Bill Text: IA SF475 | 2015-2016 | 86th General Assembly | Introduced
Bill Title: A bill for an act creating a home modification tax credit available against the individual income tax, and including retroactive and other applicability provisions.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2015-03-30 - Subcommittee, Quirmbach, Dotzler, and Smith. S.J. 740. [SF475 Detail]
Download: Iowa-2015-SF475-Introduced.html
Senate File 475 - Introduced SENATE FILE BY JOHNSON and HART A BILL FOR 1 An Act creating a home modification tax credit available 2 against the individual income tax, and including retroactive 3 and other applicability provisions. 4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 1836XS (2) 86 mm/sc PAG LIN 1 1 Section 1. NEW SECTION. 422.10A Home modification tax 1 2 credit. 1 3 1. For purposes of this section, unless the context 1 4 otherwise requires: 1 5 a. "Age in place" means the ability to live in one's own 1 6 home and community safely, independently, and comfortably, 1 7 regardless of age, income, or ability level. 1 8 b. "Dependent" has the same meaning as provided by the 1 9 Internal Revenue Code. 1 10 c. "Disability" means the same as defined in 42 U.S.C. 1 11 {12102. 1 12 d. (1) "Eligible individual" means an individual who has 1 13 net income for the tax year equal to two hundred fifty percent 1 14 or less of the United States poverty level, as defined by the 1 15 most recently revised poverty income guidelines published by 1 16 the United States department of health and human services, and 1 17 who meets one of the following requirements: 1 18 (a) The individual has a disability. 1 19 (b) The individual has a dependent with a disability. 1 20 (c) The individual, or a dependent of the individual, has 1 21 a chronic condition the progression of which will require a 1 22 permanent modification or permanent technology enhancement to 1 23 the individual's or dependent's primary residence within three 1 24 years in order to allow the individual or dependent to remain 1 25 in the home and age in place. 1 26 (2) In order to qualify as an eligible individual, the 1 27 individual or the dependent must obtain a signed verification 1 28 from the individual's or dependent's primary physician 1 29 documenting the presence of one of the requirements in 1 30 subparagraph (1), subparagraph divisions (a) through (c). 1 31 (3) For purposes of determining the net income threshold in 1 32 subparagraph (1), the combined net income of a husband and wife 1 33 shall be considered. 1 34 e. "Home modification expenses" means expenses incurred in 1 35 the permanent modification or permanent technology enhancement 2 1 of a home that permits the resident to remain in the home. The 2 2 department shall establish criteria, by rule, for determining 2 3 what constitutes a home modification expense. 2 4 f. "Physician" means an individual authorized to practice 2 5 medicine and surgery or osteopathic medicine and surgery under 2 6 the laws of any state. 2 7 2. The taxes imposed under this division, less the credits 2 8 allowed under section 422.12, shall be reduced by a home 2 9 modification tax credit equal to the first two thousand five 2 10 hundred dollars of unreimbursed home modification expenses paid 2 11 or incurred by an eligible individual during the tax year in 2 12 connection with residential property located in Iowa that is 2 13 the primary residence of the eligible individual or a dependent 2 14 of the eligible individual. 2 15 3. Any credit in excess of the tax liability is refundable. 2 16 In lieu of claiming a refund, the taxpayer may elect to have 2 17 the overpayment shown on the taxpayer's final, completed return 2 18 credited to the tax liability for the following tax year. 2 19 4. This section shall not be construed to prohibit 2 20 a taxpayer from deducting home modification expenses in 2 21 determining net income or taxable income for state income tax 2 22 purposes if otherwise allowed under state law. 2 23 5. The department shall adopt rules under chapter 17A 2 24 to administer this section, including but not limited to 2 25 rules establishing allowable home modification expenses. 2 26 In determining allowable home modification expenses, the 2 27 department shall consult with the prevention of disabilities 2 28 policy council established under chapter 225B. For purposes 2 29 of providing consultation to the department pursuant to this 2 30 subsection, the prevention of disabilities policy council shall 2 31 seek input from stakeholder groups in this state, including 2 32 but not limited to the department of human services, the 2 33 department for the blind, the department of human rights, the 2 34 department of education, including the division of vocational 2 35 rehabilitation services, and the statewide independent living 3 1 council. 3 2 Sec. 2. RETROACTIVE APPLICABILITY. This Act applies 3 3 retroactively to January 1, 2015, for tax years beginning on 3 4 or after that date. 3 5 Sec. 3. APPLICABILITY. This Act applies to home 3 6 modification expenses paid or incurred on or after the 3 7 effective date of this Act. 3 8 EXPLANATION 3 9 The inclusion of this explanation does not constitute agreement with 3 10 the explanation's substance by the members of the general assembly. 3 11 This bill creates a home modification tax credit available 3 12 against the individual income tax for the first $2,500 of 3 13 unreimbursed home modification expenses paid or incurred by 3 14 an eligible individual during the tax year in connection with 3 15 residential property located in Iowa that is the primary 3 16 residence of the eligible individual or a dependent of the 3 17 eligible individual. 3 18 An individual is an "eligible individual" if the individual 3 19 does not have net income (including his or her spouse's net 3 20 income) in excess of 250 percent of the U.S. poverty level, 3 21 and if the individual meets one of the other conditions 3 22 specified in the bill. The individual must be disabled or have 3 23 a dependent who is disabled, or the individual or dependent of 3 24 the individual must have a chronic condition that will require 3 25 a permanent modification or permanent technology enhancement to 3 26 the primary residence within three years in order to allow the 3 27 individual or the individual's dependent to remain at home and 3 28 age in place. The disability or chronic condition requirements 3 29 must be documented by a signed verification from the primary 3 30 physician of the individual or dependent. "Age in place", 3 31 "dependent", "disability", and "physician" are all defined in 3 32 the bill. 3 33 The tax credit is refundable. To the extent the home 3 34 modification expenses are otherwise deductible under Iowa law 3 35 for state income tax purposes, the bill allows the expenses to 4 1 be deducted and claimed under the home modification tax credit. 4 2 The bill defines "home modification expenses" as expenses 4 3 incurred in the permanent modification or permanent technology 4 4 enhancement of a home that permits the resident to remain in 4 5 the home, but requires the department of revenue (department) 4 6 to adopt rules establishing allowable home modification 4 7 expenses and criteria for determining what constitutes home 4 8 modification expenses. In adopting rules, the department is 4 9 required to consult with the prevention of disabilities policy 4 10 council (council), and the council is required to consult with 4 11 various stakeholders. 4 12 The bill applies retroactively to tax years beginning on or 4 13 after January 1, 2015. The bill applies to home modification 4 14 expenses paid or incurred on or after July 1, 2015. LSB 1836XS (2) 86 mm/sc
