Text: HF00673 Text: HF00675 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 HOUSE FILE 674 1 2 1 3 AN ACT 1 4 RELATING TO INCOME TAX DEDUCTIONS AND EXEMPTIONS FOR MILITARY 1 5 SERVICE PERSONNEL AND ORGANIZATIONS, AND INCLUDING EFFECTIVE 1 6 AND APPLICABILITY DATE PROVISIONS. 1 7 1 8 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 1 9 1 10 Section 1. Section 12D.5, subsection 2, paragraph a, Code 1 11 2003, is amended by adding the following new subparagraph: 1 12 NEW SUBPARAGRAPH. (4) Attendance of the designated 1 13 beneficiary at the United States military academy, the United 1 14 States naval academy, the United States air force academy, the 1 15 United States coast guard academy, or the United States 1 16 merchant marine academy, to the extent that the amount of the 1 17 payment or distribution does not exceed the costs of advanced 1 18 education, as defined by 10 U.S.C. } 2005(e)(3), as in effect 1 19 on the date of the enactment of this subparagraph, 1 20 attributable to such attendance. 1 21 Sec. 2. Section 12D.9, subsection 1, paragraph f, Code 1 22 2003, is amended to read as follows: 1 23 f. Pursuant to section 12D.5, subsection 1, penalties are 1 24 provided on refunds of earnings which are not used for 1 25 qualified higher education expenses of the beneficiary, made 1 26 on account of the death or disability of the designated 1 27 beneficiary,ormade due to scholarship, allowance, or payment 1 28 receipt as provided in section 529(b)(3) of the Internal 1 29 Revenue Code, or made in the amount of the costs for 1 30 attendance at the United States military, naval, air force, 1 31 coast guard, or merchant marine academy. 1 32 Sec. 3. Section 29A.28, Code 2003, is amended to read as 1 33 follows: 1 34 29A.28 LEAVE OF ABSENCE OF CIVIL EMPLOYEES. 1 35 1. All officers and employees of the state, or a 2 1 subdivision thereof, or a municipality other than employees 2 2 employed temporarily for six months or less, who are members 2 3 of the national guard, organized reserves or any component 2 4 part of the military, naval, or air forces or nurse corps of 2 5 this state or nation, or who are or may be otherwise inducted 2 6 into the military service of this state or of the United 2 7 States, shall, when ordered by proper authority to state 2 8 active duty, active state service or federal service, be 2 9 entitled to a leave of absence from such civil employment for 2 10 the period of state active duty, active state service, or 2 11 federal service, without loss of status or efficiency rating, 2 12 and without loss of pay during the first thirty days of such 2 13 leave of absence. Where state active duty, active state 2 14 service, or federal service is for a period less than thirty 2 15 days, a leave of absence under this section shall only be 2 16 required for those days that the civil employee would normally 2 17 perform services for the state, subdivision of the state, or a 2 18 municipality. 2 19 2.The proper appointing authority may make a temporary2 20appointment toA state agency, subdivision of the state, or 2 21 municipality may hire a temporary employee to fill any vacancy 2 22 created by such leave of absence. Temporary employees hired 2 23 to fill a vacancy created by a leave of absence under this 2 24 section shall not count against the number of full-time 2 25 equivalent positions authorized for the state agency, 2 26 subdivision of the state, or municipality. 2 27 3. Upon returning from a leave of absence under this 2 28 section, an employee shall be entitled to return to the same 2 29 position and classification held by the employee at the time 2 30 of entry onto state active duty, active state service, or 2 31 federal service or to the position and classification that the 2 32 employee would have been entitled to if the continuous civil 2 33 service of the employee had not been interrupted by state 2 34 active duty, active state service, or federal service. Under 2 35 this subsection, "position" includes the geographical location 3 1 of the position. 3 2 Sec. 4. Section 35.1, subsection 2, paragraph b, Code 3 3 2003, is amended by adding the following new subparagraph: 3 4 NEW SUBPARAGRAPH. (5) Former members of the armed forces 3 5 of the United States if any portion of their term of 3 6 enlistment would have occurred within the time period 3 7 specified in paragraph "a", subparagraph (9), but who instead 3 8 opted to serve five years in the reserve forces of the United 3 9 States, as allowed by federal law, and who were discharged 3 10 under honorable conditions. 3 11 Sec. 5. Section 422.7, Code 2003, is amended by adding the 3 12 following new subsections: 3 13 NEW SUBSECTION. 39. Subtract, to the extent included, 3 14 active duty pay received by a person in the national guard or 3 15 armed forces military reserve for service performed on or 3 16 after January 1, 2003, pursuant to military orders related to 3 17 Operation Iraqi Freedom, Operation Noble Eagle, and Operation 3 18 Enduring Freedom. 3 19 NEW SUBSECTION. 40. Subtract, not to exceed one thousand 3 20 five hundred dollars, the overnight transportation, meals, and 3 21 lodging expenses, to the extent not reimbursed, incurred by 3 22 the taxpayer for travel away from home of more than one 3 23 hundred miles for the performance of services by the taxpayer 3 24 as a member of the national guard or armed forces military 3 25 reserve. 3 26 NEW SUBSECTION. 41. Subtract, to the extent included, 3 27 military student loan repayments received by the taxpayer 3 28 serving on active duty in the national guard or armed forces 3 29 military reserve or on active duty status in the armed forces. 