Text: HF02580 Text: HF02582 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
4
6 AN ACT
10 CONCERNING REGULATORY, TAXATION, AND STATUTORY REQUIREMENTS
12 AFFECTING INDIVIDUALS AND BUSINESS RELATING TO ECONOMIC
14 DEVELOPMENT, WORKERS' COMPENSATION, FINANCIAL SERVICES,
16 UNEMPLOYMENT COMPENSATION EMPLOYER SURCHARGES, INCOME
18 TAXATION BONUS DEPRECIATION AND EXPENSING ALLOWANCES,
20 AND CIVIL ACTION APPEAL BONDS, AND INCLUDING EFFECTIVE DATE,
22 APPLICABILITY, AND RETROACTIVE APPLICABILITY PROVISIONS.
24
26 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
28
36 DIVISION I
40 LEGISLATIVE FINDINGS
60 Section 1. LEGISLATIVE FINDINGS. It is the finding of the
70 general assembly that the recent Iowa supreme court decision
80 of Rants and Iverson v. Vilsack, No. 60/03=1948, June 16,
90 2004, has invalidated the proper enactment of provisions
100 contained in 2003 Iowa Acts, First Extraordinary Session,
110 chapter 1 (House File 692). It is the intent of the general
120 assembly to reenact and reaffirm certain provisions of House
130 File 692 that were published in the 2003 Iowa Code Supplement,
140 including provisions that were subsequently amended in the
150 2004 regular session of the Eightieth General Assembly and
160 validate contracts entered into in reliance on the enactment
170 of provisions published in the 2003 Code Supplement.
180 Sec. 2. EFFECTIVE DATE. This division of this Act, being
190 deemed of immediate importance, takes effect upon enactment.
210 DIVISION II
220 ENDOW IOWA GRANTS
240 Sec. 3. The following provisions, as published in Iowa
250 Code Supplement 2003, pertaining to endow Iowa grants, are
260 reaffirmed and reenacted:
270 1. Section 15E.301.
280 2. Section 15E.302.
290 3. Section 15E.303.
300 4. Section 15E.304.
310 5. Section 15E.306.
320 Sec. 4. EFFECTIVE DATE AND RETROACTIVE APPLICABILITY
330 PROVISIONS. This division of this Act, being deemed of
340 immediate importance, takes effect upon enactment, and is
350 retroactively applicable to January 1, 2003, for tax years
360 beginning on or after that date.
380 DIVISION III
390 CIVIL ACTION APPEAL BONDS
410 Sec. 5. Section 625A.9, as published in Iowa Code
420 Supplement 2003, pertaining to supersedeas bonds, is
430 reaffirmed and reenacted.
440 Sec. 6. Section 625A.9, subsection 2, Code Supplement
450 2003, as reaffirmed and reenacted by this division of this
460 Act, is amended to read as follows:
470 2. a. If Except as provided in paragraph "b", if the
480 judgment or order appealed from is for money, such bond shall
490 not exceed one hundred ten percent of the amount of the money
500 judgment.
510 The court may set a bond in an amount in excess of one
520 hundred ten percent of the amount of the money judgment upon
530 making specific findings justifying such an amount, and in
540 doing so, shall consider, but shall not be limited to
550 consideration of, the following criteria:
560 (1) The availability and cost of the bond or other form of
570 adequate security.
580 (2) The assets of the judgment debtor and of the judgment
590 debtor's insurer or indemnitor, if any.
600 (3) The potential adverse effects of the bond on the
610 judgment debtor, including, but not limited to, the potential
620 adverse effects on the judgment debtor's employees, financial
630 stability, and business operations.
640 (4) The potential adverse effects of the bond on the
650 judgment creditor and third parties, including public
660 entities.
670 (5) In a class action suit, the adequacy of the bond to
680 compensate all members of the class.
690 b. Notwithstanding paragraph "a", in no case shall a bond
700 exceed one hundred million dollars, regardless of the value of
710 the money judgment. This limitation shall not apply in cases
720 where the court finds that the defendant intentionally
730 dissipated the defendant's assets outside the ordinary course
740 of business for the purpose of evading payment of the
750 judgment.
760 Sec. 7. 2004 Iowa Acts, Senate File 2306, is repealed.
770 Sec. 8. EFFECTIVE DATE AND RETROACTIVE APPLICABILITY
780 PROVISIONS.
790 1. The section of this division of this Act reaffirming
800 and reenacting section 625A.9, being deemed of immediate
810 importance, takes effect upon enactment, and applies
820 retroactively to July 1, 2003.
