Senate File 2201 - Introduced



                                 SENATE FILE       
                                 BY  ZAUN, McKINLEY, WARD, NOBLE,
                                     PUTNEY, GASKILL, BEHN, WIECK,
                                     ZIEMAN, HOUSER, KETTERING,
                                     BOETTGER, HARTSUCH, MULDER,
                                     and JOHNSON



    Passed Senate, Date               Passed House, Date             
    Vote:  Ayes        Nays           Vote:  Ayes        Nays         
                 Approved                            

                                      A BILL FOR

  1 An Act relating to the exemption under the individual income tax
  2    of certain federal tax rebates and including a retroactive
  3    applicability date provision.
  4 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
  5 TLSB 6080SS 82
  6 mg/sc/14

PAG LIN



  1  1    Section 1.  Section 422.9, Code 2007, is amended by adding
  1  2 the following new subsection:
  1  3    NEW SUBSECTION.  8.  In determining the amount of deduction
  1  4 for federal income tax under subsection 1 or subsection 2,
  1  5 paragraph "b", for tax years beginning in the 2008 calendar
  1  6 year, the amount of the deduction for the tax year shall not
  1  7 be adjusted by the amount received during the tax year of the
  1  8 income tax rebate provided pursuant to the federal Recovery
  1  9 Rebates and Economic Stimulus for the American People Act of
  1 10 2008, Pub. L. No. 110=185, and the amount of such income tax
  1 11 rebate shall not be subject to taxation under this division.
  1 12    Sec. 2.  RETROACTIVE APPLICABILITY DATE.  This Act applies
  1 13 retroactively to January 1, 2008, for tax years beginning on
  1 14 or after that date and before January 1, 2009.
  1 15                           EXPLANATION
  1 16    Under state individual income tax, an individual is allowed
  1 17 a deduction for federal income tax paid during the tax year,
  1 18 adjusted by any federal income tax refunds received during the
  1 19 same tax year.  This bill provides that for the 2008 tax year
  1 20 any federal tax rebate received under the federal Recovery
  1 21 Rebates and Economic Stimulus for the American People Act of
  1 22 2008 is not subject to tax and thus would not be used to
  1 23 reduce any deduction an individual has for federal income
  1 24 taxes paid.
  1 25    The bill applies retroactively to January 1, 2008, for tax
  1 26 years that begin on or after that date but before January 1,
  1 27 2009.
  1 28 LSB 6080SS 82
  1 29 mg/sc/14