3 30 Sec. 6. Section 422.7, Code 2003, is amended by adding the 3 31 following new subsection: 3 32 NEW SUBSECTION. 42. Subtract, to the extent not otherwise 3 33 excluded, the amount of the death gratuity payable under 10 3 34 U.S.C. }} 1475-1491 for deaths occurring after September 10, 3 35 2001. 4 1 Sec. 7. Section 422.9, subsection 2, Code 2003, is amended 4 2 by adding the following new paragraph: 4 3 NEW PARAGRAPH. j. If the taxpayer has a deduction for 4 4 miscellaneous expenses under section 67 of the Internal 4 5 Revenue Code, the taxpayer shall recompute for the purposes of 4 6 this subsection the amount of the deduction under section 67 4 7 by excluding from the expenses, the amount subtracted under 4 8 section 422.7, subsection 40. 4 9 Sec. 8. Section 422.21, unnumbered paragraph 2, Code 2003, 4 10 is amended to read as follows: 4 11 An individual in the armed forces of the United States 4 12 serving in an area designated by the president of the United 4 13 States or the United States Congress as a combat zone or as a 4 14 qualified hazardous duty area, or deployed outside the United 4 15 States away from the individual's permanent duty station while 4 16 participating in an operation designated by the United States 4 17 secretary of defense as a contingency operation as defined in 4 18 10 U.S.C. } 101(a)(13), or which became such a contingency 4 19 operation by the operation of law, or an individual serving in 4 20 support of those forces, is allowed the same additional time 4 21 period after leaving the combat zone or the qualified 4 22 hazardous duty area, or ceasing to participate in such 4 23 contingency operation, or after a period of continuous 4 24 hospitalization, to file a state income tax return or perform 4 25 other acts related to the department, as would constitute 4 26 timely filing of the return or timely performance of other 4 27 acts described in section 7508(a) of the Internal Revenue 4 28 Code. For the purposes of this paragraph, "other acts related 4 29 to the department" includes filing claims for refund for any 4 30 tax administered by the department, making tax payments other 4 31 than withholding payments, filing appeals on the tax matters, 4 32 filing other tax returns, and performing other acts described 4 33 in the department's rules. The additional time period allowed 4 34 applies to the spouse of the individual described in this 4 35 paragraph to the extent the spouse files jointly or separately 5 1 on the combined return form with the individual or when the 5 2 spouse is a party with the individual to any matter for which 5 3 the additional time period is allowed. 5 4 Sec. 9. Section 422.34, subsection 2, Code 2003, is 5 5 amended by adding the following new unnumbered paragraph: 5 6 NEW UNNUMBERED PARAGRAPH. An organization that would have 5 7 qualified as an organization exempt from federal income tax 5 8 under section 501(c)(19) of the Internal Revenue Code but for 5 9 the fact that the requirement that substantially all of the 5 10 members who are not past or present members of the United 5 11 States armed forces is not met because such members include 5 12 ancestors or lineal descendants, shall be considered for 5 13 purposes of the exemption from taxation under this division as 5 14 an organization exempt from federal income tax under section 5 15 501(c)(19) of the Internal Revenue Code. 5 16 Sec. 10. STATE FUNDING. The military service tax 5 17 exemptions and credits provided pursuant to the amendment to 5 18 section 35.1 of this Act shall be funded pursuant to chapter 5 19 426A and section 25B.7, subsection 2. 5 20 Sec. 11. EFFECTIVE AND APPLICABILITY DATES. 5 21 1. Except as provided in subsections 2, 3, 4, 5, and 6, 5 22 this Act, being deemed of immediate importance, takes effect 5 23 upon enactment and applies retroactively to January 1, 2003, 5 24 for tax years beginning on or after that date. 5 25 2. Section 3 of this Act, being deemed of immediate 5 26 importance, takes effect upon enactment and applies 5 27 retroactively to January 1, 2003. 5 28 3. Section 4 of this Act amending section 35.1, being 5 29 deemed of immediate importance, takes effect upon enactment. 5 30 4. Section 6 of this Act, amending section 422.7 to allow 5 31 for the subtraction of additional death gratuity benefits, 5 32 being deemed of immediate importance, takes effect upon 5 33 enactment and applies retroactively to tax years ending after 5 34 September 10, 2001. 5 35 5. Section 8 of this Act, amending section 422.21, being 6 1 deemed of immediate importance, takes effect upon enactment 6 2 and applies to any period for performing an act that has not 6 3 expired before the effective date. 6 4 6. Section 9 of this Act, amending section 422.34, being 6 5 deemed of immediate importance, takes effect upon enactment 6 6 and applies to tax years beginning after the effective date. 6 7 6 8 6 9 6 10 CHRISTOPHER C. RANTS 6 11 Speaker of the House 6 12 6 13 6 14 6 15 MARY E. KRAMER 6 16 President of the Senate 6 17 6 18 I hereby certify that this bill originated in the House and 6 19 is known as House File 674, Eightieth General Assembly. 6 20 6 21 6 22 6 23 MARGARET THOMSON 6 24 Chief Clerk of the House 6 25 Approved , 2003 6 26 6 27 6 28 6 29 THOMAS J. VILSACK 6 30 Governor
Text: HF00673 Text: HF00675 Text: HF00600 - HF00699 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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