House File 2433 S-5092 Amend House File 2433, as passed by the House, as 1 follows: 2 1. Page 1, line 2, after < REFERENCES > by inserting 3 < AND BONUS DEPRECIATION > 4 2. By striking page 1, line 3, through page 3, line 5 4, and inserting: 6 < Section 1. Section 15.335, subsection 7, paragraph 7 b, Code 2016, is amended to read as follows: 8 b. For purposes of this section , “Internal Revenue 9 Code” means the Internal Revenue Code in effect on 10 January 1, 2015 2016 . 11 Sec. ___. Section 422.3, subsection 5, Code 2016, 12 is amended to read as follows: 13 5. “Internal Revenue Code” means the Internal 14 Revenue Code of 1954, prior to the date of its 15 redesignation as the Internal Revenue Code of 1986 16 by the Tax Reform Act of 1986, or means the Internal 17 Revenue Code of 1986 as amended to and including 18 January 1, 2015 2016 . 19 Sec. ___. Section 422.7, subsection 39A, unnumbered 20 paragraph 1, Code 2016, is amended to read as follows: 21 The additional first-year depreciation allowance 22 authorized in section 168(k) of the Internal Revenue 23 Code, as enacted by Pub. L. No. 110-185, §103, Pub. L. 24 No. 111-5, §1201, Pub. L. No. 111-240, §2022, Pub. L. 25 No. 111-312, §401, Pub. L. No. 112-240, §331, and Pub. 26 L. No. 113-295, §125, and Pub. L. No. 114-113, §143, 27 does not apply in computing net income for state tax 28 purposes. If the taxpayer has taken the additional 29 first-year depreciation allowance for purposes of 30 computing federal adjusted gross income, then the 31 taxpayer shall make the following adjustments to 32 federal adjusted gross income when computing net income 33 for state tax purposes: 34 Sec. ___. Section 422.9, subsection 2, paragraph i, 35 -1- HF2433.3102 (2) 86 mm/rj 1/ 3 #1. #2.

Code 2016, is amended to read as follows: 1 i. The deduction for state sales and use taxes 2 is allowable only if the taxpayer elected to deduct 3 the state sales and use taxes in lieu of state income 4 taxes under section 164 of the Internal Revenue Code. 5 A deduction for state sales and use taxes is not 6 allowed if the taxpayer has taken the deduction for 7 state income taxes or claimed the standard deduction 8 under section 63 of the Internal Revenue Code. This 9 paragraph applies to taxable years beginning after 10 December 31, 2003, and before January 1, 2008, and to 11 taxable years beginning after December 31, 2009 , and 12 before January 1, 2015 . 13 Sec. ___. Section 422.10, subsection 3, paragraph 14 b, Code 2016, is amended to read as follows: 15 b. For purposes of this section , “Internal Revenue 16 Code” means the Internal Revenue Code in effect on 17 January 1, 2015 2016 . 18 Sec. ___. Section 422.32, subsection 1, paragraph 19 h, Code 2016, is amended to read as follows: 20 h. “Internal Revenue Code” means the Internal 21 Revenue Code of 1954, prior to the date of its 22 redesignation as the Internal Revenue Code of 1986 23 by the Tax Reform Act of 1986, or means the Internal 24 Revenue Code of 1986 as amended to and including 25 January 1, 2015 2016 . 26 Sec. ___. Section 422.33, subsection 5, paragraph 27 e, subparagraph (2), Code 2016, is amended to read as 28 follows: 29 (2) For purposes of this subsection , “Internal 30 Revenue Code” means the Internal Revenue Code in effect 31 on January 1, 2015 2016 . 32 Sec. ___. Section 422.35, subsection 19A, 33 unnumbered paragraph 1, Code 2016, is amended to read 34 as follows: 35 -2- HF2433.3102 (2) 86 mm/rj 2/ 3

The additional first-year depreciation allowance 1 authorized in section 168(k) of the Internal Revenue 2 Code, as enacted by Pub. L. No. 110-185, §103, Pub. L. 3 No. 111-5, §1201, Pub. L. No. 111-240, §2022, Pub. L. 4 No. 111-312, §401, Pub. L. No. 112-240, §331, and Pub. 5 L. No. 113-295, §125, and Pub. L. No. 114-113, §143, 6 does not apply in computing net income for state tax 7 purposes. If the taxpayer has taken the additional 8 first-year depreciation allowance for purposes of 9 computing federal taxable income, then the taxpayer 10 shall make the following adjustments to federal 11 taxable income when computing net income for state tax 12 purposes: 13 Sec. ___. EFFECTIVE UPON ENACTMENT. This division 14 of this Act, being deemed of immediate importance, 15 takes effect upon enactment. 16 Sec. ___. RETROACTIVE APPLICABILITY. 17 1. Except as provided in subsection 2, this 18 division of this Act applies retroactively to January 19 1, 2015, for tax years beginning on or after that date. 20 2. The sections of this division of this Act 21 amending sections 422.7 and 422.35 apply retroactively 22 to January 1, 2015, for tax years ending on or after 23 that date. > 24 3. Title page, line 1, by striking < temporarily > 25 4. By renumbering as necessary. 26 ______________________________ RANDY FEENSTRA -3- HF2433.3102 (2) 86 mm/rj 3/ 3 #3. #4.