-07 - Subcommittee: Feenstra, Edler, and Jochum. S.J. 508. [SF397 Detail]
Download: Iowa-2017-SF397-Introduced.html
Senate File 397 - Introduced SENATE FILE BY EDLER A BILL FOR 1 An Act coupling for Iowa tax purposes with certain federal 2 changes made to the expensing of certain depreciable 3 business assets under section 179 of the Internal Revenue 4 Code, and including effective date and retroactive 5 applicability provisions. 6 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2386XS (2) 87 mm/sc/rn PAG LIN 1 1 Section 1. Section 422.7, Code 2017, is amended by adding 1 2 the following new subsection: 1 3 NEW SUBSECTION. 52. Notwithstanding any provision of law 1 4 to the contrary, a taxpayer is allowed to take the increased 1 5 expensing allowance under section 179 of the Internal Revenue 1 6 Code, as amended by Pub. L. No. 114=113, {124, in computing 1 7 adjusted gross income for state tax purposes. 1 8 Sec. 2. Section 422.35, Code 2017, is amended by adding the 1 9 following new subsection: 1 10 NEW SUBSECTION. 26. Notwithstanding any provision of law 1 11 to the contrary, a taxpayer is allowed to take the increased 1 12 expensing allowance under section 179 of the Internal Revenue 1 13 Code, as amended by Pub. L. No. 114=113, {124, in computing 1 14 taxable income for state tax purposes. 1 15 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 1 16 immediate importance, takes effect upon enactment. 1 17 Sec. 4. RETROACTIVE APPLICABILITY. This Act applies 1 18 retroactively to January 1, 2016, for tax years beginning on 1 19 or after that date. 1 20 EXPLANATION 1 21 The inclusion of this explanation does not constitute agreement with 1 22 the explanation's substance by the members of the general assembly. 1 23 This bill couples for the Iowa individual and corporate 1 24 income tax and franchise tax with federal changes made to the 1 25 expensing of certain depreciable business assets under section 1 26 179 of the Internal Revenue Code in the federal Protecting 1 27 Americans from Tax Hikes Act of 2015 (PATH Act) for tax years 1 28 beginning on or after January 1, 2016. The PATH Act, in part, 1 29 increased the maximum section 179 deduction from $25,000 to 1 30 $500,000, and increased the investment limitation at which the 1 31 amount of the deduction begins to be reduced from $200,000 to 1 32 $2 million, for tax years beginning in 2015 or later. The 1 33 PATH Act also made these increases permanent and provided for 1 34 adjustments to these amounts in the future for inflation. 1 35 The bill takes effect upon enactment and applies 2 1 retroactively to tax years beginning on or after January 1, 2 2 2016. LSB 2386XS (2) 87 mm/sc/rn