830 2. The section of this division of this Act amending
840 section 625A.9, as reaffirmed and reenacted by this division
850 of this Act, being deemed of immediate importance, takes
860 effect upon enactment of this Act, and applies retroactively
870 to cases pending and filed on or after April 20, 2004, and
880 through June 15, 2004, and to cases pending or filed on or
890 after June 16, 2004.
900 3. The section of this division of this Act repealing 2004
910 Iowa Acts, Senate File 2306, being deemed of immediate
920 importance, takes effect upon enactment.
930 4. This section of this division of this Act, being deemed
940 of immediate importance, takes effect upon enactment.
960 DIVISION IV
970 WORKERS' COMPENSATION
990 Sec. 9. Section 85.27, subsection 4, Code 2003, is amended
1000 to read as follows:
1010 4. For purposes of this section, the employer is obliged
1020 to furnish reasonable services and supplies to treat an
1030 injured employee, and has the right to choose the care. If
1040 the employer chooses the care, the employer shall hold the
1050 employee harmless for the cost of care until the employer
1060 notifies the employee that the employer is no longer
1070 authorizing all or any part of the care and the reason for the
1080 change in authorization. An employer is not liable for the
1090 cost of care that the employer arranges in response to a
1100 sudden emergency if the employee's condition, for which care
1110 was arranged, is not related to the employment. The treatment
1120 must be offered promptly and be reasonably suited to treat the
1130 injury without undue inconvenience to the employee. If the
1140 employee has reason to be dissatisfied with the care offered,
1150 the employee should communicate the basis of such
1160 dissatisfaction to the employer, in writing if requested,
1170 following which the employer and the employee may agree to
1180 alternate care reasonably suited to treat the injury. If the
1190 employer and employee cannot agree on such alternate care, the
1200 commissioner may, upon application and reasonable proofs of
1210 the necessity therefor, allow and order other care. In an
1220 emergency, the employee may choose the employee's care at the
1230 employer's expense, provided the employer or the employer's
1240 agent cannot be reached immediately. An application made
1250 under this subsection shall be considered an original
1260 proceeding for purposes of commencement and contested case
1270 proceedings under section 85.26. The hearing shall be
1280 conducted pursuant to chapter 17A. Before a hearing is
1290 scheduled, the parties may choose a telephone hearing or an
1300 in=person hearing. A request for an in=person hearing shall
1310 be approved unless the in=person hearing would be impractical
1320 because of the distance between the parties to the hearing.
1330 The workers' compensation commissioner shall issue a decision
1340 within ten working days of receipt of an application for
1350 alternate care made pursuant to a telephone hearing or within
1360 fourteen working days of receipt of an application for
1370 alternate care made pursuant to an in=person hearing. The
1380 employer shall notify an injured employee of the employee's
1390 ability to contest the employer's choice of care pursuant to
1400 this subsection.
1410 Sec. 10. Section 85.34, subsection 2, paragraph u, Code
1420 2003, is amended to read as follows:
1430 u. In all cases of permanent partial disability other than
1440 those hereinabove described or referred to in paragraphs "a"
1450 through "t" hereof, the compensation shall be paid during the
1460 number of weeks in relation to five hundred weeks as the
1470 reduction in the employee's earning capacity caused by the
1480 disability bears in relation to the body of the injured
1490 earning capacity that the employee as a whole possessed when
1500 the injury occurred.
1510 Sec. 11. Section 85.34, Code 2003, is amended by adding
1520 the following new subsection:
1530 NEW SUBSECTION. 7. SUCCESSIVE DISABILITIES.
1540 a. An employer is fully liable for compensating all of an
1550 employee's disability that arises out of and in the course of
1560 the employee's employment with the employer. An employer is
1570 not liable for compensating an employee's preexisting
1580 disability that arose out of and in the course of employment
1590 with a different employer or from causes unrelated to
1600 employment.
1610 b. If an injured employee has a preexisting disability
1620 that was caused by a prior injury arising out of and in the
1630 course of employment with the same employer, and the
1640 preexisting disability was compensable under the same
1650 paragraph of section 85.34, subsection 2, as the employee's
1660 present injury, the employer is liable for the combined
1670 disability that is caused by the injuries, measured in
1680 relation to the employee's condition immediately prior to the
1690 first injury. In this instance, the employer's liability for
1700 the combined disability shall be considered to be already
1710 partially satisfied to the extent of the percentage of
1720 disability for which the employee was previously compensated
1730 by the employer.
