Bill Text: IA HF110 | 2013-2014 | 85th General Assembly | Introduced
Bill Title: A bill for an act relating to taxation by updating the Code references to the Internal Revenue Code and decoupling from certain federal bonus depreciation provisions, providing certain taxpayers additional time to file a claim for refund or credit of individual income tax, extending the property assessment appeal board, and including effective date and retroactive applicability provisions. (Formerly HSB 38)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2013-12-31 - END OF 2013 ACTIONS [HF110 Detail]
Download: Iowa-2013-HF110-Introduced.html
House
File
110
-
Introduced
HOUSE
FILE
110
BY
COMMITTEE
ON
WAYS
AND
MEANS
(SUCCESSOR
TO
HSB
38)
A
BILL
FOR
An
Act
relating
to
taxation
by
updating
the
Code
references
1
to
the
Internal
Revenue
Code
and
decoupling
from
certain
2
federal
bonus
depreciation
provisions,
providing
certain
3
taxpayers
additional
time
to
file
a
claim
for
refund
or
4
credit
of
individual
income
tax,
extending
the
property
5
assessment
appeal
board,
and
including
effective
date
and
6
retroactive
applicability
provisions.
7
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
8
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DIVISION
I
1
INTERNAL
REVENUE
CODE
REFERENCES
2
Section
1.
Section
15.335,
subsection
7,
paragraph
b,
Code
3
2013,
is
amended
to
read
as
follows:
4
b.
For
purposes
of
this
section
,
“Internal
Revenue
Code”
5
means
the
Internal
Revenue
Code
in
effect
on
January
1,
2012
6
2013,
and
as
amended
by
the
American
Taxpayer
Relief
Act
of
7
2012,
Pub.
L.
No.
112-240
.
8
Sec.
2.
Section
422.3,
subsection
5,
Code
2013,
is
amended
9
to
read
as
follows:
10
5.
“Internal
Revenue
Code”
means
the
Internal
Revenue
Code
11
of
1954,
prior
to
the
date
of
its
redesignation
as
the
Internal
12
Revenue
Code
of
1986
by
the
Tax
Reform
Act
of
1986,
or
means
13
the
Internal
Revenue
Code
of
1986
as
amended
to
and
including
14
January
1,
2012
2013,
and
as
amended
by
the
American
Taxpayer
15
Relief
Act
of
2012,
Pub.
L.
No.
112-240
.
16
Sec.
3.
Section
422.9,
subsection
2,
paragraph
i,
Code
2013,
17
is
amended
to
read
as
follows:
18
i.
The
deduction
for
state
sales
and
use
taxes
is
allowable
19
only
if
the
taxpayer
elected
to
deduct
the
state
sales
and
use
20
taxes
in
lieu
of
state
income
taxes
under
section
164
of
the
21
Internal
Revenue
Code.
A
deduction
for
state
sales
and
use
22
taxes
is
not
allowed
if
the
taxpayer
has
taken
the
deduction
23
for
state
income
taxes
or
claimed
the
standard
deduction
under
24
section
63
of
the
Internal
Revenue
Code.
This
paragraph
25
applies
to
taxable
years
beginning
after
December
31,
2003,
and
26
before
January
1,
2008,
and
to
taxable
years
beginning
after
27
December
31,
2009,
and
before
January
1,
2012
2014
.
28
Sec.
4.
Section
422.10,
subsection
3,
paragraph
b,
Code
29
2013,
is
amended
to
read
as
follows:
30
b.
For
purposes
of
this
section
,
“Internal
Revenue
Code”
31
means
the
Internal
Revenue
Code
in
effect
on
January
1,
2012
32
2013,
and
as
amended
by
the
American
Taxpayer
Relief
Act
of
33
2012,
Pub.
L.
No.
112-240
.
34
Sec.
5.
Section
422.32,
subsection
1,
paragraph
g,
Code
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2013,
is
amended
to
read
as
follows:
1
g.
“Internal
Revenue
Code”
means
the
Internal
Revenue
Code
2
of
1954,
prior
to
the
date
of
its
redesignation
as
the
Internal
3
Revenue
Code
of
1986
by
the
Tax
Reform
Act
of
1986,
or
means
4
the
Internal
Revenue
Code
of
1986
as
amended
to
and
including
5
January
1,
2012
2013,
and
as
amended
by
the
American
Taxpayer
6
Relief
Act
of
2012,
Pub.
L.
No.
112-240
.
7
Sec.
6.
Section
422.33,
subsection
5,
paragraph
d,
8
subparagraph
(2),
Code
2013,
is
amended
to
read
as
follows:
9
(2)
For
purposes
of
this
subsection
,
“Internal
Revenue
Code”
10
means
the
Internal
Revenue
Code
in
effect
on
January
1,
2012
11
2013,
and
as
amended
by
the
American
Taxpayer
Relief
Act
of
12
2012,
Pub.
L.
