Text: SSB03161                          Text: SSB03163
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Senate Study Bill 3162

Bill Text

PAG LIN
  1  1    Section 1.  Section 15.335, subsection 4, unnumbered
  1  2 paragraph 2, Code Supplement 2003, is amended to read as
  1  3 follows:
  1  4    For purposes of this section, "Internal Revenue Code" means
  1  5 the Internal Revenue Code in effect on January 1, 2003 2004.
  1  6    Sec. 2.  Section 15A.9, subsection 8, paragraph e,
  1  7 unnumbered paragraph 2, Code Supplement 2003, is amended to
  1  8 read as follows:
  1  9    For purposes of this subsection, "Internal Revenue Code"
  1 10 means the Internal Revenue Code in effect on January 1, 2003
  1 11 2004.
  1 12    Sec. 3.  Section 422.3, subsection 5, Code Supplement 2003,
  1 13 is amended to read as follows:
  1 14    5.  "Internal Revenue Code" means the Internal Revenue Code
  1 15 of 1954, prior to the date of its redesignation as the
  1 16 Internal Revenue Code of 1986 by the Tax Reform Act of 1986,
  1 17 or means the Internal Revenue Code of 1986 as amended to and
  1 18 including January 1, 2003 2004, whichever is applicable.
  1 19    Sec. 4.  Section 422.7, subsection 39, unnumbered paragraph
  1 20 1, Code Supplement 2003, is amended to read as follows:
  1 21    The additional first-year depreciation allowance authorized
  1 22 in section 168(k) of the Internal Revenue Code, as enacted by
  1 23 Pub. L. No. 107-147, section 101, and amended by Pub. L. No.
  1 24 108-27, section 201, does not apply in computing net income
  1 25 for state tax purposes.  If the taxpayer has taken such
  1 26 deduction in computing federal adjusted gross income, the
  1 27 following adjustments shall be made:
  1 28    Sec. 5.  Section 422.7, subsection 39, paragraph b, Code
  1 29 Supplement 2003, is amended to read as follows:
  1 30    b.  Subtract an amount equal to depreciation taken allowed
  1 31 on such property for the tax year using the modified
  1 32 accelerated cost recovery system depreciation method
  1 33 applicable under section 168 of the Internal Revenue Code
  1 34 without regard to section 168(k).
  1 35    Sec. 6.  Section 422.10, subsection 3, unnumbered paragraph
  2  1 2, Code Supplement 2003, is amended to read as follows:
  2  2    For purposes of this section, "Internal Revenue Code" means
  2  3 the Internal Revenue Code in effect on January 1, 2003 2004.
  2  4    Sec. 7.  Section 422.32, subsection 7, Code Supplement
  2  5 2003, is amended to read as follows:
  2  6    7.  "Internal Revenue Code" means the Internal Revenue Code
  2  7 of 1954, prior to the date of its redesignation as the
  2  8 Internal Revenue Code of 1986 by the Tax Reform Act of 1986,
  2  9 or means the Internal Revenue Code of 1986 as amended to and
  2 10 including January 1, 2003 2004, whichever is applicable.
  2 11    Sec. 8.  Section 422.33, subsection 5, paragraph d,
  2 12 unnumbered paragraph 2, Code Supplement 2003, is amended to
  2 13 read as follows:
  2 14    For purposes of this section, "Internal Revenue Code" means
  2 15 the Internal Revenue Code in effect on January 1, 2003 2004.
  2 16    Sec. 9.  Section 422.35, subsection 19, unnumbered
  2 17 paragraph 1, Code Supplement 2003, is amended to read as
  2 18 follows:
  2 19    The additional first-year depreciation allowance authorized
  2 20 in section 168(k) of the Internal Revenue Code, as enacted by
  2 21 Pub. L. No. 107-147, section 101, and amended by Pub. L. No.
  2 22 108-27, section 201, does not apply in computing net income
  2 23 for state tax purposes.  If the taxpayer has taken such
  2 24 deduction in computing taxable income, the following
  2 25 adjustments shall be made:
  2 26    Sec. 10.  Section 422.35, subsection 19, paragraph b, Code
  2 27 Supplement 2003, is amended to read as follows:
  2 28    b.  Subtract an amount equal to depreciation taken allowed
  2 29 on such property for the tax year using the modified
  2 30 accelerated cost recovery system depreciation method
  2 31 applicable under section 168 of the Internal Revenue Code
  2 32 without regard to section 168(k).
  2 33    Sec. 11.  RETROACTIVE APPLICABILITY.
  2 34    1.  Sections 4 and 9 of this Act, amending section 422.7,
  2 35 subsection 39, unnumbered paragraph 1, and section 422.35,
  3  1 subsection 19, unnumbered paragraph 1, apply retroactively to
  3  2 tax years ending on or after May 5, 2003.
  3  3    2.  The remainder of this Act applies retroactively to
  3  4 January 1, 2003, for tax years beginning on or after that
  3  5 date.
  3  6    Sec. 12.  EFFECTIVE DATE.  This Act, being deemed of
  3  7 immediate importance, takes effect upon enactment.  
  3  8                           EXPLANATION
  3  9    This bill updates the references to the Internal Revenue
  3 10 Code to make the federal income tax revisions enacted by
  3 11 Congress in 2003 applicable for Iowa income tax purposes.
  3 12    Code sections 15.335, 15A.9, 422.10, and 422.33 are amended
  3 13 to update the Iowa Code references to the state research
  3 14 activities credit for individuals, corporations, corporations
  3 15 in economic development areas, and corporations in quality
  3 16 jobs enterprise zones to include the 2003 federal changes in
  3 17 the research activities credit.
  3 18    The bill amends Code sections 422.7 and 422.35 to make
  3 19 adjustments to federal adjusted gross income for individuals
  3 20 and federal taxable income for corporations to disallow, for
  3 21 state income tax purposes, the changes to the bonus
  3 22 depreciation deduction enacted in the federal Jobs and Growth
  3 23 Tax Relief Reconciliation Act of 2003 (Pub. L. No. 108-27).
  3 24    The provisions of the bill updating references to the
  3 25 Internal Revenue Code are retroactively applicable to January
  3 26 1, 2003, for tax years beginning on or after that date.  The
  3 27 provisions of the bill decoupling from the changes to the
  3 28 federal bonus depreciation apply retroactively to tax years
  3 29 ending on or after May 5, 2003.
  3 30    The bill takes effect upon enactment.  
  3 31 LSB 6683SC 80
  3 32 sc/gg/14
     

Text: SSB03161                          Text: SSB03163
Text: SSB03100 - SSB03199               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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