Bill Text: IA SSB1103 | 2019-2020 | 88th General Assembly | Introduced

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Bill Title: A bill for an act relating to claiming the adoption tax credit for qualified adoption expenses paid or incurred during a tax year and including retroactive applicability provisions.

Spectrum: Committee Bill

Status: (N/A - Dead) 2019-02-05 - Subcommittee: Feenstra, Jochum, and Sweeney. [SSB1103 Detail]

Download: Iowa-2019-SSB1103-Introduced.html

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Senate Study Bill 1103 - Introduced
SENATE FILE _____
BY (PROPOSED COMMITTEE ON
WAYS AND MEANS BILL BY
CHAIRPERSON FEENSTRA)
A BILL FOR
An Act relating to claiming the adoption tax credit for
qualified adoption expenses paid or incurred during a tax
year and including retroactive applicability provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
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Section 1. Section 422.12A, subsection 2, Code 2019, is
amended to read as follows:
2. The taxes imposed under this division , less the credits
allowed under section 422.12 , shall be reduced by an adoption
tax credit equal to the amount of qualified adoption expenses
paid or incurred by the taxpayer during the tax year in
connection with the adoption of a child by the taxpayer, not to
exceed five thousand dollars per adoption.
Sec. 2. Section 422.12A, Code 2019, is amended by adding the
following new subsection:
NEW SUBSECTION . 3A. The credit under this section with
respect to any qualified adoption expense shall be allowed
during a tax year as follows:
a. For any qualified adoption expense paid or incurred prior
to or during the tax year in which the adoption becomes final,
the tax year in which the adoption becomes final.
b. For any qualified adoption expense paid or incurred after
the tax year in which the adoption becomes final, the tax year
in which an adoption expense is paid or incurred.
Sec. 3. RETROACTIVE APPLICABILITY. This Act applies
retroactively to January 1, 2019, for tax years beginning on
or after that date.
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
This bill relates to claiming the adoption tax credit for
qualified adoption expenses paid or incurred by an individual
taxpayer during a tax year.
Currently, in order to claim the adoption tax credit the
taxpayer must pay or incur “qualified adoption expenses” during
the tax year, which are unreimbursed, and connected with the
adoption. The bill strikes the requirement that the “qualified
adoption expenses” be paid or incurred by the taxpayer during
the tax year.
The bill specifies that if a qualified adoption expense is
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S.F. _____
incurred prior to or during the tax year in which the adoption
becomes final, the qualified adoption expense shall be allowed
during the tax year in which the adoption becomes final.
For qualified adoption expenses incurred after the tax year
in which the adoption becomes final, the qualified adoption
expense shall be allowed during the tax year such adoption
expense was paid or incurred.
The bill applies retroactively to tax years beginning on or
after January 1, 2019.
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