Senate File 2303 S-5090 Amend Senate File 2303 as follows: 1 1. Page 1, line 2, after < REFERENCES > by inserting 2 < AND BONUS DEPRECIATION > 3 2. By striking page 1, line 3, through page 3, line 4 4, and inserting: 5 < Section 1. Section 15.335, subsection 7, paragraph 6 b, Code 2016, is amended to read as follows: 7 b. For purposes of this section , “Internal Revenue 8 Code” means the Internal Revenue Code in effect on 9 January 1, 2015 2016 . 10 Sec. ___. Section 422.3, subsection 5, Code 2016, 11 is amended to read as follows: 12 5. “Internal Revenue Code” means the Internal 13 Revenue Code of 1954, prior to the date of its 14 redesignation as the Internal Revenue Code of 1986 15 by the Tax Reform Act of 1986, or means the Internal 16 Revenue Code of 1986 as amended to and including 17 January 1, 2015 2016 . 18 Sec. ___. Section 422.7, subsection 39A, unnumbered 19 paragraph 1, Code 2016, is amended to read as follows: 20 The additional first-year depreciation allowance 21 authorized in section 168(k) of the Internal Revenue 22 Code, as enacted by Pub. L. No. 110-185, §103, Pub. L. 23 No. 111-5, §1201, Pub. L. No. 111-240, §2022, Pub. L. 24 No. 111-312, §401, Pub. L. No. 112-240, §331, and Pub. 25 L. No. 113-295, §125, and Pub. L. No. 114-113, §143, 26 does not apply in computing net income for state tax 27 purposes. If the taxpayer has taken the additional 28 first-year depreciation allowance for purposes of 29 computing federal adjusted gross income, then the 30 taxpayer shall make the following adjustments to 31 federal adjusted gross income when computing net income 32 for state tax purposes: 33 Sec. ___. Section 422.9, subsection 2, paragraph i, 34 Code 2016, is amended to read as follows: 35 -1- SF2303.3096 (3) 86 mm/rj 1/ 3 #1. #2.

i. The deduction for state sales and use taxes 1 is allowable only if the taxpayer elected to deduct 2 the state sales and use taxes in lieu of state income 3 taxes under section 164 of the Internal Revenue Code. 4 A deduction for state sales and use taxes is not 5 allowed if the taxpayer has taken the deduction for 6 state income taxes or claimed the standard deduction 7 under section 63 of the Internal Revenue Code. This 8 paragraph applies to taxable years beginning after 9 December 31, 2003, and before January 1, 2008, and to 10 taxable years beginning after December 31, 2009 , and 11 before January 1, 2015 . 12 Sec. ___. Section 422.10, subsection 3, paragraph 13 b, Code 2016, is amended to read as follows: 14 b. For purposes of this section , “Internal Revenue 15 Code” means the Internal Revenue Code in effect on 16 January 1, 2015 2016 . 17 Sec. ___. Section 422.32, subsection 1, paragraph 18 h, Code 2016, is amended to read as follows: 19 h. “Internal Revenue Code” means the Internal 20 Revenue Code of 1954, prior to the date of its 21 redesignation as the Internal Revenue Code of 1986 22 by the Tax Reform Act of 1986, or means the Internal 23 Revenue Code of 1986 as amended to and including 24 January 1, 2015 2016 . 25 Sec. ___. Section 422.33, subsection 5, paragraph 26 e, subparagraph (2), Code 2016, is amended to read as 27 follows: 28 (2) For purposes of this subsection , “Internal 29 Revenue Code” means the Internal Revenue Code in effect 30 on January 1, 2015 2016 . 31 Sec. ___. Section 422.35, subsection 19A, 32 unnumbered paragraph 1, Code 2016, is amended to read 33 as follows: 34 The additional first-year depreciation allowance 35 -2- SF2303.3096 (3) 86 mm/rj 2/ 3

authorized in section 168(k) of the Internal Revenue 1 Code, as enacted by Pub. L. No. 110-185, §103, Pub. L. 2 No. 111-5, §1201, Pub. L. No. 111-240, §2022, Pub. L. 3 No. 111-312, §401, Pub. L. No. 112-240, §331, and Pub. 4 L. No. 113-295, §125, and Pub. L. No. 114-113, §143, 5 does not apply in computing net income for state tax 6 purposes. If the taxpayer has taken the additional 7 first-year depreciation allowance for purposes of 8 computing federal taxable income, then the taxpayer 9 shall make the following adjustments to federal 10 taxable income when computing net income for state tax 11 purposes: 12 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 13 of this Act, being deemed of immediate importance, 14 takes effect upon enactment. 15 Sec. ___. RETROACTIVE APPLICABILITY. 16 1. Except as provided in subsection 2, this 17 division of this Act applies retroactively to January 18 1, 2015, for tax years beginning on or after that date. 19 2. The sections of this division of this Act 20 amending sections 422.7 and 422.35 apply retroactively 21 to January 1, 2015, for tax years ending on or after 22 that date. > 23 3. Title page, line 1, by striking < temporarily > 24 4. By renumbering as necessary. 25 ______________________________ RANDY FEENSTRA -3- SF2303.3096 (3) 86 mm/rj 3/ 3 #3. #4.