No.
112-240
.
13
Sec.
7.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
14
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
15
enactment.
16
Sec.
8.
RETROACTIVE
APPLICABILITY.
This
division
of
this
17
Act
applies
retroactively
to
January
1,
2012,
for
tax
years
18
beginning
on
or
after
that
date.
19
DIVISION
II
20
BONUS
DEPRECIATION
21
Sec.
9.
Section
422.7,
subsection
39A,
unnumbered
paragraph
22
1,
Code
2013,
is
amended
to
read
as
follows:
23
The
additional
first-year
depreciation
allowance
authorized
24
in
section
168(k)
of
the
Internal
Revenue
Code,
as
enacted
by
25
Pub.
L.
No.
110-185,
§
103,
Pub.
L.
No.
111-5,
§
1201,
Pub.
L.
26
No.
111-240,
§
2022,
and
Pub.
L.
No.
111-312,
§
401,
and
Pub.
L.
27
No.
112-240,
§
331,
does
not
apply
in
computing
net
income
for
28
state
tax
purposes.
If
the
taxpayer
has
taken
the
additional
29
first-year
depreciation
allowance
for
purposes
of
computing
30
federal
adjusted
gross
income,
then
the
taxpayer
shall
make
the
31
following
adjustments
to
federal
adjusted
gross
income
when
32
computing
net
income
for
state
tax
purposes:
33
Sec.
10.
Section
422.35,
subsection
19A,
unnumbered
34
paragraph
1,
Code
2013,
is
amended
to
read
as
follows:
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The
additional
first-year
depreciation
allowance
authorized
1
in
section
168(k)
of
the
Internal
Revenue
Code,
as
enacted
by
2
Pub.
L.
No.
110-185,
§
103,
Pub.
L.
No.
111-5,
§
1201,
Pub.
L.
3
No.
111-240,
§
2022,
and
Pub.
L.
No.
111-312,
§
401,
and
Pub.
L.
4
No.
112-240,
§
331,
does
not
apply
in
computing
net
income
for
5
state
tax
purposes.
If
the
taxpayer
has
taken
the
additional
6
first-year
depreciation
allowance
for
purposes
of
computing
7
federal
taxable
income,
then
the
taxpayer
shall
make
the
8
following
adjustments
to
federal
taxable
income
when
computing
9
net
income
for
state
tax
purposes:
10
Sec.
11.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
11
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
12
enactment.
13
Sec.
12.
RETROACTIVE
APPLICABILITY.
This
division
of
this
14
Act
applies
retroactively
to
January
1,
2013,
for
tax
years
15
ending
on
or
after
that
date.
16
DIVISION
III
17
FILING
OF
CLAIMS
18
Sec.
13.
Section
422.73,
Code
2013,
is
amended
by
adding
the
19
following
new
subsection:
20
NEW
SUBSECTION
.
1A.
Notwithstanding
subsection
1,
a
claim
21
for
refund
or
credit
of
the
individual
income
tax
paid
which
22
resulted
from
a
reduction
in
a
person’s
federal
adjusted
gross
23
income
due
to
section
1106
of
the
FAA
Modernization
and
Reform
24
Act
of
2012,
Pub.
L.
No.
112-95,
shall
be
considered
timely
if
25
the
claim
is
filed
with
the
department
on
or
before
June
30,
26
2013.
27
Sec.
14.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
28
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
29
enactment.
30
Sec.
15.
RETROACTIVE
APPLICABILITY.
This
division
of
this
31
Act
applies
retroactively
to
January
1,
2012,
for
refund
or
32
credit
claims
filed
on
or
after
that
date.
33
DIVISION
IV
34
PROPERTY
ASSESSMENT
APPEAL
BOARD
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Sec.
16.
Section
421.1A,
subsection
6,
Code
2013,
is
amended
1
to
read
as
follows:
2
6.
The
members
of
the
property
assessment
appeal
board
3
shall
receive
compensation
from
the
state
commensurate
with
4
the
salary
of
a
district
judge
through
December
31,
2013
.
The
5
members
of
the
board
shall
be
considered
state
employees
for
6
purposes
of
salary
and
benefits.
The
members
of
the
board
and
7
any
employees
of
the
board,
when
required
to
travel
in
the
8
discharge
of
official
duties,
shall
be
paid
their
actual
and
9
necessary
expenses
incurred
in
the
performance
of
duties.
10
Sec.
17.
Section
421.1A,
subsection
7,
Code
2013,
is
amended
11
by
striking
the
subsection.
12
Sec.
18.
REPEAL.
2005
Iowa
Acts,
chapter
150,
section
134,
13
is
repealed.
14
Sec.
19.
EFFECTIVE
UPON
ENACTMENT.
This
division
of
this
15
Act,
being
deemed
of
immediate
importance,
takes
effect
upon
16
enactment.
