House Amendment 1014


PAG LIN




     1  1    Amend House File 102 as follows:
     1  2 #1.  Page 1, by inserting after line 26 the
     1  3 following:
     1  4    <Sec. 50.  Section 422.7, Code 2005, is amended by
     1  5 adding the following new subsection:
     1  6    NEW SUBSECTION.  44.  A taxpayer may elect not to
     1  7 take the increased expensing allowance under section
     1  8 179 of the Internal Revenue Code, as amended by Pub.
     1  9 L. No. 108=27, section 202, in computing state tax
     1 10 purposes.  If the taxpayer does not take the increased
     1 11 expensing allowance under section 179 of the Internal
     1 12 Revenue Code for state tax purposes, the following
     1 13 adjustments shall be made:
     1 14    a.  Add the total amount of expense deduction taken
     1 15 on section 179 property for federal tax purposes under
     1 16 section 179 of the Internal Revenue Code.
     1 17    b.  Subtract the amount of expense deduction on
     1 18 section 179 property allowable for federal tax
     1 19 purposes under section 179 of the Internal Revenue
     1 20 Code prior to enactment of Pub. L. No. 108=27, section
     1 21 202.
     1 22    c.  Any other adjustments to gains and losses to
     1 23 the adjustments make in paragraphs "a" and "b"
     1 24 pursuant to rules adopted by the director.>
     1 25 #2.  Page 2, by inserting after line 17 the
     1 26 following:
     1 27    <Sec. 51.  Section 422.35, Code 2005, is amended by
     1 28 adding the following new subsection:
     1 29    NEW SUBSECTION.  20.  A taxpayer may elect not to
     1 30 take the increased expensing allowance under section
     1 31 179 of the Internal Revenue Code, as amended by Pub.
     1 32 L. No. 108=27, section 202, in computing state tax
     1 33 purposes.  If the taxpayer does not take the increased
     1 34 expensing allowance under section 179 of the Internal
     1 35 Revenue Code for state tax purposes, the following
     1 36 adjustments shall be made:
     1 37    a.  Add the total amount of expense deduction taken
     1 38 on section 179 property for federal tax purposes under
     1 39 section 179 of the Internal Revenue Code.
     1 40    b.  Subtract the amount of expense deduction on
     1 41 section 179 property allowable for federal tax
     1 42 purposes under section 179 of the Internal Revenue
     1 43 Code prior to enactment of Pub. L. No. 108=27, section
     1 44 202.
     1 45    c.  Any other adjustments to gains and losses to
     1 46 the adjustments make in paragraphs "a" and "b"
     1 47 pursuant to rules adopted by the director.>
     1 48 #3.  Page 3, line 1, by inserting after the figure
     1 49 <2003.> the following:  <Sections 50 and 51 of this
     1 50 Act apply retroactively to tax years beginning on or
     2  1 after January 1, 2003.>
     2  2 #4.  Title page, line 3, by inserting after the
     2  3 word <and> the following:  <the increased expensing
     2  4 allowance and>.
     2  5
     2  6
     2  7
     2  8                               
     2  9 CARROLL of Poweshiek
     2 10 HF 102.701 81
     2 11 mg/gg/444

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