1740 If, however, an employer is liable to an employee for a
1750 combined disability that is payable under section 85.34,
1760 subsection 2, paragraph "u", and the employee has a
1770 preexisting disability that causes the employee's earnings to
1780 be less at the time of the present injury than if the prior
1790 injury had not occurred, the employer's liability for the
1800 combined disability shall be considered to be already
1810 partially satisfied to the extent of the percentage of
1820 disability for which the employee was previously compensated
1830 by the employer minus the percentage that the employee's
1840 earnings are less at the time of the present injury than if
1850 the prior injury had not occurred.
1860 c. A successor employer shall be considered to be the same
1870 employer if the employee became part of the successor
1880 employer's workforce through a merger, purchase, or other
1890 transaction that assumes the employee into the successor
1900 employer's workforce without substantially changing the nature
1910 of the employee's employment.
1920 Sec. 12. Section 85.36, subsection 9, paragraph c, Code
1930 2003, is amended by striking the paragraph.
1940 Sec. 13. Section 85.70, Code 2003, is amended to read as
1950 follows:
1960 85.70 ADDITIONAL PAYMENT FOR ATTENDANCE.
1970 An employee who has sustained an injury resulting in
1980 permanent partial or permanent total disability, for which
1990 compensation is payable under this chapter, and who cannot
2000 return to gainful employment because of such disability, shall
2010 upon application to and approval by the workers' compensation
2020 commissioner be entitled to a twenty=dollar one hundred dollar
2030 weekly payment from the employer in addition to any other
2040 benefit payments, during each full week in which the employee
2050 is actively participating in a vocational rehabilitation
2060 program recognized by the vocational rehabilitation services
2070 division of the department of education. The workers'
2080 compensation commissioner's approval of such application for
2090 payment may be given only after a careful evaluation of
2100 available facts, and after consultation with the employer or
2110 the employer's representative. Judicial review of the
2120 decision of the workers' compensation commissioner may be
2130 obtained in accordance with the terms of the Iowa
2140 administrative procedure Act and in section 86.26. Such
2150 additional benefit payment shall be paid for a period not to
2160 exceed thirteen consecutive weeks except that the workers'
2170 compensation commissioner may extend the period of payment not
2180 to exceed an additional thirteen weeks if the circumstances
2190 indicate that a continuation of training will in fact
2200 accomplish rehabilitation.
2210 Sec. 14. Section 86.12, as published in Iowa Code
2220 Supplement 2003, is reaffirmed and reenacted.
2230 Sec. 15. Section 86.13A, as published in Iowa Code
2240 Supplement 2003, is reaffirmed and reenacted.
2250 Sec. 16. Section 86.13A, unnumbered paragraph 2, Code
2260 Supplement 2003, as reaffirmed and reenacted by this Act, is
2270 amended to read as follows:
2280 If during any fiscal year commencing after June 30, 2005
2290 2006, the general business practices of an employer or insurer
2300 result in the delay of the commencement of voluntary weekly
2310 compensation payments after the date specified in section
2320 85.30 more frequently and for a longer number of days than the
2330 average number of days for the entire group of employers or
2340 insurers, the commissioner may impose an assessment on the
2350 employer or insurer payable to the second injury fund created
2360 in section 85.66. The amount of the assessment shall be ten
2370 dollars, multiplied by the average number of days that weekly
2380 compensation payments were delayed after the date specified in
2390 section 85.30, and multiplied by the number of injuries the
2400 employer or insurer reported during the fiscal year.
2410 Notwithstanding the foregoing, an assessment shall not be
2420 imposed if the employer or insurer commenced voluntary weekly
2430 compensation benefits within the time specified in section
2440 85.30 for more than seventy=five percent of the injuries
2450 reported by the employer or insurer.
2460 Sec. 17. Section 85.55, Code 2003, is repealed.
2470 Sec. 18. EFFECTIVE DATE AND APPLICABILITY PROVISIONS. The
2480 sections of this division of this Act amending sections 85.27,
2490 85.34, 85.36, and 85.70, and repealing section 85.55, being
2500 deemed of immediate importance, take effect upon enactment and
2510 apply to injuries occurring on or after that date.
