House File 779 H-1309 Amend House File 779 as follows: 1 1. Page 7, after line 13 by inserting: 2 < Sec. ___. Section 423.1, subsection 2, paragraphs b and c, 3 Code 2019, are amended to read as follows: 4 b. Is directly, indirectly, or constructively controlled by 5 another entity person . 6 c. Is subject to the control of a common entity person . A 7 common entity person is one which a person who owns directly 8 or individually indirectly more than ten percent of the voting 9 securities of the entity. > 10 2. Page 10, after line 15 by inserting: 11 < 1. The section of this division of this Act amending 12 section 423.1, subsection 2, paragraphs “b” and “c”. > 13 3. Page 10, line 16, before < The > by inserting < 2. > 14 4. Page 10, after line 17 by inserting: 15 < Sec. ___. RETROACTIVE APPLICABILITY. The following 16 applies retroactively to January 1, 2019, for tax years 17 beginning on or after that date: 18 The section of this division of this Act amending section 19 423.1, subsection 2, paragraphs “b” and “c”. > 20 5. Page 11, lines 7 and 8, by striking < required to collect 21 sales or use tax under chapter 423 > 22 6. Page 11, lines 13 and 14, by striking < required to 23 collect sales or use tax under chapter 423 > 24 7. By striking page 15, line 30, through page 17, line 7, 25 and inserting: 26 < Sec. ___. NEW SECTION . 433.4A Competitive long distance 27 telephone company property. 28 For assessment years beginning before January 1, 2022, 29 the director of revenue shall assess the property of a long 30 distance telephone company, as defined in section 476.1D, 31 subsection 10, Code 2018, previously classified by the 32 utilities board as a competitive long distance telephone 33 company under section 476.1D, subsection 10, Code 2018, which 34 property is first assessed for taxation in this state on or 35 -1- HF779.2444 (1) 88 jm/jh 1/ 4 #1. #2. #3. #4. #5. #6. #7.

after January 1, 1996, in the same manner as all other property 1 assessed as commercial property by the local assessor under 2 chapters 427, 427A, 427B, 428, and 441. 3 Sec. ___. EFFECTIVE DATE. This division of this Act, being 4 deemed of immediate importance, takes effect upon enactment. 5 Sec. ___. RETROACTIVE APPLICABILITY. This division of this 6 Act applies retroactively to July 1, 2018. > 7 8. Page 17, line 14, by striking < 2020 > and inserting < 2021 > 8 9. Page 17, line 31, by striking < fourteen > and inserting 9 < fifteen > 10 10. Page 21, after line 22 by inserting: 11 < Sec. ___. EFFECTIVE DATE. This division of this Act, being 12 deemed of immediate importance, takes effect upon enactment. 13 Sec. ___. RETROACTIVE APPLICABILITY. This division of this 14 Act applies retroactively to May 30, 2018. > 15 11. Page 22, by striking lines 18 through 24. 16 12. Page 22, after line 24 by inserting: 17 < DIVISION ___ 18 ADOPTION TAX CREDIT 19 Sec. ___. Section 422.12A, subsection 2, Code 2019, is 20 amended to read as follows: 21 2. The taxes imposed under this division , less the credits 22 allowed under section 422.12 , shall be reduced by an adoption 23 tax credit equal to the amount of qualified adoption expenses 24 paid or incurred by the taxpayer during the tax year in 25 connection with the adoption of a child by the taxpayer, not to 26 exceed five thousand dollars per adoption. 27 Sec. ___. Section 422.12A, Code 2019, is amended by adding 28 the following new subsection: 29 NEW SUBSECTION . 3A. The credit under this section with 30 respect to any qualified adoption expense shall be allowed 31 during a tax year as follows: 32 a. For any qualified adoption expense paid or incurred prior 33 to or during the tax year in which the adoption becomes final, 34 the tax year in which the adoption becomes final. 35 -2- HF779.2444 (1) 88 jm/jh 2/ 4 #8. #9. #10. #11. #12.

b. For any qualified adoption expense paid or incurred after 1 the tax year in which the adoption becomes final, the tax year 2 in which an adoption expense is paid or incurred. 3 Sec. ___. RETROACTIVE APPLICABILITY. This division of this 4 Act applies retroactively to January 1, 2019, for tax years 5 beginning on or after that date. 6 DIVISION ___ 7 UTILITY REPLACEMENT TASK FORCE 8 Sec. ___. Section 437A.15, subsection 7, paragraph b, Code 9 2019, is amended to read as follows: 10 b. The task force shall study the effects of the replacement 11 taxes under this chapter and chapter 437B on local taxing 12 authorities, local taxing districts, consumers, and taxpayers 13 through January 1, 2019 2024 . If the task force recommends 14 modifications to the replacement tax that will further the 15 purposes of tax neutrality for local taxing authorities, local 16 taxing districts, taxpayers, and consumers, consistent with the 17 stated purposes of this chapter , the department of management 18 shall transmit those recommendations to the general assembly. 19 DIVISION ___ 20 FRANCHISE TAX —— ALTERNATIVE MINIMUM TAX (AMT) REPEAL 21 Sec. ___. Section 422.60, subsection 2, Code 2019, is 22 amended by adding the following new paragraph: 23 NEW PARAGRAPH . c. This subsection is repealed January 1, 24 2021, for tax years beginning on or after that date. 25 Sec. ___. Section 422.60, subsection 3, Code 2019, is 26 amended to read as follows: 27 3. a. (1) There For tax years beginning before January 1, 28 2022, there is allowed as a credit against the tax determined 29 in section 422.63 for a tax year an amount equal to the minimum 30 tax credit for that tax year. 31 (2) The minimum tax credit for a tax year is the excess, 32 if any, of the net minimum tax imposed for all prior tax years 33 beginning on or after January 1, 1987, but before January 34 1, 2021, over the amount allowable as a credit under this 35 -3- HF779.2444 (1) 88 jm/jh 3/ 4

subsection for those prior tax years. 1 b. (1) The allowable credit under paragraph “a” for a tax 2 year beginning before January 1, 2021, shall not exceed the 3 excess, if any, of the tax determined in section 422.63 over 4 the state alternative minimum tax as determined in subsection 5 2 . The allowable credit under paragraph “a” for a tax year 6 beginning in the 2021 calendar year shall not exceed the tax 7 determined in section 422.63. 8 (2) The net minimum tax for a tax year is the excess, if 9 any, of the tax determined in subsection 2 for the tax year 10 over the tax determined in section 422.63 for the tax year. 11 c. This subsection is repealed January 1, 2022, for tax 12 years beginning on or after that date. 13 DIVISION ___ 14 MONEYS AND CREDITS TAX ON STATE CREDIT UNIONS 15 Sec. ___. Section 533.329, subsection 2, paragraph a, Code 16 2019, is amended to read as follows: 17 a. The moneys and credits tax on state credit unions is 18 imposed at a rate of one-half cent on each dollar of the legal 19 and special reserves that are required to be maintained by the 20 state credit union under section 533.303 , and shall be levied 21 by the board of supervisors and placed upon the tax list and 22 collected by the county treasurer . However, an exemption shall 23 be given to each state credit union in the amount of forty 24 thousand dollars. > 25 13. Title page, line 5, after < franchise taxes, > by 26 inserting < moneys and credits taxes, > 27 14. Title page, line 8, after < force, > by inserting 28 < extending the utility replacement task force, > 29 15. By renumbering as necessary. 30 ______________________________ HITE of Mahaska -4- HF779.2444 (1) 88 jm/jh 4/ 4 #13. #14. #15.