17
EXPLANATION
18
This
bill
updates
the
Iowa
Code
references
to
the
Internal
19
Revenue
Code
to
make
federal
income
tax
revisions
enacted
by
20
Congress
in
2012,
and
by
the
American
Taxpayer
Relief
Act
of
21
2012,
Pub.
L.
No.
112-240,
applicable
for
Iowa
income
tax
22
purposes,
decouples
with
certain
bonus
depreciation
provisions,
23
provides
certain
taxpayers
additional
time
to
file
a
claim
for
24
refund
or
credit
of
individual
income
tax
paid,
and
extends
the
25
property
assessment
appeal
board.
26
DIVISION
I
——
INTERNAL
REVENUE
CODE
REFERENCES.
The
27
division
amends
Code
sections
422.3
and
422.32,
general
28
definition
sections
in
the
chapter
of
the
Code
that
governs
29
corporate
and
individual
income
tax
and
the
franchise
tax
30
on
financial
institutions,
to
update
the
references
to
the
31
Internal
Revenue
Code.
32
The
division
amends
Code
sections
15.335,
422.10,
and
422.33
33
to
update
the
references
to
the
Internal
Revenue
Code
for
the
34
state
research
activities
credit
for
individuals,
corporations,
35
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and
corporations
in
economic
development
areas
to
include
the
1
federal
changes
to
the
research
activities
credit
and
the
2
alternative
simplified
research
activities
credit.
3
Code
section
422.9
provides
individuals
a
deduction
from
net
4
income
for
state
sales
and
use
taxes
if
the
individual
chose
5
to
deduct
sales
and
use
tax
in
lieu
of
state
income
taxes
or
6
the
standard
deduction
for
federal
income
tax
purposes.
This
7
deduction
was
set
to
expire
under
both
federal
and
Iowa
law
for
8
tax
years
beginning
on
or
after
January
1,
2012.
The
American
9
Taxpayer
Relief
Act
of
2012
extended
the
federal
deduction
for
10
the
2012
and
2013
tax
years.
This
division
extends
the
Iowa
11
deduction
for
the
2012
and
2013
tax
years.
12
Division
I
takes
effect
upon
enactment
and
applies
13
retroactively
to
January
1,
2012,
for
tax
years
beginning
on
14
or
after
that
date.
15
DIVISION
II
——
BONUS
DEPRECIATION.
The
division
decouples,
16
for
Iowa
income
tax
purposes,
from
the
federal
additional
17
first-year
depreciation
allowance
in
section
168(k)
of
the
18
Internal
Revenue
Code
which
was
extended
by
the
American
19
Taxpayer
Relief
Act
of
2012.
20
Division
II
takes
effect
upon
enactment
and
applies
21
retroactively
to
January
1,
2013,
for
tax
years
ending
on
or
22
after
that
date.
23
DIVISION
III
——
FILING
OF
CLAIMS.
The
division
amends
24
Code
section
422.73,
relating
to
the
period
of
limitation
to
25
claim
a
tax
refund
or
credit,
to
provide
additional
time
for
26
taxpayers
affected
by
the
FAA
Modernization
and
Reform
Act
of
27
2012,
Pub.
L.
No.
112-95,
to
request
a
refund
or
credit
of
Iowa
28
individual
income
tax
paid.
The
federal
law
allows
a
qualified
29
airline
employee
who
received
a
settlement
payment
from
an
30
airline
company
in
bankruptcy
to
roll
over
that
amount
into
a
31
traditional
individual
retirement
account
(IRA)
and
exclude
32
that
amount
from
adjusted
gross
income
in
the
year
in
which
it
33
was
received.
The
federal
law
allowed
additional
time,
until
34
April
15,
2013,
for
a
refund
to
be
requested
for
federal
income
35
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tax
purposes
provided
the
rollover
occurred
within
180
days
of
1
February
14,
2012.
Iowa
taxpayers
whose
federal
adjusted
gross
2
income
was
reduced
due
to
this
federal
law
have
until
June
30,
3
2013,
to
request
a
refund
or
credit
for
Iowa
individual
income
4
tax
paid.
5
Division
III
takes
effect
upon
enactment
and
applies
6
retroactively
to
January
1,
2012,
for
refund
or
credit
claims
7
filed
on
or
after
that
date.
8
DIVISION
IV
——
PROPERTY
ASSESSMENT
APPEAL
BOARD.
Division
9
IV
of
the
bill
relates
to
the
property
assessment
appeal
10
board
created
under
Code
section
421.1A.
2005
Iowa
Acts,
11
chapter
150,
section
134,
provides
that
the
board
is
repealed
12
effective
July
1,
2013.
The
bill
repeals
2005
Iowa
Acts,
13
chapter
150,
section
134,
strikes
provisions
relating
to
the
14
property
assessment
appeal
board
review
committee,
and
makes
15
corresponding
changes
related
to
the
extension
of
the
board.
16
Division
IV
takes
effect
upon
enactment.
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