2520 Sec. 19. EFFECTIVE DATE AND RETROACTIVE APPLICABILITY
2530 PROVISIONS. The sections of this division of this Act
2540 reaffirming and reenacting sections 86.12 and 86.13A and the
2550 section of this division of this Act amending section 86.13A
2560 as reaffirmed and reenacted, being deemed of immediate
2570 importance, take effect upon enactment and are retroactively
2580 applicable to injuries occurring on or after July 1, 2003.
2590 Sec. 20. LEGISLATIVE INTENT. It is the intent of the
2600 general assembly that this division of this Act will prevent
2610 all double recoveries and all double reductions in workers'
2620 compensation benefits for permanent partial disability. This
2630 division modifies the fresh start and full responsibility
2640 rules of law announced by the Iowa supreme court in a series
2650 of judicial precedents.
2660 The general assembly recognizes that the amount of
2670 compensation a person receives for disability is directly
2680 related to the person's earnings at the time of injury. The
2690 competitive labor market determines the value of a person's
2700 earning capacity through a strong correlation with the level
2710 of earnings a person can achieve in the competitive labor
2720 market. The market reevaluates a person as a working unit
2730 each time the person competes in the competitive labor market,
2740 causing a fresh start with each change of employment. The
2750 market's determination effectively apportions any disability
2760 through a reduced level of earnings. The market does not
2770 reevaluate an employee's earning capacity while the employee
2780 remains employed by the same employer.
2790 The general assembly intends that an employer shall fully
2800 compensate all of an injured employee's disability that is
2810 caused by work=related injuries with the employer without
2820 compensating the same disability more than once. This
2830 division of this Act creates a formula that applies disability
2840 payments made toward satisfaction of the combined disability
2850 that the employer is liable for compensating, while taking
2860 into account the impact of the employee's earnings on the
2870 amount of compensation to be ultimately paid for the
2880 disability.
2890 The general assembly does not intend this division of this
2900 Act to change the character of any disability from scheduled
2910 to unscheduled or vice versa or to combine disabilities that
2920 are not otherwise combined under law existing on the effective
2930 date of this section of this division of this Act.
2940 Combination of successive scheduled disabilities in section
2950 85.34, subsection 7, as enacted in this division of this Act,
2960 is limited to disabilities affecting the same member, such as
2970 successive disabilities to the right arm. A disability to the
2980 left arm that is followed by a disability to the right arm is
2990 governed by section 85.64 and is not a successive disability
3000 under this division. This division does not alter benefits
3010 under the second injury fund, benefits for permanent total
3020 disability under section 85.34, subsection 3, the method of
3030 determining the degree of unscheduled permanent partial
3040 disability, the compensable character of aggravation injuries,
3050 or an employer's right to choose the care an injured employee
3060 receives, expand the fresh start rule to scheduled
3070 disabilities, or change existing law in any way that is not
3080 expressly provided in this division.
3090 The general assembly intends that changes in the identity
3100 of the employer that do not require the employee to reenter
3110 the competitive labor market will be treated as if the
3120 employee remained employed by the same employer.
3130 Sec. 21. EFFECTIVE DATE. Unless otherwise provided, this
3140 division of this Act, being deemed of immediate importance,
3150 takes effect upon enactment.
3170 DIVISION V
3180 FINANCIAL SERVICES
3200 Sec. 22. The following provisions, as published in Iowa
3210 Code Supplement 2003, pertaining to financial services, are
3220 reaffirmed and reenacted:
3230 1. Section 537.2502, subsections 3 and 6.
3240 2. Section 537.2601, subsection 1.
3250 Sec. 23. EFFECTIVE DATE AND RETROACTIVE APPLICABILITY
3260 PROVISIONS. This division of this Act, being deemed of
3270 immediate importance, takes effect upon enactment, and is
3280 retroactively applicable to July 1, 2003.
3300 DIVISION VI
3310 LOAN AND CREDIT GUARANTEE PROGRAM
3330 Sec. 24. The following provisions, as published in Iowa
3340 Code Supplement 2003, pertaining to the economic development
3350 loan and credit guarantee program, are reaffirmed and
3360 reenacted:
3370 1. Section 15E.221.
3380 2. Section 15E.222.
3390 3. Section 15E.223.
3400 4. Section 15E.224.
3410 5. Section 15E.225.
