Bill Text: IA SSB1102 | 2019-2020 | 88th General Assembly | Introduced
Bill Title: A bill for an act relating to the deduction of Iowa brewing ingredients from individual and corporate income taxes if used to make beer for sale, and including applicability provisions.
Spectrum: Committee Bill
Status: (N/A - Dead) 2019-02-19 - Subcommittee reassigned: Feenstra, Dotzler, and R. Smith. S.J. 345. [SSB1102 Detail]
Download: Iowa-2019-SSB1102-Introduced.html
Senate
Study
Bill
1102
-
Introduced
SENATE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
WAYS
AND
MEANS
BILL
BY
CHAIRPERSON
FEENSTRA)
A
BILL
FOR
An
Act
relating
to
the
deduction
of
Iowa
brewing
ingredients
1
from
individual
and
corporate
income
taxes
if
used
to
make
2
beer
for
sale,
and
including
applicability
provisions.
3
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
4
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Section
1.
Section
422.7,
Code
2019,
is
amended
by
adding
1
the
following
new
subsection:
2
NEW
SUBSECTION
.
60.
a.
Subtract
an
additional
deduction
3
for
the
expense
of
purchasing
Iowa
brewing
ingredients
if
used
4
to
make
beer
for
sale.
5
b.
This
subsection
applies
to
a
taxpayer
that
holds
a
valid
6
class
“A”
or
special
class
“A”
beer
permit
to
manufacture
beer.
7
c.
A
taxpayer
may
claim
the
deduction
as
a
partnership,
S
8
corporation,
limited
liability
company,
estate,
or
trust
or
9
claim
the
deduction
as
an
individual.
The
amount
claimed
by
10
the
individual
shall
be
based
upon
the
pro
rata
share
of
the
11
individual’s
earnings
of
a
partnership,
S
corporation,
limited
12
liability
company,
estate,
or
trust.
13
d.
For
purposes
of
this
subsection,
“Iowa
brewing
14
ingredient”
means
any
ingredient
that
is
grown
or
produced
15
in
Iowa
that
is
added
to
water
and
yeast
to
produce
beer,
16
including
but
not
limited
to
the
following:
hops,
fruits,
17
vegetables,
herbs,
spices,
and
honey.
18
Sec.
2.
Section
422.35,
Code
2019,
is
amended
by
adding
the
19
following
new
subsection:
20
NEW
SUBSECTION
.
26.
a.
Subtract
an
additional
deduction
21
for
the
expense
of
purchasing
Iowa
brewing
ingredients
if
used
22
to
make
beer
for
sale.
23
b.
This
subsection
applies
to
a
taxpayer
that
holds
a
valid
24
class
“A”
or
special
class
“A”
beer
permit
to
manufacture
beer.
25
c.
For
purposes
of
this
subsection,
“Iowa
brewing
26
ingredient”
means
any
ingredient
that
is
grown
or
produced
27
in
Iowa
that
is
added
to
water
and
yeast
to
produce
beer,
28
including
but
not
limited
to
the
following:
hops,
fruits,
29
vegetables,
herbs,
spices,
and
honey.
30
Sec.
3.
APPLICABILITY.
This
Act
applies
to
tax
years
31
beginning
on
or
after
January
1,
2020.
32
EXPLANATION
33
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
34
the
explanation’s
substance
by
the
members
of
the
general
assembly.
35
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This
bill
relates
to
deducting
Iowa
brewing
ingredients
from
1
individual
and
corporate
income
taxes
if
used
to
make
beer
for
2
sale.
3
The
bill
allows
an
additional
deduction
expense
for
4
purchasing
Iowa
brewing
ingredients
from
individual
and
5
corporate
income
taxes.
6
The
bill
applies
to
holders
of
a
valid
class
“A”
or
special
7
class
“A”
beer
permit
to
manufacture
beer.
Class
“A”
and
8
special
class
“A”
beer
permits
are
defined
in
Code
section
9
123.130.
10
The
bill
defines
“Iowa
brewing
ingredient”
to
mean
any
11
ingredient
that
is
grown
or
produced
in
Iowa
that
is
added
to
12
water
and
yeast
to
produce
beer,
including
but
not
limited
to
13
the
following:
hops,
fruits,
vegetables,
herbs,
spices,
and
14
honey.
15
The
bill
applies
to
tax
years
beginning
on
or
after
January
16
1,
2020.
17
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