Text: HF00415 Text: HF00417 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15.335, subsection 4, Code 2001, is 1 2 amended to read as follows: 1 3 4. For purposes of this section, "base amount", "basic 1 4 research payment", and "qualified research expense" mean the 1 5 same as defined for the federal credit for increasing research 1 6 activities under section 41 of the Internal Revenue Code, 1 7 except that for the alternative incremental credit such 1 8 amounts are for research conducted within this state. For 1 9 purposes of this section, "Internal Revenue Code" means the 1 10 Internal Revenue Code in effect on January 1,20002001. 1 11 Sec. 2. Section 15A.9, subsection 8, paragraph e, Code 1 12 2001, is amended to read as follows: 1 13 e. For the purposes of this subsection, "base amount", 1 14 "basic research payment", and "qualified research expense" 1 15 mean the same as defined for the federal credit for increasing 1 16 research activities under section 41 of the Internal Revenue 1 17 Code, except that for the alternative incremental credit such 1 18 amounts are for research conducted within this state within 1 19 the zone. For purposes of this subsection, "Internal Revenue 1 20 Code" means the Internal Revenue Code in effect on January 1, 1 2120002001. 1 22 Sec. 3. Section 422.3, subsection 5, Code 2001, is amended 1 23 to read as follows: 1 24 5. "Internal Revenue Code" means the Internal Revenue Code 1 25 of 1954, prior to the date of its redesignation as the 1 26 Internal Revenue Code of 1986 by the Tax Reform Act of 1986, 1 27 or means the Internal Revenue Code of 1986 as amended to and 1 28 including January 1,20002001, whichever is applicable. 1 29 Sec. 4. Section 422.7, subsection 6, Code 2001, is amended 1 30 by striking the subsection. 1 31 Sec. 5. Section 422.10, subsection 3, Code 2001, is 1 32 amended to read as follows: 1 33 3. For purposes of this section, "base amount", "basic 1 34 research payment", and "qualified research expense" mean the 1 35 same as defined for the federal credit for increasing research 2 1 activities under section 41 of the Internal Revenue Code, 2 2 except that for the alternative incremental credit such 2 3 amounts are for research conducted within this state. For 2 4 purposes of this section, "Internal Revenue Code" means the 2 5 Internal Revenue Code in effect on January 1,20002001. 2 6 Sec. 6. Section 422.13, subsection 1, paragraph b, Code 2 7 2001, is amended to read as follows: 2 8 b. The individual is claimed as a dependent on another 2 9 person's return and has net income offourfive thousand 2 10 dollars or more for the tax year from sources taxable under 2 11 this division. 2 12 Sec. 7. Section 422.33, subsection 5, paragraph d, Code 2 13 2001, is amended to read as follows: 2 14 d. For purposes of this subsection, "base amount", "basic 2 15 research payment", and "qualified research expense" mean the 2 16 same as defined for the federal credit for increasing research 2 17 activities under section 41 of the Internal Revenue Code, 2 18 except that for the alternative incremental credit such 2 19 amounts are for research conducted within this state. For 2 20 purposes of this subsection, "Internal Revenue Code" means the 2 21 Internal Revenue Code in effect on January 1,20002001. 2 22 Sec. 8. Section 422.85, Code 2001, is amended to read as 2 23 follows: 2 24 422.85 IMPOSITION OF ESTIMATED TAX. 2 25 A taxpayer subject to the tax imposed by sections 422.33 2 26 and 422.60 shall make payments of estimated tax for the 2 27 taxable year if the amount of tax payable, less credits, can 2 28 reasonably be expected to be more thanone thousandfive 2 29 hundred dollars for the taxable year. For purposes of this 2 30 division, "estimated tax" means the amount which the taxpayer 2 31 estimates to be the tax due and payable under division III or 2 32 V of this chapter for the taxable year. 2 33 Sec. 9. Section 422.86, Code 2001, is amended to read as 2 34 follows: 2 35 422.86 PAYMENT OF ESTIMATED TAX. 3 1 A taxpayer required to pay estimated tax under section 3 2 422.85 shall pay the estimated tax in accordance with the 3 3 following schedule: 3 4 1. If it is first determined that the estimated tax will 3 5 be greater thanone thousandfive hundred dollars on or before 3 6 the last day of the fourth month of the taxable year, the 3 7 estimated tax shall be paid in four equal installments. The 3 8 first installment shall be paid not later than the last day of 3 9 the fourth month of the taxable year. The second and third 3 10 installments shall be paid not later than the last day of the 3 11 sixth and ninth months of the taxable year, and the final 3 12 installment shall be paid on or before the last day of the 3 13 taxable year. 3 14 2. If it is first determined that the estimated tax will 3 15 be greater thanone