3420 Sec. 25. Section 15E.223, subsection 4, Code Supplement
3430 2003, as reaffirmed and reenacted by this division of this
3440 Act, is amended to read as follows:
3450 4. "Targeted industry business" means an existing or
3460 proposed business entity, including an emerging small business
3470 or qualified business which is operated for profit and which
3480 has a primary business purpose of doing business in at least
3490 one of the targeted industries designated by the department
3500 which include life sciences, software and information
3510 technology, advanced manufacturing, value=added agriculture,
3520 and any other industry designated as a targeted industry by
3530 the loan and credit guarantee advisory board department.
3540 Sec. 26. Section 15E.224, subsections 1, 3, 5, and 7, Code
3550 Supplement 2003, as reaffirmed and reenacted by this division
3560 of this Act, are amended to read as follows:
3570 1. The department shall, with the advice of the loan and
3580 credit guarantee advisory board, establish and administer a
3590 loan and credit guarantee program. The department, pursuant
3600 to agreements with financial institutions, shall provide loan
3610 and credit guarantees, or other forms of credit guarantees for
3620 qualified businesses and targeted industry businesses for
3630 eligible project costs. A loan or credit guarantee provided
3640 under the program may stand alone or may be used in
3650 conjunction with or to enhance other loans or credit
3660 guarantees offered by private, state, or federal entities.
3670 The department may purchase insurance to cover defaulted loans
3680 meeting the requirements of the program. However, the
3690 department shall not in any manner directly or indirectly
3700 pledge the credit of the state. Eligible project costs
3710 include expenditures for productive equipment and machinery,
3720 working capital for operations and export transactions,
3730 research and development, marketing, and such other costs as
3740 the department may so designate.
3750 3. In administering the program, the department shall
3760 consult and cooperate with financial institutions in this
3770 state and with the loan and credit guarantee advisory board.
3780 Administrative procedures and application procedures, as
3790 practicable, shall be responsive to the needs of qualified
3800 businesses, targeted industry businesses, and financial
3810 institutions, and shall be consistent with prudent investment
3820 and lending practices and criteria.
3830 5. The department, with the advice of the loan and credit
3840 guarantee advisory board, shall adopt a loan or credit
3850 guarantee application procedure for a financial institution on
3860 behalf of a qualified business or targeted industry business.
3870 7. The department, with the advice of the loan and credit
3880 guarantee advisory board, may adopt loan and credit guarantee
3890 application procedures that allow a qualified business or
3900 targeted industry business to apply directly to the department
3910 for a preliminary guarantee commitment. A preliminary
3920 guarantee commitment may be issued by the department subject
3930 to the qualified business or targeted industry business
3940 securing a commitment for financing from a financial
3950 institution. The application procedures shall specify the
3960 process by which a financial institution may obtain a final
3970 loan and credit guarantee.
3980 Sec. 27. Section 15E.225, subsections 1 and 2, Code
3990 Supplement 2003, as reaffirmed and reenacted by this division
4000 of this Act, are amended to read as follows:
4010 1. When entering into a loan or credit guarantee
4020 agreement, the department, with the advice of the loan and
4030 credit guarantee advisory board, shall establish fees and
4040 other terms for participation in the program by qualified
4050 businesses and targeted industry businesses.
4060 2. The department, with due regard for the possibility of
4070 losses and administrative costs and with the advice of the
4080 loan and credit guarantee advisory board, shall set fees and
4090 other terms at levels sufficient to assure that the program is
4100 self=financing.
4110 Sec. 28. Section 15E.227, subsection 2, paragraph c, Code
4120 Supplement 2003, is amended by striking the paragraph.
4130 Sec. 29. EFFECTIVE DATE AND RETROACTIVE APPLICABILITY
4140 PROVISIONS. This division of this Act, being deemed of
4150 immediate importance, takes effect upon enactment, and is
4160 retroactively applicable to July 1, 2003.
4180 DIVISION VII
4190 ADMINISTRATIVE CONTRIBUTION SURCHARGE
4210 Sec. 30. Section 96.9, subsection 8, paragraph e, Code
4220 Supplement 2003, is amended to read as follows:
4230 e. Moneys from interest earned on the unemployment
4240 compensation reserve fund shall be used by the department only
4250 upon appropriation by the general assembly and only for
4260 purposes contained in section 96.7, subsection 12, for
4270 department of workforce development rural satellite offices,
4280 and for administrative costs to collect the reserve
4290 contributions.
