Bill Text: IA HSB683 | 2023-2024 | 90th General Assembly | Introduced
Bill Title: A bill for an act relating to medical cannabidiol by providing deductions from the individual and corporate income taxes for expenses incurred by medical cannabidiol manufacturers and dispensaries, and including retroactive applicability provisions.(See HF 2650.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2024-03-06 - Committee report approving bill, renumbered as HF 2650. [HSB683 Detail]
Download: Iowa-2023-HSB683-Introduced.html
House
Study
Bill
683
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
KAUFMANN)
A
BILL
FOR
An
Act
relating
to
medical
cannabidiol
by
providing
deductions
1
from
the
individual
and
corporate
income
taxes
for
2
expenses
incurred
by
medical
cannabidiol
manufacturers
3
and
dispensaries,
and
including
retroactive
applicability
4
provisions.
5
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
6
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Section
1.
Section
422.7,
Code
2024,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
44.
Subtract,
to
the
extent
included,
3
the
amount
of
business
expense
for
a
medical
cannabidiol
4
manufacturer
or
a
medical
cannabidiol
dispensary
licensed
5
pursuant
to
chapter
124E
without
regard
to
section
280E
of
the
6
Internal
Revenue
Code.
7
Sec.
2.
Section
422.35,
Code
2024,
is
amended
by
adding
the
8
following
new
subsection:
9
NEW
SUBSECTION
.
14.
Subtract,
to
the
extent
included,
10
the
amount
of
business
expense
for
a
medical
cannabidiol
11
manufacturer
or
a
medical
cannabidiol
dispensary
licensed
12
pursuant
to
chapter
124E
without
regard
to
section
280E
of
the
13
Internal
Revenue
Code.
14
Sec.
3.
RETROACTIVE
APPLICABILITY.
This
Act
applies
15
retroactively
to
January
1,
2021,
for
tax
years
beginning
on
16
or
after
that
date.
17
EXPLANATION
18
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
19
the
explanation’s
substance
by
the
members
of
the
general
assembly.
20
Under
federal
law,
a
medical
cannabidiol
manufacturer
and
21
a
medical
cannabidiol
dispensary
are
prohibited
from
taking
22
business
expense
deductions
by
section
280E
of
the
Internal
23
Revenue
Code.
Currently,
Iowa
computes
individual
net
24
income
and
corporate
taxable
income
based
upon
federal
income
25
calculations,
and
therefore
Iowa
currently
prohibits
a
medical
26
cannabidiol
manufacturer
and
a
medical
cannabidiol
dispensary
27
from
taking
business
expense
deductions
as
well
because
the
28
deductions
are
not
allowed
at
the
federal
level.
29
This
bill
allows
a
medical
cannabidiol
manufacturer
and
30
a
medical
cannabidiol
dispensary
licensed
pursuant
to
Code
31
chapter
124E
to
deduct
business
expenses
for
purposes
of
the
32
Iowa
individual
income
tax
or
corporate
income
tax.
33
The
bill
applies
retroactively
to
tax
years
beginning
on
or
34
after
January
1,
2021.
35
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