Text: HSB00505 Text: HSB00507 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 15.335, subsection 4, Code Supplement 1 2 2001, is 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 1,20012002. 1 11 Sec. 2. Section 15A.9, subsection 8, paragraph e, Code 1 12 Supplement 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 2120012002. 1 22 Sec. 3. Section 422.3, subsection 5, Code Supplement 2001, 1 23 is amended 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 1,20012002, whichever is applicable. 1 29 Sec. 4. Section 422.7, subsection 37, Code Supplement 1 30 2001, is amended by adding the following new unnumbered 1 31 paragraph: 1 32 NEW UNNUMBERED PARAGRAPH. The adjustment to net income 1 33 provided in this subsection is repealed for tax years 1 34 beginning on or after January 1, 2002. However, to the extent 1 35 that a taxpayer using the accrual method of accounting 2 1 reported the entire capital gain from the sale or exchange of 2 2 property on the Iowa return for the tax year beginning in the 2 3 2001 calendar year and the capital gain was reported on the 2 4 installment method on the federal income tax return, any 2 5 additional installment from the capital gain reported for 2 6 federal income tax purposes is not to be included in net 2 7 income in tax years beginning on or after January 1, 2002. 2 8 Sec. 5. Section 422.9, subsection 2, paragraph a, Code 2 9 Supplement 2001, is amended to read as follows: 2 10 a. Subtract the deduction for Iowa income taxes, including 2 11 the school district income surtax. 2 12 Sec. 6. Section 422.9, Code Supplement 2001, is amended by 2 13 adding the following new subsection: 2 14 NEW SUBSECTION. 7. In determining the amount of deduction 2 15 for federal income tax under subsection 1 or subsection 2, 2 16 paragraph "b", for tax years beginning in the 2002 calendar 2 17 year, the amount of the deduction for the tax year shall not 2 18 be adjusted by the amount of the rate reduction credit 2 19 received in the tax year to the extent that the credit is 2 20 attributable to the rate reduction credit provided pursuant to 2 21 the federal Economic Growth and Tax Relief Reconciliation Act 2 22 of 2001, Pub. L. No. 106-16, and the amount of such credit 2 23 shall not be taxable under this division. 2 24 Sec. 7. Section 422.10, subsection 3, Code Supplement 2 25 2001, is amended to read as follows: 2 26 3. For purposes of this section, "base amount", "basic 2 27 research payment", and "qualified research expense" mean the 2 28 same as defined for the federal credit for increasing research 2 29 activities under section 41 of the Internal Revenue Code, 2 30 except that for the alternative incremental credit such 2 31 amounts are for research conducted within this state. For 2 32 purposes of this section, "Internal Revenue Code" means the 2 33 Internal Revenue Code in effect on January 1,20012002. 2 34 Sec. 8. Section 422.21, unnumbered paragraph 7, Code 2001, 2 35 is amended to read as follows: 3 1 If married taxpayers file a joint return or file separately 3 2 on a combined return in accordance with rules prescribed by 3 3 the director, both spouses are jointly and severally liable 3 4 for the total tax due on the return, except when one spouse is 3 5 considered to be an innocent spouse under criteria established 3 6 pursuant to section6013(e)6015 of the Internal Revenue Code. 3 7 Sec. 9. Section 422.33, subsection 5, paragraph d, Code 3 8 Supplement 2001, is amended to read as follows: 3 9 d. For purposes of this subsection, "base amount", "basic 3 10 research payment", and "qualified research expense" mean the 3 11 same as defined for the federal credit for increasing research 3 12 activities under section 41 of the Internal Revenue Code, 3 13 except that for the alternative incremental credit such 3 14 amounts are for research conducted within this state. For 3 15 purposes of this subsection, "Internal Revenue Code" means the 3 16 Internal Revenue Code in effect on January 1,20012002. 3 17 Sec. 10. Sections 1, 2, 3, 7, and 9 apply retroactively to 3 18 January 1, 2001, for tax years beginning on or after that 3 19 date. 3 20 Sec. 11. Sections 4, 5, and 8 apply retroactively to 3 21 January 1, 2002, for tax years beginning on or after that 3 22 date. 3 23 Sec. 12. Section 6 applies retroactively to January 1, 3 24 2002, for tax years beginning in the 2002 calendar year. 3 25 Sec. 13. EFFECTIVE DATE. This Act, being deemed of 3 26 immediate importance, takes effect upon enactment. 3 27 EXPLANATION 3 28 This bill updates the references to the Internal Revenue 3 29 Code to make the federal income tax revisions enacted by 3 30 Congress in 2001 applicable for Iowa income tax purposes. 3 31 Code sections 15.335, 15A.9, 422.10, and 422.33 are amended to 3 32 update the Iowa Code references to the state research 3 33 activities credit for individuals, corporations, corporations 3 34 in economic development areas, and corporations in quality 3 35 jobs enterprise zones to include the 2001 federal changes in 4 1 the research activities credit. 4 2 The bill amends Code section 422.7 to provide that a 4 3 provision enacted in 2001 for capital gains from installment 4 4 sales for taxpayers on the accrual accounting basis is not 4 5 applicable for tax years beginning on or after January 1, 4 6 2002. This provision brings the Iowa Code into conformity 4 7 with the Internal Revenue Code. 4 8 The bill amends Code section 422.9 to eliminate the 4 9 itemized deduction for the school district income tax surtax 4 10 to clarify that the surtax is treated the same as the state 4 11 income tax adjustment. Code section 422.9 is also amended to 4 12 provide that an individual who receives a credit from the 4 13 federal rebate in 2002 will not have to include the amount of 4 14 the credit as part of the federal income tax deduction on the 4 15 2002 Iowa income tax return. 4 16 The bill amends Code section 422.21 to correct an erroneous 4 17 Code reference for the Iowa innocent spouse provision. 4 18 All of the provisions in the bill updating references to 4 19 the Internal Revenue Code are retroactively applicable to 4 20 January 1, 2001, for tax years beginning on or after that 4 21 date. The provision repealing the adjustment to net income 4 22 for capital gains from installment sales, the provision 4 23 clarifying the elimination of the itemized deduction for the 4 24 school district income surtax, and the provision correcting 4 25 the innocent spouse Code reference are retroactively 4 26 applicable to January 1, 2002, for tax years beginning on or 4 27 after that date. The provision relating to treatment of the 4 28 credit received from the federal rebate is retroactively 4 29 applicable to January 1, 2002, for tax years beginning in the 4 30 2002 calendar year. 4 31 The bill takes effect upon enactment. 4 32 LSB 5238DP 79 4 33 sc/cls/14
Text: HSB00505 Text: HSB00507 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
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