4300 Sec. 31. CODE EDITOR'S REMOVAL OF SECTION 96.7, SUBSECTION
4310 12, FROM CODE. Consistent with the Iowa supreme court
4320 decision of Rants and Iverson v. Vilsack, No. 60/03=1948, June
4330 16, 2004, the general assembly acknowledges the Code editor's
4340 removal of section 96.7, subsection 12, relating to the
4350 administrative contribution surcharge and fund, from the Code,
4360 due to the subsection's repeal effective July 1, 2003.
4370 Sec. 32. EFFECTIVE DATE. This division of this Act, being
4380 deemed of immediate importance, takes effect upon enactment
4390 and applies retroactively to July 1, 2003.
4410 DIVISION VIII
4420 MARKETING
4440 Sec. 33. Section 15G.109, as published in Iowa Code
4450 Supplement 2003, pertaining to the economic development
4460 marketing board, is reaffirmed and reenacted.
4470 Sec. 34. Section 15G.109, subsections 1, 2, and 5, Code
4480 Supplement 2003, as reaffirmed and reenacted by this division
4490 of this Act, are amended by striking the subsections.
4500 Sec. 35. Section 15G.109, subsections 3 and 4, Code
4510 Supplement 2003, as reaffirmed and reenacted by this division
4520 of this Act, are amended to read as follows:
4530 3. The department of economic development marketing board
4540 shall accept proposals for marketing strategies for purposes
4550 of selecting a strategy for the department to administer. The
4560 marketing strategies shall be designed to market Iowa as a
4570 lifestyle, increase the population of the state, increase the
4580 wealth of Iowans, and expand and stimulate the state economy.
4590 The economic development marketing board shall submit a
4600 recommendation regarding the proposal to the grow Iowa values
4610 board. In selecting a marketing strategy for recommendation,
4620 the economic development marketing board shall base the
4630 selection on the goals and performance measures provided in
4640 section 15G.107. The grow Iowa values board shall either
4650 approve or deny the recommendation. The department shall
4660 select and approve a proposal that meets the requirements of
4670 this subsection.
4680 4. The department shall implement and administer the
4690 approved marketing strategy approved by the grow Iowa values
4700 board as provided in subsection 3. The department shall
4710 provide the economic development marketing board with
4720 assistance in implementing administrative functions of the
4730 board and provide technical assistance to the board.
4740 Sec. 36. EFFECTIVE DATE AND RETROACTIVE APPLICABILITY.
4750 This division of this Act, being deemed of immediate
4760 importance, takes effect upon enactment. The section of this
4770 division of this Act reaffirming and reenacting Code section
4780 15G.109 is retroactively applicable to July 1, 2003.
4800 DIVISION IX
4810 INCOME TAXATION
4820 BONUS DEPRECIATION AND EXPENSING ALLOWANCE
4840 Sec. 37. Section 422.3, subsection 5, Code Supplement
4850 2003, is amended to read as follows:
4860 5. "Internal Revenue Code" means the Internal Revenue Code
4870 of 1954, prior to the date of its redesignation as the
4880 Internal Revenue Code of 1986 by the Tax Reform Act of 1986,
4890 or means the Internal Revenue Code of 1986 as amended to and
4900 including January 1, 2003, and as amended by Pub. L. No. 108=
4910 27, section 202, whichever is applicable.
4920 Sec. 38. Section 422.7, subsection 39, Code Supplement
4930 2003, is amended to read as follows:
4940 39. a. The additional first=year depreciation allowance
4950 authorized in section 168(k) of the Internal Revenue Code, as
4960 enacted by Pub. L. No. 107=147, section 101, does not apply in
4970 computing net income for state tax purposes. If the taxpayer
4980 has taken such deduction in computing federal adjusted gross
4990 income, the following adjustments shall be made:
5000 a. (1) Add the total amount of depreciation taken on all
5010 property for which the election under section 168(k) of the
5020 Internal Revenue Code was made for the tax year.
5030 b. (2) Subtract an amount equal to depreciation taken
5040 allowed on such property for the tax year using the modified
5050 accelerated cost recovery system depreciation method
5060 applicable under section 168 of the Internal Revenue Code
5070 without regard to section 168(k).
