Text: HF02115 Text: HF02117 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 2116 1 2 1 3 AN ACT 1 4 UPDATING THE IOWA CODE REFERENCES TO THE INTERNAL REVENUE 1 5 CODE, REPEALING AN ADJUSTMENT TO NET INCOME FOR CAPITAL 1 6 GAINS FROM INSTALLMENT SALES, RELATING TO RECIPROCAL 1 7 INCOME TAX AGREEMENTS WITH OTHER STATES, PROVIDING THAT 1 8 REFUNDS FROM THE FEDERAL REBATE ARE NOT TAXABLE, 1 9 CORRECTING A REFERENCE IN THE INNOCENT SPOUSE STATUTE, 1 10 AND PROVIDING RETROACTIVE APPLICABILITY DATES AND AN 1 11 EFFECTIVE DATE. 1 12 1 13 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 14 1 15 Section 1. Section 15.335, subsection 4, Code Supplement 1 16 2001, is amended to read as follows: 1 17 4. For purposes of this section, "base amount", "basic 1 18 research payment", and "qualified research expense" mean the 1 19 same as defined for the federal credit for increasing research 1 20 activities under section 41 of the Internal Revenue Code, 1 21 except that for the alternative incremental credit such 1 22 amounts are for research conducted within this state. For 1 23 purposes of this section, "Internal Revenue Code" means the 1 24 Internal Revenue Code in effect on January 1,20012002. 1 25 Sec. 2. Section 15A.9, subsection 8, paragraph e, Code 1 26 Supplement 2001, is amended to read as follows: 1 27 e. For the purposes of this subsection, "base amount", 1 28 "basic research payment", and "qualified research expense" 1 29 mean the same as defined for the federal credit for increasing 1 30 research activities under section 41 of the Internal Revenue 1 31 Code, except that for the alternative incremental credit such 1 32 amounts are for research conducted within this state within 1 33 the zone. For purposes of this subsection, "Internal Revenue 1 34 Code" means the Internal Revenue Code in effect on January 1, 1 3520012002. 2 1 Sec. 3. Section 422.3, subsection 5, Code Supplement 2001, 2 2 is amended to read as follows: 2 3 5. "Internal Revenue Code" means the Internal Revenue Code 2 4 of 1954, prior to the date of its redesignation as the 2 5 Internal Revenue Code of 1986 by the Tax Reform Act of 1986, 2 6 or means the Internal Revenue Code of 1986 as amended to and 2 7 including January131,20012002, whichever is applicable. 2 8 Sec. 4. Section 422.7, subsection 37, Code Supplement 2 9 2001, is amended by adding the following new unnumbered 2 10 paragraph: 2 11 NEW UNNUMBERED PARAGRAPH. The adjustment to net income 2 12 provided in this subsection is repealed for tax years 2 13 beginning on or after January 1, 2002. However, to the extent 2 14 that a taxpayer using the accrual method of accounting 2 15 reported the entire capital gain from the sale or exchange of 2 16 property on the Iowa return for the tax year beginning in the 2 17 2001 calendar year and the capital gain was reported on the 2 18 installment method on the federal income tax return, any 2 19 additional installment from the capital gain reported for 2 20 federal income tax purposes is not to be included in net 2 21 income in tax years beginning on or after January 1, 2002. 2 22 Sec. 5. Section 422.8, subsection 5, Code 2001, is amended 2 23 to read as follows: 2 24 5. The director may, in accordance with the provisions of 2 25 this subsection, and when cost-efficient, administratively 2 26 feasible, and of mutual benefit to both states, enter into 2 27 reciprocal agreements with tax administration agencies of 2 28 other states to further tax administration and eliminate 2 29 duplicate withholding by exempting from Iowa taxation income 2 30 earned from personal services in Iowa by residents of another 2 31 state, if the other state provides a tax exemption for the 2 32 same type of income earned from personal services by Iowa 2 33 residents in the other state. For purposes of this 2 34 subsection, "income earned from personal services" means 2 35 wages, salaries, commissions, and tips, and earned income from 3 1 other sources. This subsection does not authorize the 3 2 department to withhold taxes on deferred compensation 3 3 payments, pension distributions, and annuity payments when 3 4 paid to a nonresident of the state of Iowa. All the terms of 3 5 the agreements shall be described in the rules adopted by the 3 6 department. 