thousandfive hundred dollars after the 3 16 last day of the fourth month but not later than the last day 3 17 of the sixth month of the taxable year, the estimated tax 3 18 shall be paid in three equal installments. The first 3 19 installment shall be paid not later than the last day of the 3 20 sixth month of the taxable year. The second installment shall 3 21 be paid on or before the last day of the ninth month of the 3 22 taxable year and the third installment shall be paid on or 3 23 before the last day of the taxable year. 3 24 3. If it is first determined that the estimated tax will 3 25 be greater thanone thousandfive hundred dollars after the 3 26 last day of the sixth month but not later than the last day of 3 27 the ninth month of the taxable year, the estimated tax shall 3 28 be paid in two equal installments. The first installment 3 29 shall be paid not later than the last day of the ninth month 3 30 and the second installment shall be paid on or before the last 3 31 day of the taxable year. 3 32 4. If it is first determined that the estimated tax will 3 33 be greater thanone thousandfive hundred dollars after the 3 34 last day of the ninth month of the taxable year, the estimated 3 35 tax shall be paid in full on or before the last day of the 4 1 taxable year. 4 2 5. If, after paying any installment of estimated tax, the 4 3 taxpayer makes a new estimate, the remaining installments 4 4 shall be ratably adjusted to reflect the increase or decrease 4 5 in the estimated tax. 4 6 Sec. 10. Section 422.88, subsections 2 and 3, Code 2001, 4 7 are amended to read as follows: 4 8 2. The amount of the underpayment shall be the excess of 4 9 the amount of the installment which would be required to be 4 10 paid if the estimated tax was equal toninetyone hundred 4 11 percent of the tax shown on the return of the taxpayer for the 4 12 taxable year over the amount of installments paid on or before 4 13 the date prescribed for payment. 4 14 3. If the taxpayer did not file a return during the 4 15 taxable year, the amount of the underpayment shall be equal to 4 16ninetyone hundred percent of the taxpayer's tax liability for 4 17 the taxable year over the amount of installments paid on or 4 18 before the date prescribed for payment. 4 19 Sec. 11. RETROACTIVE AND APPLICABILITY DATES. 4 20 1. Sections 1 through 5 and 7 of this Act apply 4 21 retroactively to January 1, 2000, for tax years beginning on 4 22 or after that date. 4 23 2. Sections 6, 8, 9, and 10 of this Act apply 4 24 retroactively to January 1, 2001, for tax years beginning on 4 25 or after that date. 4 26 Sec. 12. EFFECTIVE DATE. This Act, being deemed of 4 27 immediate importance, takes effect upon enactment. 4 28 EXPLANATION 4 29 This bill updates the references to the Internal Revenue 4 30 Code to make the federal income tax revisions enacted by 4 31 Congress in 2000 applicable for Iowa income tax purposes. 4 32 Code sections 15.335, 15A.9, 422.10, and 422.33 are amended 4 33 to update the Iowa Code references to the state research 4 34 activities credit for individuals, corporations, corporations 4 35 in economic development areas, and corporations in quality 5 1 jobs enterprise zones to include the 2000 federal changes in 5 2 the research activities credit. 5 3 The bill amends Code section 422.7 to strike a subsection 5 4 related to trusts, which refers to a section of the Internal 5 5 Revenue Code that was repealed. 5 6 The bill raises from $4,000 to $5,000 the minimum net 5 7 income that a dependent must earn in the tax year before the 5 8 dependent is required to file a state income tax return. 5 9 The bill amends Code sections 422.85 and 422.86 to lower 5 10 the threshold amount for making estimated tax payments for 5 11 corporations and financial institutions. The amount is 5 12 decreased from $1,000 to $500. The bill amends Code section 5 13 422.88 to increase the standard for the exception to the 5 14 penalty for making underpayments of estimated tax for 5 15 corporations and financial institutions from 90 percent of the 5 16 tax liability to 100 percent of the tax liability. 5 17 All of the provisions in the bill relating to updating 5 18 changes in the Internal Revenue Code and the repeal of the 5 19 subsection related to trusts are retroactively applicable to 5 20 January 1, 2000, for tax years beginning on or after that 5 21 date. The provision affecting dependents and the provisions 5 22 related to estimated tax payments for corporations and 5 23 financial institutions are retroactively applicable to January 5 24 1, 2001, for tax years beginning on or after that date. 5 25 The bill takes effect upon enactment. 5 26 LSB 1187HV 79 5 27 sc/pj/5
Text: HF00415 Text: HF00417 Text: HF00400 - HF00499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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