5080 c. (3) Any other adjustments to gains or losses to
5090 reflect the adjustments made in paragraphs "a" and "b"
5100 subparagraphs (1) and (2) pursuant to rules adopted by the
5110 director.
5120 b. The additional first=year depreciation allowance
5130 authorized in section 168(k)(4) of the Internal Revenue Code,
5140 as enacted by Pub. L. No. 108=27, shall apply in computing net
5150 income for state tax purposes, for qualified property acquired
5160 after May 5, 2003, and before January 1, 2005.
5170 Sec. 39. Section 422.32, subsection 7, Code Supplement
5180 2003, is amended to read as follows:
5190 7. "Internal Revenue Code" means the Internal Revenue Code
5200 of 1954, prior to the date of its redesignation as the
5210 Internal Revenue Code of 1986 by the Tax Reform Act of 1986,
5220 or means the Internal Revenue Code of 1986 as amended to and
5230 including January 1, 2003, and as amended by Pub. L. No. 108=
5240 27, section 202, whichever is applicable.
5250 Sec. 40. Section 422.35, subsection 19, Code Supplement
5260 2003, is amended to read as follows:
5270 19. a. The additional first=year depreciation allowance
5280 authorized in section 168(k) of the Internal Revenue Code, as
5290 enacted by Pub. L. No. 107=147, section 101, does not apply in
5300 computing net income for state tax purposes. If the taxpayer
5310 has taken such deduction in computing taxable income, the
5320 following adjustments shall be made:
5330 a. (1) Add the total amount of depreciation taken on all
5340 property for which the election under section 168(k) of the
5350 Internal Revenue Code was made for the tax year.
5360 b. (2) Subtract an amount equal to depreciation taken
5370 allowed on such property for the tax year using the modified
5380 accelerated cost recovery system depreciation method
5390 applicable under section 168 of the Internal Revenue Code
5400 without regard to section 168(k).
5410 c. (3) Any other adjustments to gains or losses to
5420 reflect the adjustments made in paragraphs "a" and "b"
5430 subparagraphs (1) and (2) pursuant to rules adopted by the
5440 director.
5450 b. The additional first=year depreciation allowance
5460 authorized in section 168(k)(4) of the Internal Revenue Code,
5470 as enacted by Pub. L. No. 108=27, shall apply in computing net
5480 income for state tax purposes, for qualified property acquired
5490 after May 5, 2003, and before January 1, 2005.
5500 Sec. 41. RETROACTIVE APPLICABILITY.
5510 1. The sections of this division of this Act amending
5520 section 422.7, subsection 39, and section 422.35, subsection
5530 19, apply retroactively to tax years ending after May 5, 2003.
5540 2. The sections of this division of this Act amending
5550 sections 422.3, subsection 5, and 422.32, subsection 7, apply
5560 retroactively to January 1, 2003, for tax years beginning on
5570 or after that date.
5580 Sec. 42. EFFECTIVE DATE. This division of this Act, being
5590 deemed of immediate importance, takes effect upon enactment.
5610 DIVISION X
5620 ADVISORY CAPACITY OF BOARDS
5640 Sec. 43. ADVISORY CAPACITY OF BOARDS. For only the fiscal
5650 year beginning July 1, 2004, and ending June 30, 2005, the
5660 establishment and existence of the grow Iowa values board, the
5670 economic development marketing board, and the loan and credit
5680 guarantee advisory board, as provided for in 2003 Iowa Acts,
5690 First Extraordinary Session, chapter 1 (House File 692), are
5700 validated. However, the boards shall serve only in an
5710 advisory capacity to the department of economic development.
5720 The composition of the boards shall consist of the membership
5730 in existence on June 15, 2004.
5740 Sec. 44. EFFECTIVE DATE PROVISION. This division of this
5750 Act, being deemed of immediate importance, takes effect upon
5760 enactment.
7660
7670
7680
7690 CHRISTOPHER C. RANTS
7700 Speaker of the House
7710
7720
7730
7740 JEFFREY M. LAMBERTI
7750 President of the Senate
7760
7770 I hereby certify that this bill originated in the House and
7780 is known as House File 2581, Eightieth General Assembly.
7790
7800
7810
7820 MARGARET THOMSON
7830 Chief Clerk of the House
7840 Approved , 2004
7850
7860
7870
7880 THOMAS J. VILSACK
7890 Governor
Text: HF02580 Text: HF02582 Text: HF02500 - HF02599 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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