3 7 A reciprocal agreement entered into on or after the 3 8 effective date of this Act with a tax administration agency of 3 9 another state shall not take effect until such agreement has 3 10 been authorized by a constitutional majority of each house of 3 11 the general assembly and approved by the governor. A 3 12 reciprocal agreement in effect on or after January 1, 2002, 3 13 shall not be terminated by the state of Iowa unless the 3 14 termination has been authorized by a constitutional majority 3 15 of each house of the general assembly and approved by the 3 16 governor. An amendment to an existing reciprocal agreement 3 17 does not constitute a new agreement. 3 18 Sec. 6. Section 422.9, Code Supplement 2001, is amended by 3 19 adding the following new subsection: 3 20 NEW SUBSECTION. 7. In determining the amount of deduction 3 21 for federal income tax under subsection 1 or subsection 2, 3 22 paragraph "b", for tax years beginning in the 2002 calendar 3 23 year, the amount of the deduction for the tax year shall not 3 24 be adjusted by the amount of the rate reduction credit 3 25 received in the tax year to the extent that the credit is 3 26 attributable to the rate reduction credit provided pursuant to 3 27 the federal Economic Growth and Tax Relief Reconciliation Act 3 28 of 2001, Pub. L. No. 106-16, and the amount of such credit 3 29 shall not be taxable under this division. 3 30 Sec. 7. Section 422.10, subsection 3, Code Supplement 3 31 2001, is amended to read as follows: 3 32 3. For purposes of this section, "base amount", "basic 3 33 research payment", and "qualified research expense" mean the 3 34 same as defined for the federal credit for increasing research 3 35 activities under section 41 of the Internal Revenue Code, 4 1 except that for the alternative incremental credit such 4 2 amounts are for research conducted within this state. For 4 3 purposes of this section, "Internal Revenue Code" means the 4 4 Internal Revenue Code in effect on January 1,20012002. 4 5 Sec. 8. Section 422.21, unnumbered paragraph 7, Code 2001, 4 6 is amended to read as follows: 4 7 If married taxpayers file a joint return or file separately 4 8 on a combined return in accordance with rules prescribed by 4 9 the director, both spouses are jointly and severally liable 4 10 for the total tax due on the return, except when one spouse is 4 11 considered to be an innocent spouse under criteria established 4 12 pursuant to section6013(e)6015 of the Internal Revenue Code. 4 13 Sec. 9. Section 422.33, subsection 5, paragraph d, Code 4 14 Supplement 2001, is amended to read as follows: 4 15 d. For purposes of this subsection, "base amount", "basic 4 16 research payment", and "qualified research expense" mean the 4 17 same as defined for the federal credit for increasing research 4 18 activities under section 41 of the Internal Revenue Code, 4 19 except that for the alternative incremental credit such 4 20 amounts are for research conducted within this state. For 4 21 purposes of this subsection, "Internal Revenue Code" means the 4 22 Internal Revenue Code in effect on January 1,20012002. 4 23 Sec. 10. Sections 1, 2, 3, 7, and 9 apply retroactively to 4 24 January 1, 2001, for tax years beginning on or after that 4 25 date. 4 26 Sec. 11. Sections 4 and 8 apply retroactively to January 4 27 1, 2002, for tax years beginning on or after that date. 4 28 Sec. 12. The termination provisions of section 5 of this 4 29 Act apply retroactively to the termination of reciprocal 4 30 agreements in effect on or after January 1, 2002. 4 31 Sec. 13. Section 6 applies retroactively to January 1, 4 32 2002, for tax years beginning in the 2002 calendar year. 4 33 Sec. 14. EFFECTIVE DATE. This Act, being deemed of 4 34 immediate importance, takes effect upon enactment. 4 35 5 1 5 2 5 3 BRENT SIEGRIST 5 4 Speaker of the House 5 5 5 6 5 7 5 8 MARY E. KRAMER 5 9 President of the Senate 5 10 5 11 I hereby certify that this bill originated in the House and 5 12 is known as House File 2116, Seventy-ninth General Assembly. 5 13 5 14 5 15 5 16 MARGARET THOMSON 5 17 Chief Clerk of the House 5 18 Approved , 2002 5 19 5 20 5 21 5 22 THOMAS J. VILSACK 5 23 Governor
Text: HF02115 Text: HF02117 Text: HF02100 - HF02199 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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